Keenness of buyers now inspiring more sellers to list: Shane Oliver

The keenness of buyers was now inspiring more sellers to list, according to AMP Capital chief economist Shane Oliver.

Buyer sentiment had improved significantly since May, he noted after another auction weekend with an 80 per cent plus success rate in Sydney.

“Sentiment has turned around dramatically as things were going down and it was feeding on itself on the way down.

“Now it’s turned, it’s feeding on itself on the way up.

Oliver said the trigger was the combination of the election outcome, which removed the threats to negative gearing and the CGT discount, the rate cuts and the removal of the 7 per cent mortgage rate test.

“This all now appears to be encouraging a gradual pick up in listings which along with news of a recovery is in turn is bringing more buyers back into the market.”

Oliver suggested some of the buying was pent-up demand, “after buyers went on strike last year”.

He thinks tighter credit, slower economic conditions and a lot of units to hit the market will constrain prices relative to a few years ago.

“I expect some slowing after the initial bounce, but right now it looks like its got a bit further to go as sentiment continues to improve,” he told The Daily Telegraph.

There were 2,017 homes taken to auction across the combined capital cities over the past week, up from 1,324 over the previous week, suggesting the spring auction selling season was finally gaining some listing momentum. 

The Corelogic preliminary results showed a 77 per cent success rate, up after last week’s interrupted long weekend saw a final clearance rate at 67 percent. 

"Although the clearance rate will revise lower as final results are collected, it will likely hold around the low-mid 70 per cent range," Kevin Brogan, the CoreLogic auction analyst said.

The number of listings is finally up on the same time last year, when 1,851 auctions were held across the combined capitals, then recording a 47 per cent clearance rate.

Property economist Dr Andrew Wilson said the Sydney weekend home auction market bounced back strongly following the previous weekend's holiday break "with a booming clearance rate despite a surge in listings."

SQM property commentator Louis Christopher observed "ongoing strong auction results."

The dearest sale was in Melbourne where 7 Ruby Street, Hawthorn (top and below) fetched $5,175,000.

There had been price guidance of $4.75 million to $5.225 million.

The 596 sqm house was designed by Steve Domoney Architecture.

The property last sold in 2010 at $4.4 million.

The marketing by Little Real Estate agent Jeffrey Wilson described the three level home as "unrivalled luxury."

It was "magnificently modern and dramatically daring."

Sydney's top house sale was in Mosman.

The $5,025,000 sale through Di Jones Real Estate was a five bedroom 1930s home at 89 Bay Street (below).

With Middle Harbour views, the home last traded at $3.2 million in 2012.

There was a $4.7 million sale in Brisbane when the riverfront home at 23 King Arthur Terrace, Tennyson (below) was sold pre-auction through estate agent Jason Adcock.

It last sold at $3.81 million in 2015.

The north-facing five bedroom, four bathroom family home has views capturing the river, golf course and city skyline from its 1154 sqm holding with 20m of river frontage.

Melbourne had the weekend's cheapest offering when $225,000 was paid for the one bedroom unit at 8/90 Roberts Street, West Footscray (below).

There had been $200,000 to $220,000 price guidance by Jas Stephens Real Estate.

It last sold in 2006 at $115,000.

It was offered as a $190 a week rental in 2016.

Across the smaller auction markets, Perth saw lower auction volumes week-on-week while Adelaide and Canberra, both with a 78 percent success rate, saw an increase in the number of homes taken to auction over the week.

There was a 59 percent clearance rate in Brisbane where sales included a $2,085,000 Bulimba result through LJ Hooker AVNU in conjunction with Ray White agent Nicholas Given.

The 2012-built contemporary 32 Princess Street five bedroom home sold for $2,085,000. It potentially could have gone higher.

“There were lots of people desperate to buy this home but didn’t have their finances in place,” Mr Given said.

It last sold at $1.8 million in 2013.

"Displaying a cutting-edge architectural aesthetic, the home was designed with an emphasis on gourmet open plan indoor/outdoor poolside entertaining," Tanya Douglas at AVNU said.