The extraordinary cut in official interest rates to add more fuel to an already hot Sydney housing market: APM's Andrew Wilson
"Expect this week's extraordinary cut in official interest rates - already passed on by most of the banks - to add more fuel to an already hot Sydney housing market," Australian Property Monitors senior economist Dr Andrew Wilson forecasts.
The comments were against the backdrop of Sydney's April auction clearance rate being the third highest recorded for any April over the past decade - ranking behind the property boom periods of 2002 and 2010.
Sydney auctioneer Damien Cooley used the same analogy when he tweeted this morning: "Market is hot people! The rate cut is like throwing petrol on a fire!"
Dr Wilson wrote on APM News that the Sydney housing market had been a standout performer this year.
Last weekend’s Sydney auction clearance rate of 78.1% (with late result notification revision yet to be advised) was well ahead of the 60.5% over the same weekend in 2012.
This weekend Sydney has 363 scheduled auctions, around the same number as the same Saturday last year. Last weekend there were 399 auctions, with the onset of the colder months triggering the gradual reduction in auction numbers.
With 15 auctions, Malvern East is Melbourne's most popular auction suburb this weekend followed by Brighton, Richmond, Hawthorn and Glen Waverley. As a postscript, APM reported on just the two Malvern East auctions by Saturday night's conclusion, both of whoch sold, and therefore some 13 results yet to be tabulated.
April's 66.1% notched up Melbourne's best monthly result since the July 2010 peak of the house price boom.
Property Observer will post the latest auction news over the weekend with a full round-up on Monday.