Melbourne and Sydney have experienced a substantial slump in the property markets of late, but it looks like national auction clearance rates are again on the rise, driven by a flood of first home buyers keen to enter the market.
The Australian has reported that research released earlier during the week by RP Data found that auction clearance rates across the country over the past 30 days averaged 70 per cent, compared with a rate of 46 per cent at the end of the last year.
Tim Lawless RP Data's national research director stated that while the clearance rate last month was maintained by comparatively fewer properties being listed for auction, with the total number of auctions down by 22 per cent from last year, the data nevertheless indicated a boost in the confidence of homebuyers.
Mr. Lawless also stated that auction clearance rates were a good facility to gauge the markets sentiments. There is an improvement in consumer confidence with vendors being more realistic about price expectations and buyers are also coming into the market with more realistic expectations.
Melbourne and Sydney first home buyers were driving the property market recovery, with the two capital cities accounting for 80 per cent of all properties sold on auction.
In the month of June 5193 Victorians bought their first home and it was the first time on record that more than 5000 first home buyers entered the states property market in a month.
A strong housing market is critical for underpinning confidence and supporting Australian jobs as we battle the worst global recession in 75 years. Some confidence has returned to the market and there are people desperately looking for places to buy, particularly in the first home buyers market.