AUSTRALIAN PROPERTY MARKET SLOWLY BECOMES OPTIMISTIC

For the first time since early May, Melbourne house prices didn’t fall neither did they rise, but flat-lined. There was a sizeable drop in property auctions recently in Melbourne and that may be part of the explanation, a lower number as a result of the annual Spring Racing Carnival.

Currently, home purchasers are showing an increased degree of buying enthusiasm, and appear to be meshing with prospective vendors who are now beginning to step back in and offer properties for sale.

New listings in both capital cities appear to be lifting again through the middle of October, a return to the usual busier spring pattern and maybe a hint of more optimism.

A recent report said that there were 1,908 auctions held across the combined capital cities on the last week of October, down from 2,169 over the previous week and 3,546 that time last year. With 1,501 results collected so far, 59.8% of auctions held were successful, the first time the preliminary clearance rate has slipped below 60% since late August. The last preliminary clearance rate was 2.9% higher (62.7%), revising down to 60.7% at final figures, while this time last year, 76.8% of reported auctions were successful.