Sydney’s home auction market consolidated last week’s revival by recording its second consecutive weekend clearance rate above 77 percent. This weekend’s 77.3 percent rate was similar to last weekend’s 77.7 percent rate that followed a month of results that had indicated a falling trend in buyer activity.
Activity in the Sydney auction market had clearly been tracking downwards over June and into July with clearance rates averaging below 75 percent. This is well below the boom-time results that had averaged over 80 percent earlier in the year.
404 homes were auctioned this weekend in Sydney and although down slightly from the 410 conducted last weekend was nonetheless 96 more than the 307 homes auctioned over the same weekend last year. This weekend’s auction numbers will likely prove to be the low point for auction listings this winter with numbers now set to rise through to spring with the July school holiday break now over.
The northern beaches recorded another stunning clearance rate at the weekend as the strong revival in buyer activity in that region continues. It clearly led all the regions with a 94.7 percent result and was followed by the inner west with 87.8 percent, the city and east 85.7 percent the south with 84.1 percent and the lower north with 81.5 percent. As these regional results indicate, Sydney’s prestige and inner city markets continue to produce strong mid-winter results at auction.
Standout sales results from the northern beaches at the weekend included a 4 bedroom home at 7 Hill Street Queenscliff sold for $2,450,000 by Cunninghams Property, a 3 bedroom home at 13 Salisbury Square Seaforth sold by Raine and Horne Neutral Bay for $2,200,000, a 3 bedroom unit at 501/95 West Esplanade Manly sold for $2,150,000 by Bergelin Estate Agents and a 3 bedroom home at 43 Surfers Parade Freshwater sold by Clarke and Humel Property for $1,865,000.
The most expensive property reported sold at auction at the weekend was a 6 bedroom home at 9 Mount Street Strathfield sold for $3,825,000 by Georges Ellis and Co. The most affordable property reported sold at the weekend was a 3 bedroom home at 153 Pacific Highway Charmhaven sold for $280,000 by Raine and Horne Charmhaven.
The Sydney auction market continued its revival at the weekend reporting back-to-back 77 percent plus clearance rates for first time since May. This indicates that there is plenty of life left in the mid-winter market that clearly remains positive for sellers with house prices set to continue to rise.
Investors remain a key ingredient of the Sydney housing market with the latest ABS home loan data revealing another extraordinary month for investor activity in New South Wales. The value of loans approved for residential investment soared over May to a new monthly record of $5.18 billion – the first time the $5 billion mark has been exceeded over a month in New South Wales. The value of investor finance approved is an extraordinary 43 percent higher over the first 5 months of this year compared to the same period a year ago.
Investor activity now accounts for 57 percent of overall home sales finance activity in New South Wales and will also continue to fuel prices growth in the Sydney market.
Dr Andrew Wilson is Domain Group Senior Economist Twitter@DocAndrewWilson
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