Surge in housing in Sydney results in weaker auction clearance rates

Sydney’s innumerable homes, which are up for sale, gave late winter auction market a run for their money. The share prices fell at the weekend with clearance rate of 76.4 percent on Saturday, straight down from 79.7 percent recorded in the previous weekend.

The clearance rate, which was clearly much lower than last year’s one, is indicative of surging home sale in Sydney in the past months. Although the rate was stabilised yet it was short-lived.

Sydney has now recorded five consecutive weekends with rates below 80 percent, the weakest monthly results this year so far, reflecting the fall of investor’s demand for properties. In response to the underlying demands for housing in Sydney, supply prices have been relatively strong, reflecting the fall in the clearance rates.

Markets are full of sellers rushing to maximise their benefits from the fall. In total, 724 homes were auctioned on Saturday, similar to the 727 auctions last weekend.

The auctions in Sydney have recorded a huge increase as compared to last year. Over 2,941 have been listed this time whereas 1,718 were listed last year. A straight jump of 71.2 percent from the last year has been recorded.

The Blue Mountains again recorded the highest clearance (100 percent) rate of all Sydney suburban regions, followed by the upper north shore with 90.3 percent, the inner west 83.5 percent, the northern beaches 82.2 percent, the lower north 80 per cent, the city and east 79.2 percent, the south 75.9 percent, the west 75 percent, the central coast 71.4 percent, Canterbury Bankstown 67.5 percent, the north west 64.7 percent and the south west 41.9 percent.

The most expensive home was sold by Belle Property's Matthew Smythe for $6,191,000. Although clearances rates faded at the weekend , the Sydney home auction price trend increased from the $1,030,125 recorded the previous weekend to Saturday's $1,071,375.

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