Australian housing market finding a floor - survey

Housing industry researcher, Australian Property Monitors (APM), said auction clearance rates rose to 50 per cent in June, compared with a low of 35 per cent in struck in January and 42 per cent a year ago.

At the height of Australia's most recent housing boom in mid 2003, national clearance rates were around 70 per cent.

The clearance rate in Sydney, Australia's largest city, rose to 45 per cent from 40 per cent in June 2004, while in Melbourne, the second-largest city, the clearance rate rose to 55 per cent from 46 per cent.

"Our latest leading indicators for the residential housing market in Sydney and Melbourne suggest that the housing market has finally found its floor," said APM Research Director Louis Christopher.

Christopher said there was evidence rents were rising again and wages growth was running at 4 to 5 per cent a year, countering the argument that housing is still overvalued when compared to average income levels and rents.

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