Property is still hot, hot, hot!

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The national auction clearance rate edged slightly higher to 66.6% across capital cities, from the 65.7% recorded last week. This week’s result was on par with the 66.9% recorded this time last year.

Weekly clearance rate, combined capital cities

Source: RP Data

The Christmas season is certainly spurring on auction activity and buyers are set to benefit from the volumes which remain at historical highs while demand eases, says research house RP Data.

Capital city auction statistics (preliminary)

Source: RP Data

Sydney’s competitive market recorded a clearance rate of 75.2% on the weekend compared to 71.8% last week, while Melbourne’s eased a little at 63.7% compared to 66.1% last week. RP Data reports that the Victorian state election did not impact on Melbourne’s results, which remain on trend with the mild tapering in demand observed across November.

Christmas cheer for buyers

Christmas looks set to produce the goods for buyers and sellers in 2014, according to the chairman of Century 21 Australia, Charles Tarbey, who says that’s what usually happens at the end of year.

Tarbey says it’s a common misconception that the property market goes sour heading into Christmas because it’s at this time of year that many people start looking for a sea-change.

“This period can be one of active transition for many Australians, as they look to move into new accommodation due to a job change in the New Year, for example, or to be closer to schooling for children,” he says.

And others might want coastal living as the summer heat starts to ramp up.

“This may be a result of the reasonable prices we’ve been seeing for some time in the luxury holiday housing market, which I believe will begin to experience an uplift over coming months.”

Read more of Tarbey’s views on Switzer Home Loans.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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