Recent auction activity indicates the level of demand remains strong and properties  priced in accordance with the current conditions are receiving plenty of buyer interest.

Volumes have been gently increasing yet even so, clearance rates remain above 70%. The reasons people are selling are many and varied.

Whether it’s investors selling as the attractiveness of residential property as an  investment is diminished, or people selling due to mortgage stress or before this stress  becomes a reality, some of the recent activity in the market is being driven by  consumers in difficult circumstances.

Unfortunately, the number of downsizers listing their properties remains constrained by  the huge impost of stamp duty, which for many rules out a move to a more suitable  home.

All the while, and even with the potential for further rate rises, prices continue to creep  upwards. 

Spring will soon be upon us, so it will be interesting to see if the current price trajectory  will be maintained with a further increase in listings.

Presumably, the systemic shortage of housing and the stalled supply response, despite  the widespread recognition of the urgent need to build more homes, will continue to be  the key drivers in keeping prices buoyant.