Housing Clearance Rate Hits Its Highest Level In Three Years, Low Interest Rates Could Last For Decades
High Clearance Rate of The Week
A total of 506 houses were put up for auction in Sydney, the clearance rate is 84 percent.
A total of 441 homes were auctioned during the same period in 2019, the clearance rate was only 53.4%.
A total of 649 houses were put up for auction in Melbourne, the clearance rate is as high as 77%.
A total of 562 homes were auctioned during the same period in 2019, the clearance rate is only 51%.
A total of 81 homes are up for auction in Brisbane, the clearance rate is 64%.
A total of 41 homes in Canberra are up for auction, the clearance rate is 90%.
Melbourne Market Going Strong
Melbourne has recorded its highest foreclosure rate in three years. Melbourne has a record clearance rate which is the the highest level in three years.
Leah Calnan of Victoria real estate research says, the auction clearing rate has not reached 81 percent since April 2017. Property prices are expected to rise sharply this year. The median single-family home in Melbourne will reach a $1m within 18 months. Australia’s low interest rate policy may last for decades.
Reserve bank of Australia governor Philip Lowe said, because of structural factors in the global economy,Australia’s low interest rate policy is likely to last for years or decades.
The rba cut rates three times in 2019, Interest rates are now at a record low of 0.75 percent, successive rate cuts led to a rapid rebound in house prices, and home prices are near record highs on the east coast. It is predicted that Australian house prices will rise by more than 10% in 2020.
Growth in new home sales optimistic outlook for housing market
According to the latest market report of the Australian real estate industry association (HIA), after the new-home construction industry recorded a rise in sales, This year is expected to be an optimistic one for the housing market.
Diwa Hopkins, an economist at the real estate industry association, “The residential construction industry will be optimistic, after two years of steep declines, real estate activity will stabilize by 2020.”