Buyer activity in Sydney’s strong home auction market weakened slightly at the weekend as the winter selling season commenced in earnest.
Sydney recorded a clearance rate of 75.6 percent which, although higher than last weekend’s Queens Birthday holiday result of 73.7 percent, was the second lowest recorded for a non-holiday weekend this year and below the May average of 77.6 percent.
This weekend’s clearance rate was also below the 76.9 percent recorded over the same weekend a year ago.
This weekend’s results below last year.
Although this weekend’s clearance rate was below last year’s result, the 619 properties auctioned at the weekend was significantly higher than the 454 auctioned over the same weekend a year ago.
High auction numbers are set to continue to test the market through June with 576 homes scheduled to go under the hammer next weekend – again well ahead of last year’s 424.
Sydney’s best performed suburban region at the weekend was Canterbury Bankstown with a strong clearance rate of 88.2 percent. Other top regional performers included the inner west with 83.6 percent followed by the lower north shore 83.3 percent, the south 78.9 percent and the city and east 77.9 percent.
The upper north shore produced an unusually low clearance rate for that region at the weekend at 66 percent and was a significant factor in the weakening of the overall Sydney result.
Standout sales results from the inner west at the weekend included a 6 bedroom home at 25 South Street Strathfield sold by Richardson and Wrench for $2,900,000 Strathfield, a 4 bedroom home at 6 Athol Street Leichhardt sold for $1,650,000 by McGrath Inner West, another 4 bedroom home at 123 Wentworth Road Strathfield sold for $1,522,000 by Elders Inner West- Enfield and a 3 bedroom home at 64 Moore Street Leichhardt sold by McGrath Inner West for $1,515,000.
The most expensive property reported sold at auction at the weekend was a 4 bedroom home at 21 Lower Almora Street Mosman sold by McGrath Mosman for $5,250,000. The most affordable property reported sold at the weekend was a 1 bedroom unit at 8/5 Steel Street Blacktown sold for $180,000 by Harcourts Unlimited.
Although Sydney’s weekend auction clearance rate weakened slightly over the weekend the market clearly remains encouraging for sellers.
Sydney is on track to break the record for the most number of auctions and auction sales ever recorded for the month of June.
Moderating clearance rates may reflect over-enthusiastic expectations by sellers in a strong market as near-record prices growth is typically reined in by the constraints of underlying lower incomes growth.
Latest data remains positive for the Sydney market with the ABS New South Wales unemployment rate trend over May steady at 5.5 percent – the second lowest result of all the states next to Western Australia.
You can read all the auction results at http://www.homepriceguide.com.au/
Home loan news positive
ABS home April loan data for NSW was also generally positive news for the Sydney housing market. Owner-occupied loan numbers were unsurprisingly down due to the Easter and Anzac Day holiday breaks during the month although the average value of home loans was up indicating continued upward price pressure.
Despite the shorter trading month, the value of residential investor loans increased over April reflecting the continuing strong impact of this buyer group on the Sydney market.
Not so positive news for NSW first home buyers from the ABS April stats with total loan market share for that group falling to just 4.2 percent- the second lowest on record. On the bright side however, first home buyer numbers have increased by 14.5 percent over the first 4 months of this year compared to the same period the year before.
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