Rate cut raises little more than a ripple across market

Since the Melbourne Cup Day rate cut first home buyers have battled it out with contending buyers at some auctions in Melbourne across the weekend, pushing the auction clearance rate for properties under $500,000 to above 50%. Amongst prospective buyers first home buyers were reported to be the most active with recent rate cuts and increased government grants starting to renew confidence levels.  Despite recent falling house prices some houses reached last year’s prices according to JPP Buyer Advocates' Catherine Cashmore, with a Murrumbeena unit in Melbourne going for $22,500 over the advertised price. With strong clearance rates for first home buyer properties over the weekend, first home buyers may have a battle on their hands to get the bargain they want as they compete with each other to take advantage of the rate cuts and government grants.

Read full article