The Sydney home auction market surged at the weekend, with clearance rates now approaching record levels in a spring market that is proving irresistible to buyers.
Sydney recorded a remarkable clearance rate of 84.4 per cent at the weekend, which was well ahead of the previous weekend’s 80 per cent and light years away from the 64.4 per cent over the same weekend last year.
The Sydney market is now tracking at its highest since the peak of the record boom-time results reported over autumn last year.
Continued slim pickings for buyers are contributing to higher clearance rates, with auction numbers falling again at the weekend. Just 628 auctions were listed on Saturday, which was down on the 674 auctioned the previous weekend and well below the 796 listed over the same weekend last year.
However, there is some relief for buyers next weekend, with nearly 800 homes expected to go under the hammer in Sydney.
Most of Sydney’s suburban regions reported strong results at the weekend in a relatively even performance, although the inner-suburban higher-priced suburbs continue to lead with exceptionally high clearance rates.
The lower north was the top performer yet again, with a clearance rate of 92.5 per cent, followed by the city and east with 91.8 per cent, the inner west with 88.6 per cent and the highest sales at 70, the upper north shore with 85 per cent, the northern beaches with 84.2 per cent, the south with 81.3 per cent, the south-west with 80 per cent – a significant improvement on last weekend’s result, Canterbury Bankstown with 78.8 per cent, the west with 78.1 per cent, the north-west with 77.8 per cent and the central coast with 68.8 per cent.
- a five-bedroom home at 11 Collingwood Avenue, Cabarita, sold by Raine and Horne Concord Project for $5,413,000;
- a four-bedroom unit at 1/2a Wolseley Street, Drummoyne, sold for $4.3 million by Warwick Williams Real Estate;
- a five-bedroom home at 8 Malacoota Road, Northbridge, sold for $4,265,000 by McGrath Northbridge;
- a five-bedroom home at 47 St Thomas Street, Bronte, sold by Richardson and Wrench Double Bay for $3.85 million.
The most expensive property reported sold at auction on the weekend was a six-bedroom home at 72 Champion Road, Tennyson Point, which sold for $8.3 million by Ward Partners. The most affordable property reported sold at the weekend was a two-bedroom home at 9 Murrawal Road, Wyongah, which sold for $322,000 by Raine and Horne Wyong.
Sydney recorded a median auction price of $1.21 million on Saturday, which was lower than the $1,222,500 recorded the previous weekend. Saturday’s median was 26.4 per cent higher than the $957,500 recorded over the same weekend last year. A total of $467.6 million was reported sold at auction in Sydney at the weekend.
Strong auction market activity is predictably translating to higher prices, which will be welcomed by Sydney home owners. Potential first home buyers, however, will not welcome higher prices, which will act to offset the benefits of current record low interest rates and a highly competitive lending environment.
The latest Australian Bureau of Statistics data reports the number of loans to NSW first home buyers increased marginally by 0.7 per cent over August to 1347 – still the second-lowest monthly result since January. Lending to local first home buyers has now declined significantly by 7.5 per cent over the first eight months of this year compared to the same period last year.
The average first home buyer loan reported over August was $365,900 – a steep increase of 4 per cent over the month and the highest result for the year so far.
First home buyer lending activity in NSW over August accounted for just 4.8 per cent of all residential lending in the state and remains at near record low levels.
Article from Domain.com.au
http://www.domain.com.au/news/sydney-property-auction-market-records-spring-surge-20161023-gs8iq6/