Hi,
Domain’s preliminary Melbourne auction clearance rate for the weekend has come in at 71%. 524 auctions have been reported, 372 selling, 51 withdrawn and 101 passing in. The clearance rate has been consistently in the low 70%’s for a number of weeks now. In comparison, the clearance rate was 57% for the same weekend last year.
The June quarter inflation data that the RBA was waiting for has now been released with inflation dropping again from 2.4 to 2.1 per cent. The RBA prefer to look at ‘trimmed mean’ inflation which dropped from 2.9 to 2.7 per cent. Unemployment has risen from 4.1 to 4.3 per cent. These results make it highly likely that there will be a interest rate cut when the RBA board meet next week.
We have consistently seen an immediate improvement in the property market after each interest rate has occurred, and I don’t believe this one will be any different. The good news is that we are seeing ‘slow and steady’ property price rises and not price growth that is unsustainable.
School is back, the sun is shining and the weekend’s open for inspections were busy. Confidence is back in Melbourne and we are expecting a busy second half of the year with stock levels rising and buyers willing to transact.
Have a great week.
Kim Easterbrook – Managing Director
