Consistently strong outcomes from residential property sales in June have demonstrated how strong demand and confidence are in the local property market at the moment.
This year started slowly with buyers and sellers very cautious, concerned about the overall economic environment but this has changed.
In February this year there were 1,369 auctions reported with 1,001 sold resulting in a clearance rate of 73 per cent.
This compares with the month of June when there were 1,669 auctions reported with 1,426 sold resulting a clearance rate 16 per cent better at 85 per cent.
Remarkably not only has demand increased by so too has the number of homes auctioned; normally winter sees less auctions that in late summer and autumn.
This also compares very favourably with the same four weekends in June 2007. In what was the strongest year for residential property sales in a decade there were 2,124 auctions reported with 1,789 sold resulting in a clearance rate of 84 per cent. Whilst there were more auctions in June 2007 than June 2009 the reverse applied for private sales. In June 2007 there were 2,500 private sales reported compared to 2,916 in the comparable four weekends in June 2009.
This means that in terms of the number of homes sold June 2009 has been stronger than June 2007.
There are three main reasons for this, improved affordability due to low interest rates, an increasing population and the assistance for first home buyers.
The residential property market is surprisingly strong at the moment and for it to stay that way for the rest of the year the economy, and critically unemployment needs to remain stable.
