SellingThe Reserve Bank of Australia and the Australian Prudential Regulation Authority will need to "act soon" if strong auction clearance rates continue, SQM Research managing director Louis Christopher says.
The rise in volume of properties for sale – expected during this time of the year during the spring selling season – has not eventuated, and is likely to add more pressure to property prices, he added.
Sydney auctions cleared at 84.4 per cent on the weekend, according to Corelogic, and APM released similar numbers for the week.
According to Corelogic, over the first four weeks of spring this year, auction clearance rates have been consistently higher than corresponding weeks last year and auction volumes were 20 per cent lower.
"Seasonally you normally get higher listings now and then clearance rates start to fall off ... but we are not getting the normal seasonal rise in listings for this spring season," Mr Christopher said.
"It's creating angst among buyers, particularly those ones who sold in July or August and they are really caught out right now. I think volumes could still rise in October, but to be clear, there will be less volume overall."