Optimism has returned to the Sydney auction market following last weekend’s surprise federal election results, with a big weekend of sales and renewed interest from buyers.
On Saturday, 583 auctions were held across the city, with a clearance rate of 62 per cent.
Domain economist Trent Wiltshire said the Coalition’s win coupled with the Reserve Bank’s hints of interest rate cuts and the loosening of lending criteria – which will enable people to borrow more – added to a more buoyant weekend.
“These factors likely contributed to the preliminary clearance rate we saw yesterday, which will be revised down to the high 50s,” Mr Wiltshire said.
“It is higher than it has been for the past six months, which is a tentative sign that the market may be close to bottoming out.”
The results on the weekend had some agents jumping for joy.
“We’re back, we’re back. The market’s back,” said an excited LJ Hooker auctioneer Ben Mitchell after his weekend of more than 20 auctions.
This included a record sale price for 124 Lennox Street, Newtown. The two-bedroom semi-detached home needed a full renovation, but still sold for $1.4 million – a record for that type of property in the area. A young couple made the winning bid.
“The standout for me was the average number of bidders were between seven and 10, where there was an average of one before,” Mitchell said.
“[I know] one hot day doesn’t make the summer, but there’s a good feeling out there,” he said.
It was a sentiment shared by many agents who reported bigger crowds and a higher number of registered bidders at the weekend.
A crowd of about 50 turned up for the auction of 33 MacKenzie Street, Leichhardt.
There were eight registered bidders with four competing for the three-bedroom, two-bathroom terrace that sold for $1.58 million, $80,000 above the reserve.
The buyers were a young family from nearby Camperdown.
Selling agent Belle Property Annandale’s Michael Hallit said the property attracted investors, professional couples and young families.
“Now that the federal election is over, we have seen good engagement and activity around our current listings and this result definitely indicates that buyer confidence is on the way up,” Hallit said.
Three other successful auctions at 15 St Marys Street, Camperdown(which sold for $1.685 million), 302/11-23 Gordon Street, Marrickville(which sold for $1.25 million), and 311/1A Clement Place, Rushcutters Bay (which sold for $2.415 million) also had a larger number of registered bidders.
Ray White New South Wales Blue auctioneer Jason Andrew, who auctioned all three properties, said the mood had changed with buyers since the election.
“I honestly haven’t seen anything like it in my career – the contrast to two weeks ago is incredible,” Andrew said.
“You could feel the buzz and the confidence on the ground as bidders competed against each other for all three properties.
“The crowd numbers across all three auctions was great to see as people seem to be regaining their property appetite,” he said.
In Rydalmere, seven bidders with an appetite to buy registered for a rare sale at 5 Ungarra Street, on Saturday. The five-bedroom, two-bathroom home, which also had a two-bedroom granny flat was in a much-desired street in the outer north-western suburbs.
Auctioneer Rocky Bartolotto, who sold on behalf of Professionals Ermington, said it was the first sale in the street in 15 years.
The property sold for $1,125,000 – $300,000 over the reserve. Bartolotto said there were 42 bids, with bidding opening at $700,000.
“The opening bidder was the final bidder,” he said. “Despite the under-bidder trying to outbid him at $1.06 million to bid $1.1 million. It wasn’t enough to knock him out. He went on to buy the property.”
The vendor was selling to downsize, he said.
article by domain.com.au