Clearance rates in the starting weeks of 2020 were higher than a year ago, reflecting the buyer confidence recovery seen in the very last part of 2019.
Nicola Powell, Domain senior research analyst says: “The market is beginning to load it up forward and we are going to start seeing lots of new listings coming up between now and Easter. Last weekend’s clearance rates really illustrate the confidence that has come back into the market.”
Powell says credit conditions were tough and supply was over-supplied twelve months ago, but a marked improvement in standards has allowed property investors to return to auctions.
“It says that vendors are really confident going into their auction, confident that they have enough buyers to create that competitive auction environment, last year, there were fewer buyers in the market, it was harder to get a loan and we were seeing an elevation of stock,” she says.
The latest clearance results include 83% in Canberra (compared to 52% for the same time last year); 80% in Sydney (57% a year ago); 74% in Melbourne (56% a year ago); 60% in Adelaide (52% a year ago); and 37% in Brisbane (21% a year ago).