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A sign stands at the front of a house after it was sold at an auction in the Sydney suburb of Waverley in Australia May 28, 2015. Australia and New Zealand are looking outside traditional monetary policy to do the same thing -- cool red-hot housing markets in their biggest cites without hurting borrowers, banks and their economies -- but they are following different paths. The success, or not, of these experiments could prove critical to the outlook for interest rates in both countries, while offering a guide to other rich nations on how to manage housing booms when the broader economy still needs support. Reuters/David Gray

As Sydney auctions soar with the beginning of spring selling season, local market indicates a clear slide. Sellers keep on investing in this sector because they could probably see a turning of the already scorching market.

This weekend have some 804 auctions, which are little lesser than the last weekend (814) but well higher than last years’ same weekend that listed only 522 auctions. Although auction season has just arrived, Sydney had already conducted over a thousand auctions in August.

In August, Sydney hosted about 3,756 auctions, 63.2 percent higher than what it was last year over the same period. With September auctions rushing up, it is expected to break the record of auction listings set for the month as more than 800 homes would be up on sale every Saturday of this month.

According to the Domain group, Sydney’s inner west is conducting 121 auctions over the weekend, followed by the upper north shore with 109 listings, the south with 108, the city and east 89 each, the west with 82, the lower north with 64, the south west with 58, Canterbury Bankstown with 54, the northern beaches with 53, the north west with 49, the central coast with 14 and the Blue Mountains with two auctions.

The most popular suburb for auctions in Sydney this weekend is Baulkham Hills with 11, followed by Strathfield, St Ives and Ashfield with 10 listings each. Record levels of supply are clearly impacting the market providing buyers with more choice and increasing the competition among sellers.

At the same time, Sydney’s fading home auction market welcome the auction season with a sharp drop in clearance rates last weekend. Sydney’s innumerable homes, which were up for sale, gave late winter auction market a run for their money.

The share prices fell last weekend of August with clearance rate of 76.4 percent, straight down from 79.7 percent recorded in the previous weekend. Nonetheless, auction market strengthened over August with an overall monthly clearance rate of 76.2 percent.

Since six consecutive weekends, Sydney’s auction clearance rate has trended downwards, heading below 80 percent and likely to go below 70 percent anytime soon. But auction prices have increased over August from AU$1 Million to AU$1.09 Million. It has gone up by 13.1 percent, representing Australia’s hot housing market growth and the impact of the underlying prices.

Another rate cut could be expected from the Reserve Bank of Australia, but for the month of September, it has left interest rates on hold.

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