Doomsday predictions of a massive fall in property prices have been shot down. Picture: Darren England.

Auction clearance rates have returned to the high levels experienced last year with last week marking the fourth consecutive week of the combined capital city clearance rate being above the 70 per cent mark.

Nationally the preliminary clearance rate was 72.4 per cent last week.

Capital city auction results haven’t recorded a four week period where the clearance rate was consistently higher than 70 per cent since early September last year.

UNDERPERFORMING MARKETS RISE TO THE TOP

McGrath chief executive John McGrath said the recent clearance rate figures were a sign that predictions of an imminent price collapse were off the mark.

Australian analysts and industry players have jumped on claims made by economist Jonathan Tepper on the recent 60 Minutes television program that values in Australia could fall between 30 per cent and 50 per cent.

CoreLogic RP Data research director Tim Lawless said this week the latest market indicators were that there was no sharp correction ahead.

Melbourne’s clearance rate was 75 per cent, Sydney was 73.3 per cent, Adelaide 72.7 per cent and Brisbane 58.3 per cent.

John McGrath said buyers have heard all the dire predictions before and just wanted to get in with buyer property. Picture: Tara Croser.Source:News Corp Australia

Mr McGrath said Sydney’s auction clearance rate last week showed that buyers were not scared off by the big crash predictions.

“I think weekend buyers essentially reacted as I did, they’ve heard it all before,” he said.

“It seems every year an offshore expert takes a look at our property market and decides it’s headed for Armageddon.

“It ignores the high level of prudential oversight applied by the banks in Australia which are amongst the best in the world and the fact that we do not have questionable financial products such as the non-recourse loans that allowed irresponsible lending practices in America.’’

Mr McGrath said the Australian market had been under supplied for many years and that had been one of the key drivers in property price increases.

“Now, thankfully we are beginning to see supply meet demand, and we can expect a slowing down in the rate of growth. Not a bust but a slowdown. This is something that had to happen if we want a sustainable real estate market and to see the next generation of home buyers have a chance of owning property.”