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Property market still below peak

Sydney and Melbourne's property markets are performing well but still below their peak.

Despite rising house prices and high clearance rates during weekend auctions, the Australian property market still has some way to go before it reaches its previous peak.

Last weekend, auctions in Sydney saw a clearance rate of 81.4 per cent according to Australian Property Monitors (APM), the highest result seen in over a decade. Because of these strong auction figures, property prices have been pushed up.

While a similar trend of strong results is seen in Melbourne, both markets are not yet tracking at their highest level seen.

APM senior economist Andrew Wilson told the Australian: "The market there is tracking around four per cent below its previous price peak."

Part of the reason for this could be that buyers and sellers are reluctant to act with a general election in the pipelines. Confusion has been added to the fact that people are uncertain about the date of the election. The previous prime minister Julia Gillard set it for September 14th but she has since been ousted by Kevin Rudd.

Posted by Ravin Chatlani

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