Sydneysweekend home auction market recorded another moderated result on the official opening to the spring selling season, with investor demand on the slow down.
Although Saturdays 75.1 per cent auction clearance rate was marginally ahead of the year-low 73.7 per cent recorded the previous weekend, it was nonetheless the second lowest rate recorded for the year so far.
The weekend auction market in Sydney has clearly weakened over winter with clearance rates falling well below those recorded in autumn and lower than those recorded at the same time last year. Sydney has now recorded sevenconsecutive weekends below 80 per cent following 22 consecutive weekends (excluding holidays) above 80 per cent.
Spanning 3687 square metres, Wellings was the priciest home sold on Saturday. Photo:Supplied
The Sydney market was on the rise a year ago, with clearance rates consistently climbing above 80 per cent. The rate reported for the same weekend last year was 82.7 per cent nearly 10 per cent higher than that recorded on Saturday.
Lower prices areas to the west and south west have however been clear underperformers over the past month with clearance rates falling sharply. This may reflect recent tightening of bank lending policies for investors dampening demand from this group that typically target lower-priced properties with higher yields.
Lower prices areas to the west and south west have however been clear underperformers.
Despite this, extraordinary levels of auction listings continue to test the market, providing buyers with a wider choice of properties as supply catches up with demand.
A record September Saturday of 817 auctions were scheduled at the weekend higher than the 811 listed last weekend and well ahead of the 522 auctions conducted over the same weekend last year. Strong tests continue to loom for the Sydney market with more than 800 auctions set for each Saturday over September.
The improvement in the overall clearance rate this weekend followed a sharp rise from the north west suburban region that has recorded unusually low clearance rates recently.
The Blue Mountains recorded the highest clearance rate at the weekend with a 100 per cent result with twoout of twohomes listed selling under the hammer.
The next highest was in the inner west with 84.4 per cent and the highest sales at 92 followed by the north west 82.9 per cent, the upper north shore 81.5 per cent, the lower north 79.7 per cent, the northern beaches 79.5 per cent, the city and east 79.2 per cent, the south 73.7 per cent, Canterbury Bankstown 71.4 per cent, the central coast 61.5 per cent, the west 60.3 per cent and the south west with a clearance rate of just 54 per cent.
Higher priced regions have reported the highest clearances rate over recent weekends which reflect typically higher levels from buyers and sellers in this group over the early spring market.
Notable sales reported at the weekend included a four-bedroom home at 3ABirriwa Place, Northwood sold by McGrath Lane Cove for $5.26 million, a three-bedroom unit at 25/7 South Steyne, Manly sold by McGrath Manly for$4,675,000, a six-bedroom home at 4 WestStreet, Strathfield sold for $4.1 million by Strathfield Partners, a five-bedroom home at 2AKelburn Road, Roseville sold for $4 million by McGrath Lindfield and a six-bedroom home at 118 MacAulay Road, Stanmore sold for$3.65 millionby Belle Property Annandale.
The most expensive property reported sold at auction at the weekend was an eight-bedroom home at 4 Woodside Avenue, Burwood sold for $6.5 million by Raine and Horne Burwood. The most affordable property reported sold at the weekend was a two-bedroom unit at 19/60-62 Speed Street, Liverpool sold for $355,000 by Prudential Liverpool.
For a list of weekend auction results in Sydney click here.
With higher priced properties active in the spring market, the Sydney home auction price trend continues to increase with this weekends result of $1,121,375 up from the $1,108,875 recorded the previous weekend and 18.7 per cent above the $944,750 trend recorded over the same weekend last year.
Although the Reserve Bank has unsurprisingly decided to leave official interest rates on hold over September, the chances of another rate cut this year have recently increased.
Rising unemployment and growing concerns over the prospects for the global economy particularly China, may activate the Bank to act to stimulate the local economy, particularly as the Bank has conceded that underlying growth may now be lower than previously forecast.
Latest ABS data reporting near flat GDP growth over the June quarter reinforces rising pessimism over the future direction of the Australian economy and a downward bias for interest rates. A sharp fall in the Australian dollar last week is a positive however for Australias export-orientated industries.
Dr Andrew Wilson is Domain Group Senior Economist Twitter@DocAndrewWilson
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