After a rise in sentiment and activity following a sequence of favorable development, price increases as high as 10 percent were expected for major city economies. Auction clearance rates in Sydney and Melbourne have had another powerful demonstration and there appears to be a recovery in price levels, while market activity elsewhere continues to react favorably to enhancing consumer confidence.
Shane Oliver AMP chief economist suggests that as a consequence we can expect to see a 10 percent increase in home prices. After another powerful weekend of sales, the worst seems to be over for the Sydney and Melbourne estate markets. According to the actual property platform Domain, 78% of Sydney properties sold last weekend and 74% of Melbourne’s sold.
While the final figures are going to be significantly smaller, Oliver claims that both markets are on course in two years for their highest outcomes. It marks the sixth consecutive weekend that, according to Domain, both capitals trended above the point of 60% and the second straight week that Sydney broke the 70% mark.