Melbourne’s property market has continued to strengthen after recording the highest auction clearance rate for 2013.
But property experts have rejected suggestions the market is on the cusp of a boom saying it’s simply too soon to say.
Melbourne recorded a preliminary clearance rate of 82 per cent, up from 74 per cent last weekend.
The clearance rate was just 57 per cent at the same time last year.
Real Estate Institute of Victoria chief Enzo Raimondo said with just over 650 auctions the high clearance rate was a result of latent demand.
“We are definitely not in a boom,” he said.
”We are still coming off a relatively low level of transactions. This high clearance rate is a reflection of an increase in latent demand after a couple or so years of below-average transactions.”
Mr Raimondo said this year’s winter market had been quite buoyant and stronger than last year.
”But it is too early to start declaring booms based on one week of very high clearance rates.”
The clearance rate could change after a further 123 results from Saturday are reported to the REIV.
Experts have been predicting the market would strengthen with recent interest rate cuts and the potential for the Reserve Bank to make one more later this year, or early next year.
They say the market hasn’t had a better spring outlook since 2009.
Strong results across the middle marketand Melbourne’s eastern suburbs are leading the way with recent data showing the city’s outer eastern suburbs have had clearance rates of 85 and 90 per cent in recent weeks.
The latest Australian Bureau of Statistics showed Melbourne’s house price index increased by 2.4 per cent over the June quarter.
Shannon Deery, Herald Sun, 25th August 2013
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