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Housing market firms after election

Depositphotos_78017470_s-2015.jpgWith the federal election behind it, the housing market has shifted back into overdrive.

The number of auctions in the mainland state capitals jumped to 1,365 last week, according to housing market analytics firm CoreLogic.

That was up sharply from a below-par 841 the previous week, which included the day of the election.

Despite the surge in auction numbers, the proportion of those that end with a sale - the auction clearance rate - rose to an estimated 72.0 per cent, up from 67.0 per cent the week before.

Taking into account both the higher number of auctions and the greater clearance rate, the number of completed sales was up by about 74 per cent.

And prices held up as well.

Only Brisbane/Gold Coast recorded a drop, of just 0.2 per cent, in the week, while Sydney prices were steady and there were rises in Melbourne (0.2 per cent), Adelaide (0.8 per cent) and Perth (0.1 per cent).

The resilience may have been encouraged by expectations that negative gearing of investment properties will still be available as a tax-reduction strategy.

Or it may be no more than the usual response of any market to the elimination of a source of uncertainty.

Trends over the coming few months will show which effect was more important.

Annual growth across the five capitals came in at 7.2 per cent last week, from 10.0 per cent a year earlier and 11.1 per cent a year before that.

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