Homebuyers have shrugged off concerns about global financial markets to push weekend clearance rates close to levels not seen since the housing boom of 2003.
And this month's interest rate rise appears to have had little impact on the auction market, according to Michael McNamara, general manager of researcher Australian Property Monitors.
Nationwide
On Saturday, 69 per cent of Sydney homes offered at auction were sold, while in Adelaide the clearance rate was 80.4 per cent.
In Melbourne, agents reported a clearance rate of 84 per cent. One inner city Melbourne agency, Kay & Burton, notched up the best one-day result in its history, achieving almost $29 million from seven properties. The top sale was one of Toorak's oldest homes at 14 Maple Grove that went under the hammer for $9.11 million.
In Brisbane, agents said the market was hot, with one property in riverside Woolloongabba selling for more than $1 million.
But Mr McNamara sounded a note of caution, saying there may be a delayed reaction to the interest rate rise with some pain felt down the track in lower to middle income families.
"Some decision making may be delayed on speculation of another rate rise", he said.
Property market 'safe'
Frank Gelber, chief economist for BIS Shrapnel, predicted property would ride out the current stock market turmoil.
He said investors, and even home owners, had little to worry about because property wouldn't suffer.
"Don't panic is my advice," Mr Gelber told The Australian. "It's going to mean very little for property."
In fact, Mr Gelber said property might benefit from the stock market chaos because money that would otherwise go into shares would be invested in property. At a residential level, that would help to boost sluggish housing markets in parts of Australia.Source: The Australian
