Clearance rates reach five year high in 2015
Year to date clearance rates hit a five-year record at 76 per cent
The month of March 2015 has experienced some of the strongest super Saturday weekends in the year to date. There have been over 7,500 auctions held so far this year. At 76 per cent, the clearance rate in the year to 31 March 2015 is at its highest level in five years, which indicates growing demand for properties sold by auction.
Price growth has continued to strengthen, with the REIV House Price Index (HPI) for Melbourne increasing 0.8 per cent to 171.6 from 170.1 in the previous month. The HPI for Regional Victoria rose by 0.9 per cent in March 2015 to 133.5 from 132.3 in February 2015.
Following the Reserve Bank meeting in April 2015, the cash rate was kept on hold at 2.25 per cent. The low interest rate environment is already being priced into the housing market, as confidence in the property market continues to strengthen. Given the increased level of risk aversion in the market, the housing market should continue to experience substantial growth in prices and volumes.
The Research Bulletin provides an overview of a number of current market indicators including:
• House and Unit prices;
• Vacancy rates and rental growth;
• Auctions and clearance rates;
• REIV Property Market Sentiment Index;
• Days on market; and
• Commercial medians.
Source: REIV http://www.reiv.com.au/Unauthorised.aspx?item=%2fnews_publications%2fresearch-bulletin%2fresearch-bulletin-online&user=extranet%5cAnonymous&site=website