Interest rate cut to boost spring auctions
The full effects of Tuesday's (October 2) interest rate cut will be evident at residential property auctions taking place around the country this weekend.
With the Reserve Bank of Australia slashing the official cash rate 25 basis points to 3.25 per cent, more home hunters are likely to emerge nationwide - snapping up properties amid favourable economic conditions.
The Melbourne auction market has performed well for the start of the spring, with the trend likely to continue over the next few days.
This weekend 540 auctions will take place across the city, compared to 559 during the same period last year - recording a clearance rate of 51 per cent.
"Auction volumes lift this weekend as the market builds up to the busy run into Christmas," the Real Estate Institute of Victoria said on its website.
"In the past month the market has seen an improved level of demand compared to this time last year and the next few weeks' results will indicate whether it is, as is hoped by estate agents and vendors, a sustained one."
The spring auction season will heat up later this month, with 1,150 auctions expected on the weekend of the October 27 and 28 - indicating renewed confidence in the sector.