Solid month for Canberra property market

The Canberra housing market continues to produce encouraging results as restored buyer and seller confidence consolidates in the local market.

According to the latest Domain National Home Auction Market Report, Canberra recorded another solid clearance rate over June at 63.2 per cent.  Although down marginally from the 64.2 per cent recorded over May, the June result was nonetheless well ahead of the 55.4 per cent recorded last June.  Canberra’s June clearance rate was the highest recorded by that city for that month since 2009.

Canberra averaged 35 listings per Saturday over June, down from the 48 averaged over May but well ahead of the 23 averaged over June 2014. 

The Canberra median home auction price recorded over June was $650,000, a fall of 2.6 per cent over the May result of $667,500 but an increase of 2.4 per cent over the same month last year.

Although auction activity in Canberra moderated marginally over June, underlying activity remains solid with the June result reflecting the impact of the typically quieter, mid-year winter housing market.

Next week the Reserve Bank meets for its first time in the new financial year to determine interest-rate direction for July.  The national unemployment rate reducing over consecutive months is likely to influence the bank to leave rates at the record low 2 per cent over the month.

The prospect of growing global financial uncertainty reflecting the stalled Eurozone bailout of the Greek sovereign debt crisis may also encourage the bank to  maintain its wait and see approach of recent months.

Dr Andrew Wilson is Domain Group Senior Economist
Twitter@DocAndrewWilson
The Property Show expert 2UE Saturdays 12.30-1pm.