Rate cuts not flowing through to home sales

Auction clearances were up slightly on the weekend of the 6-7 December, but still well down on the same weekend last year. In Melbourne, 48 per cent of 697 properties sold under the hammer, a slight improvement on the previous week, but down from 78 per cent last year. In Sydney, 42 per cent of 323 properties sold, up from 42 per cent the week before and down from 60 per cent a year ago. Only 35 homes were put up for auction for a clearance rate of 23 per cent. In Adelaide 10 of 25 homes put up for auction sold. House prices remain grossly inflated said Liam O'Hara, economist with Australian Property Monitors. Last week's one per cent interest rate cut had not yet made a difference to the real estate market said Enzo Raimondo, chief executive of the Real Estate Institute of Victoria.

Source: The Australian Financial Review