The property market has rebounded stronger than expected, with experts predicting property prices could reach the highs of 2017 as early as the middle of next year.
With the spring racing carnival in full swing, interest usually turns to the race that stops a nation. Adelaide bucked the trend by achieving a personal best of 142 auctions and a clearance rate of 64.94% for the week ending 03/11/2019, an increase of almost 15% compared to the same time last year. Traditionally clearance rates in the spring season fall to the high 50 percent range by November, last year’s downturn saw clearance rates fall to as low as 40 percent.
The property market has been recovering since the federal election, but the rate of recovery has shocked many experts. The easing of lending restrictions by APRA (Australian Prudential Regulation Authority), interest rate cuts by the RBA (Reserve Bank of Australia) has seen mortgage approvals increase and buyer confidence return.
With stock levels still lower than in previous years, homes available on the market hasn’t yet met buyer demand. The sentiment from buyers is that they are eager to buy and willing to stretch their budget for the right property.
CoreLogic’s Home Value Index for October showed another month of recovery with an aggregated rise of 1.4% percent in property value. Nationally the auction clearance rate was 72.2 percent, further evidence that good properties are selling well in this improved market.