Strong sales demand and further housing price gains in 2014 for Sydney and Melbourne: ANZ

Strong sales demand and further house price growth is expected over the rest of 2014, according to ANZ.

In the ANZ Australian Housing Market Update, David Cannington noted that auction sales prices have eased with fewer cleared auctions in all capitals for the past week.

Despite this, demand is still strong and in Sydney the elevated auction clearance rate, albeit on a lower number of auctions, was maintained. Melbourne eased below 65% for the first time in 11 weeks.

House prices are continuing to edge higher, with price growth trend remaining strongest in Melbourne, at 1.7% month on month, followed by Sydney at 1.1% month on month.

Brisbane and Perth have remained largely unchanged.

“Reflecting steady consumer confidence in recent weeks, elevated auction sales in Sydney and Melbourne in particular foreshadow strong sales demand and further housing price gains in the remaining months of 2014,” Cannington’s research explained.

Source: ANZ.