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Auctions powered ahead this long weekend following the jolt of the super-sized interest rate rise, with buyers calmly factoring in more hikes to come.
The RBA tightened its monetary policy settings for the second month in a row this week, raising the cash rate target by 50 basis points to 0.85 per cent.
Ray White had 255 auctions scheduled for this Saturday around Australia, with another 348 auctions booked next weekend ahead of the winter school holidays.
Today the group cleared 70 per cent of its auctions under the hammer today, with 4.1 average registered bidders and decent crowds recorded in all markets. Over the week, the group cleared 68.6 per cent, the highest clearance rate for six weeks.
South Australia had an incredible day at 83 per cent clearance with Sydney on 74 per cent. Sydney has recently been recording clearances between 55 per cent and 65 per cent, while Melbourne cleared 75 per cent on the day, and Brisbane cleared 67 per cent today.
Ray White Managing Director Dan White said high turnover was still a hallmark of today’s property market even after the first historic rate rise last month.
“The Australian property market was functioning with high turnover and not too much of a gap between buyers and sellers. It was a big month in May and we did $6.2 billion in sales, up 29 per cent year on year, in a month with a change of government and a rate rise. Willing buyers who bought in May were already pricing in 4-5 interest rate rises so the next rise was to be expected and buyers are factoring in more to come,” he said.
“Of course we take nothing for granted but right now we are defying the headlines.”
Ray White New South Wales Chief Auctioneer Alex Pattaro said it was a balanced week for the Sydney property market as “we saw higher than recent average clearance rates and activity at open for inspections has been higher than previously recorded”.
“Activity on auction day suggests buyers are prepared to transact, though at the right price. Sellers on the market, and those that are coming to the market, can take plenty of confidence with what we are seeing.
“Yes, the clearance is down from last year however, we must remember that last year’s numbers were well above the long term average whereas now we are seeing more normal and stable numbers.”
