Interest Rate Cuts Spark Buyer Enthusiasm

There's nothing like news of an interest rate cut to spark property buyer enthusiasm and auctioneers saw that on Saturday.

 

"We saw fast, strong, immediate and confident bidding,” Sydney auctioneer Damian Cooley said, who achieved a 71 per cent clearance rate with 22 of 31 properties selling.

 

The stronger bidding followed news that banks would pass on the full 0.25 per cent cut to customers. ANZ went further lowering their rate 0.27 per cent.

 

Inner west agent Julie Hatch of Belle Property had 17 registered bidders, with five competing for 208 Trafalgar Street, Annandale. “The starting bid of $900,000 was actually above the reserve which was $890,000,” she said. The property sold for $952,000.

 

On the lower north shore, a house at 56 William Edward Street, Longueville sold for $1,820,000 through Cobden & Hayson, which was $220,000 over reserve, with eight registered bidders.

 

The suburb with the highest number of auctions was Lidcombe, where Elders Lidcombe principal Sang Tat sold five of his six auctions. “The interest rate cut definitely helped,” he said.

 

With 265 of the 356 results reported to Australian Property Monitors, the weekend auction clearance rate was 70.7 per cent. It followed last week's 78.1 per cent, which was the highest for three years.

 

APM senior economist Dr Andrew Wilson said although the weekend auction clearance rate was slightly weaker than the previous week, it was still 10 percentage points higher than the same weekend last year.

 

"Expect the fall in rates to work its way through the market over the following weeks," he said.