Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Monday, 24 August 2015

Auctions steadying

CoreLogic-RP Data reported the week's auction results here

Melbourne recorded its weakest preliminary result since February at 73.0 per cent, which is one dynamic that is helping to pull the national average slowly downwards. 

Sydney recorded a preliminary result of 79.9 per cent from 903 homes taken to auction, up from 76.1 per cent for the corresponding weekend last year.

This is some way below the incredibly high results seen in recent months, but nevertheless a very strong result - especially for the City and Inner South which saw a 90.2 per cent preliminary clearance rate recorded. 

The preliminary auction clearance rate for Brisbane was 54.8 per cent from 130 auctions, up from 51.2 per cent on the corresponding weekend last year. 

Overall the largest two capital city property markets of Sydney and Melbourne finally appear to be steadying a little.

However, with more monetary easing looking increasingly likely, there remains every chance that auction clearance rates could revert higher again in the two most populous cities. 

According to sports betting markets you can get $11.00 on an interest rate cut at the very next Reserve Bank meeting on September 1. 

With equities and commodities markets crumbling all over the place, and Aussie stocks diving to a two year low in sympathy, I wouldn't bet against it, although later in the year is still on balance more likely at this stage.