Spring auction market off to a flying start | Dr. Andrew WIlson

The spring auction season was off to a flying start with strong results in both Sydney and Melbourne.

Here’s what happened in our 2 big auction markets over last weekend:

Sydney

Sydney’s spring auction market was off to a flying start at the weekend recording a strong 82.7 percent clearance rate.

The weekends result was the fifth consecutive rate recorded above 80 percent and reflects a market that has clearly risen over winter.

The Sydney market has recorded its best-ever auction results for the month of August with 2660 listings and 1925 sales.

The next best August performance was last year when the market hosted 2405 auctions for 1815 salesSydney property investment

Sydney’s four-weekend average clearance has surged to 82.5 percent compared to 78.5 percent over the previous four-weekend period.

Auction numbers in Sydney have risen steadily over recent weekends although the 522 auctions scheduled at weekend was lower than the previous weekend’s 583 auctions but well ahead of the 212 auctions conducted over the same weekend last year which was however distracted by the federal election.

The inner west reported the most number of sales at the weekend with 61 and the highest clearance rate of all the suburban regions with an 89.7 percent result.

The inner west was closely followed by the north west with 87.5 percent, the lower north 87 percent, Canterbury Bankstown 84.8 percent, the west 84.6 percent, the city and east 82.8 percent, and the upper north shore with a clearance rate at the weekend of 81.5 percent.

The first day of the spring autumn market predictably produced another strong result for prestige property with 21 reported sales at or above $2 million – just down on last weekend’s 22 sales result.

Standout auction sales results in the inner west at the weekend included a 5 bedroom home at 29 Wakeford Road Strathfield sold by Devine Real Estate for $3,410,000, a 3 bedroom home at 17 Cotswold Road Strathfield sold for $2,480,000 also by Devine Real Estate, a 4 bedroom home at 17 Terry Street Balmain sold by Belle Property Balmain for $2,175,000 and a 6 bedroom home at 8 Curtin Avenue Abbotsford sold for $2,147,000 by Begetis Real Estate.

The most expensive property reported sold at auction at the weekend was a 4 bedroom home at 16 Eurella Street Burwood sold for $4,460,000 by Raine and Horne Burwood.

The most affordable property reported sold at the weekend was a 3 bedroom home at 14 Mikkelsen Avenue Tregear sold for $370,000 by Laing and Simmons Mount Druitt.

Low interest rates have been a key driver of housing markets activity over the past year. The Reserve Bank met last week and although economic indicators remain mixed the Bank left rates on hold for the 13th consecutive month – the longest steady sequence since 2003.

Although rates are set to remain on hold over the near-term, a weakening economy – particularly rising unemployment – together with a stubbornly high dollar will continue to put a downward bias on potential interest rate outcomes.

Melbourne

Melbourne’s spring auction market commenced on high at the weekend with a strong clearance rate recorded of 79.4 percent. This was the highest weekend rate reported this year and the highest since the pre-Grand Final super Saturday of September 21st last year.melbourne

This weekend’s clearance rate built on last weekend’s 77.7 percent result and was well ahead of 76.6 percent recorded over the same weekend last year

The Melbourne auction market continues to strengthen with the current four weekend average at 77.0 percent compared to the previous four weekend result of 73.9 percent.

Higher clearance rates over the past month have been achieved despite the usual rise of listings over late winter and into spring.

Although the 715 auctions scheduled last weekend was lower than the previous weekend’s 770 auctions it was well ahead of the 422 auctions conducted over the same weekend last year which was distracted by the federal election

Although the headline rate indicates a strengthening Melbourne market, a closer look at the regional data indicates that Melbourne’s eastern suburbs remain the driving force behind market energy -as they largely have been over the past 18 months.

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The inner east not only reported the most number of sales at the weekend with 99, but also the highest clearance rate with an exceptional 89.2 percent result.

Unsurprisingly next best was the outer east with a strong clearance rate of 85.2 percent with 69 reported sales followed by the inner city with 79.3 percent, the north east 79.2 percent, the north 77.3 percent and the inner south with a clearance rate at the weekend of 74.7 percent.

Notable sales in the inner east reported at the weekend included a 5 bedroom home at 66 Alexandra Avenue Canterbury sold for $3,020,000 by Marshall White, a 4 bedroom home at 1b Lingwell Road Hawthorn East sold by Noel Jones for $2,610,000, another 4 bedroom home at 24 Kingsley Street Camberwell sold for $2,380,000 by Jellis Craig and a 3 bedroom home at 86 Sackville  Street Kew sold for  $2,300,000 by RT Edgar.

The most expensive property reported sold at auction at the weekend was a 7 bedroom home at 511 Belgrave-Hallam Road Lysterfield sold for $3,400,000 by Barry Plant.

The most affordable property reported sold at the weekend was a 3 bedroom home at 4 Lawson Road Melton South sold for $140,000 by PRD Nationwide Melton.

Low interest rates have been a key driver of housing market activity over the past year. The Reserve Bank met last week and although economic indicators remain mixed the Bank left rates on hold for the 13th consecutive month – the longest steady sequence since 2003.

Although rates are set to remain on hold over the near-term, a weakening economy – particularly rising unemployment – together with a stubbornly high dollar will continue to put a downward bias on potential interest rate outcomes.

Results at http://www.homepriceguide.com.au/



Want more of this type of information?


Andrew Wilson

About

Dr Andrew Wilson is Australia’s leading housing market expert. As senior economist for Fairfax-owned Domain Group, Dr Wilson is one of the nation’s most respected real estate analysts and Australia’s highest profile housing market commentator. Visit his blog at Domain


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