Auction clearance rates hit 2007 levels

Auction rates across the country have hit a level last seen in the boom times of 2007, the latest data shows.

The Australian Property Monitors report shows that clearance rates have recovered quickly from the lows seen last year, with activity in Sydney and Melbourne now in line with long-term averages.

The Reserve Bank of Australia’s consecutive interest rate cuts may have had a positive impact on buyer activity, while Australian Property Monitors’ head of research Yvonne Chan told the Australian that the first-home buyers grants may also have helped.

"All the action in the market this year has come from first-home buyers and demand from first-home buyers is definitely still very strong," she said.

The Reserve Bank is broadly expected to keep interest rates on hold at its monthly meeting today (June 2nd), despite upcoming figures demonstrating that Australia has officially slipped into recession.

Treasurer Wayne Swan urged the country to brace for recession in a statement on his website.

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