PHOTO: McGrath

The listing volumes of homes for sale remained subdued, which restricted the potential for any big lift in earnings at the publicly listed McGrath estate agency.

And its chief executive Geoff Lucas cautioned that the recent major capital city price jump was likely not sustainable on an annualised basis.

While the three months to October saw property prices in the Sydney and Melbourne metropolitan markets increase by 5 per cent and 5.5 per cent respectively, Lucas advised he did “not expect this rate of growth to continue.”

He told shareholders the business was recovering.

“While recent above reserve prices, increased auction clearance rates and buyer engagement levels have all improved sentiment, all of which might improve listing levels, we do not see evidence yet of any sustainable improvement,” he said.