Price rises as high as 10% have been predicted for major city markets following a resurgence in sentiment and activity in the wake of a series of positive events.
Auction clearance rates in Sydney and Melbourne have had another strong showing and recovery in price levels appears to be under way, while market activity elsewhere continues to respond positively to improving consumer confidence.
AMP chief economist Shane Oliver says we can expect to see as much as a 10% rise in house prices as a result. The worst appears to be over for the Sydney and Melbourne property markets after yet another strong weekend of sales. Last weekend, 78% of Sydney properties sold and 74% of Melbourne’s sold, according to real estate platform Domain. While the final figures will be slightly lower, that puts both markets on course for their best results in two years, Oliver says. It marks the sixth consecutive weekend that both capitals have trended above the 60% level and the second-straight week that Sydney has broken the 70% mark, according to Domain.