Those who called a property crash got it hopelessly wrong: Pete Wargent

The REIV reported a solid enough 72% auction clearance rate for Melbourne on Saturday.

In Sydney, APM reported an "extraordinary" 81% clearance rate, the third consecutive week in which the 80% barrier has been exceeded.

The activity levels continue to point to an ongoing price boom in the hot sectors of the market in Sydney.

Earlier in the week, APM reported that house prices in Sydney, Perth and Canberra are now at record highs with Melbourne only a shade below its all-time highs, although Brisbane and Adelaide still have a way to go if they are to follow suit.

Perth and Sydney have recorded gains of around 10% since their respective troughs of a little over a year ago and prices have increased reasonably well everywhere except for Adelaide.

But it's Sydney that is the real embarrassment for the chorus of voices predicting a "40% crash" half a decade ago, with prices well above all previous peaks.

Not only did dwelling prices increase by more than 20% as household incomes grew, the price gains actually now appear to be accelerating with properties selling remarkably quickly and a swathe of speculative investment capital flowing into the city.

If you're a follower of the weird obsession with daily house prices, RP Data has Sydney prices up around 5% in less than 50 days, and looks set to report increases of around 2% in July alone at the end of this month.

I'm not sure how those who called a crash so hopelessly wrong will explain that one away.

Pete Wargent holds a range of finance and property qualifications and is the author of Get a Financial Grip – a simple plan for financial freedom.