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“It is price sensitive. The properties that are priced competitively and which offer value, are being snapped up by the buyers. The ones that are not priced competitively are getting passed in and that is reflected in the clearance rates.” Consistent auction clearance rates above 80 per cent signal a boom market. Some market analysts say it’s a sellers’ market whenever clearance rates stay above 70 per cent, although others claim anything above 65 per cent swings the market pendulum in sellers’ favour. Last year’s spring selling season was energised by the Reserve Bank’s decision to cut official interest rates in August 2016. That was the last time the central bank cut official rates, and with the residential market now lacking the stimulus of lower interest rates and experiencing fading clearance rates, this spring’s sales scene is on track to offer more opportunities to buyers than last year’s spring market. Dr Wilson said he didn’t expect 80 per cent clearance rates this spring but Melbourne would still be a sellers’ market. “The outer suburban markets are certainly very strong,” he said. “The market is more balanced the closer in you get to the city.” Buyers’ advocate Frank Valentic, from Advantage Property Consulting, said there were fewer runaway sales results in middle ring suburbs in Melbourne’s north and west on Saturday.
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