Federal budget measures drive weekend auctions

Housing measures announced in the federal budget drove a high point for Sydney and Melbourne auctions over the weekend, according to Domain's Andrew Wilson.

He said on Saturday, the Sydney recorded an auction clearance rate of 79.6 percent, a sharp increase from the previous weekend’s year-low 73.6 percent.

"This was however lower than the 80.3 percent recorded over the same weekend last year, when interest rate cuts activated the local market," he said.

"This strong performance was likely influenced by the announcement of last week’s federal budget policy initiatives designed to alleviate perceived housing market imbalances.

"These included allowing first home buyers to save home loan deposits through superannuation accounts, incentives for older down-sizers to sell larger homes and financial penalties for foreign investors that leave investment properties vacant.

"The northern suburbs returned to the Saturday boom-time results typically recorded over the past year to clearly lead the regional results at the weekend.

"The top performer was the Blue Mountains with a 100 percent clearance rate from the single reported auction.

"Next highest was the northern beaches with 96.2 percent followed by the lower north 90.6 percent, south 83.8 percent, inner west 81.3 percent (and the highest number of sales at 65), north west 80.0 percent, upper north shore 78.7 percent, city and east 76.1 percent, Canterbury Bankstown 68.8 percent, central coast 66.7 percent, west 65.8 percent and south west with a clearance rate of 65.2 percent."

"Melbourne recorded a clearance rate of 78.3 percent at the weekend which was similar to the 78.7 percent recorded the previous weekend but still well ahead of the 73.6 percent recorded over the same weekend last year.

"Auction listings bounced back hard at the weekend with 936 homes scheduled to go under the hammer which was significantly higher than the previous weekend’s 646 listings and also well ahead of the 759 listed over the same weekend last year. Higher auction numbers will continue through the remainder of autumn with over 1100 auctions listed next weekend.

"Melbourne’s booming north recorded another strong result at the weekend with a leading clearance rate of 83.1 percent. Next highest was the inner south with 81.1 percent followed by the inner city 80.5 percent, the west 79.8 percent, the inner east 79.0 percent, the north east 78.0 percent, the south east 73.1 percent and the outer east with an auction clearance rate at the weekend of 71.6 percent."