Saturday's (14th April) auction market in Sydney reported an impressive result that surpassed the expectations of any of the analysts and those who attended.
In fact, new data has emerged confirming that investors are now re-entering the market, reports Domain.
They are keen to get back into the market before the potential changes happen regarding negative gearing.
After the weekend, the clearance rate for Sydney was recorded at 80.3 per cent, which is the highest the city has seen since July 18th in 2015, when it hit 83.1 per cent.
This rate is still impressive, considering last year's surge was largely as a result of the house prices boom, which peaked during the the same auction weekend in 2015.
It was considerably higher than the previous weekend, which managed a rate of 71.6 per cent and it's also above the average that has been collated for this year so far, which comes at 73.2 per cent.
Property investors and real estate analysts hadn't been expecting such an upshot in the market however, making the high rate on Saturday a complete surprise.
It's likely that it was affected by the cut in mortgage rates that most banks announced over the last week. Significantly, this was the first time they have announced a cut in rates in nearly a year.
There were a total of 506 houses brought to auction last weekend and it was the properties with higher prices in the inner-suburbs of Sydney that showed the strongest results.
Again, this is probably due to the cuts in mortgages, meaning that people are able to afford higher-priced properties. Similarly, it allows investors to buy up more homes for the purpose of resale and tourism accommodation.
The best performance came from the lower north shore, which reached a clearance rate of 93.1 per cent. It was closely followed by Canterbury Bankstown with 90 cent and the upper north shore, which recorded 89.8 per cent.
