Sydney’s late winter weekend home auction market continues to strengthen recording its third consecutive clearance rate above 80 percent at the weekend. The strong 83.4 percent rate was also the highest recorded for 6 months and reflects a market with high levels of competition for property.
The Sydney auction market is on the rise with the four-weekend average clearance rising to 81.3 percent compared to 76.2 percent over the previous four-weekend period.
Next weekend is the last Saturday auction day before spring begins with the market primed with confidence as listings inevitably rise through to the end of the year.
Auction numbers have been steady over recent weekends reflecting the typically quieter late winter selling season in Sydney. This weekend 440 auctions were scheduled in Sydney compared to the previous weekend’s 434 and the 412 listed over the same weekend last year.
Not surprisingly a number of Sydney’s suburban regions produced stunning auction clearance rates at the weekend. The best performer was the city and east with an extraordinary 95.1 percent clearance rate with only 2 of the 41 properties reported failing to sell. This result was closely followed by the south west with 91.7 percent, the lower north with 90.9 percent, the north west 88.9 percent, the west 87 percent, the inner west 84.2 percent and the northern beaches with a clearance rate of 84 percent.
An encouraging result also for Sydney’s prestige market at the weekend with 14 sales reported above $2 million.
Standout sales results in the city and east included a 5 bedroom home at 12 Attunga Street Woollahra also sold for $2,800,000 by Sotheby's Realty, a 3 bedroom home at 43 Regent Street Paddington sold for $2,650,000 by McGrath Estate Agents, a 4 bedroom home at 90 Blair Street North Bondi sold by Phillips Pantzer Donnelley for $2,400,000 and a 3 bedroom home at 18 Hopetoun Street Paddington sold for $2,100,000 by McGrath Estate Agents.
The most expensive property reported sold at auction at the weekend was a 5 bedroom home at 73 O’Sullivan Road Rose Bay sold for $4,390,000 by Sotheby's Realty. The most affordable property reported sold at the weekend was a 1 bedroom unit at 177/450 Pacific Highway Lane Cove North sold for $273,000 by McGrath Neutral Bay.
Investor activity remains a significant force in the Sydney housing market with the ABS reporting another strong result over June. Loans to the value of $5.11 billion were approved to NSW residential investors over the month which, although slightly down on the $5.18 billion approved over May was nonetheless the second highest value approved on record. Nearly $27 billion in housing loans for investors has been approved in NSW over the first half of this year.
First home buyer numbers however remain at low levels with the number of NSW loans approved to this group falling by 7 percent over June. First home buyers account for just 4.2 percent of total NSW housing loan activity which is just above the record low of 4.1 percent recorded over September 2013.
Dr Andrew Wilson is senior economist for the Domain Group Follow @DocAndrewWilson
The Property Show expert 2UE Saturdays 12.30-1pm
Results at http://www.homepriceguide.com.au/