Melbourne auction clearance rate hits 60 per cent despite RBA rate rise

A Reserve Bank interest-rate hike has been followed by one of the strongest preliminary clearance rates in weeks from Melbourne’s auction market. Melbourne’s auction market yesterday battled through the aftermath of the nation’s fifth interest-rate hike this year to a surprisingly strong 60 per cent clearance rate. It’s an unexpected middle finger to Reserve Bank governor Michelle Bullock who warned that the nation would feel poorer and face recession like conditions in the year ahead when she announced a 0.25 per cent rate hike on Tuesday. It’s even more surprising given that hike is also expected to wipe more than $11,000 from an average earner’s borrowing power for a single income, and closer to $22,500 for a dual-income household. RELATED: Melbourne loses auction crown to Sydney as Super Saturdays slide Home approvals fall 32,000 short of national target amid housing crisis The Block Mount Eliza delivered millions but Channel 9 must fix major flaws With similar cuts from the previous four increases earlier in the year, Canstar has estimated borrowing power for a single-income household at an average $108,650 is now down 9 per cent — or about $47,000 since the first rate rise in...