Sydney auction market finishes year on a record high

Sydney’s weekend auction market has finished a strong year for sellers with a record number of sales for a final December Saturday.

Sydney recorded a clearance rate of 71.4 percent on Saturday which was well below the 76.2 percent reported the previous weekend but significantly higher than the 61.4 percent recorded over the same weekend last year.

Although Saturday’s clearance rate was the lowest reported since the Queen’s Birthday holiday weekend last June, it was nonetheless a good result for sellers given the unprecedented volume of final day auctions conducted.

A remarkable 686 homes were listed to go under the hammer on Saturday which was well ahead of last year’s final weekend total of 320 and higher than the previous record final day offering of 547 auctions recorded on December 15 2012.

December has sharply reversed the previous trend of lower auction numbers this year compared to last year at the same time with 2463 weekend listings over the month compared to 1936 listed over December 2015. The December weekend auction total was also the highest ever recorded for that month exceeding the previous record 2421 set in 2014.

Regional results at the weekend reflected the lower overall clearance rate with only three results over 80 percent. Reflecting the pattern typical for most of this year, higher-priced, inner-suburban areas again produced the highest results with regions to the outer west the underperformers.

Top performer was the ever-consistent inner west with 82.6 percent followed by the lower north 80.5 percent, the northern beaches 80.4 percent, the city and east 79.4 percent and the most sales at 50, Canterbury Bankstown 77.5 percent, the south 74.6 percent, the upper north shore 68.3 percent, the west 68.0 percent, the central coast 59.1 percent, the north west 56.5 percent, the south west 54.4 percent, and the Blue Mountains where the one reported auction failed to sell under the hammer.

Notable sales reported at the weekend included a  6  bedroom home at 101 Bowden  Street Ryde sold by McGrath Epping for  $3,800,000, a  4  bedroom home at 5 Phillip  Street South Coogee sold for  $3,570,000 by N G Farah, a  3  bedroom home at 7 Avona  Crescent Seaforth sold for  $3,310,000 by LJ Hooker Seaforth, a  5  bedroom home at 23 Grandview  Parade Caringbah South sold for  $3,309,000 by Steve Day and a  3  bedroom home at 30 Market  Street Drummoyne sold by Ray White Drummoyne for  $3,030,000.

The most expensive property reported sold at auction at the weekend was a  5  bedroom home at 2A Pibrac  Avenue Warrawee sold for  $4,600,000 by Di Jones Real Estate North. The most affordable property reported sold at the weekend was a  1  bedroom home at 31 Imga  Street Gwandalan sold for  $290,000 by Sorensen Real Estate.

For a list of Sydney weekend auction results click here Sydney auction results Saturday December 17

Sydney recorded a median auction price of $1,055,000 on Saturday which was lower than the $1,250,000 recorded the previous weekend.   Saturday’s median was 11.3 percent higher than the $947,500 recorded over the same weekend last year. A total of $369.3m was reported sold at auction in Sydney at the weekend.

The Sydney housing market has recorded another positive result for sellers this year and is set to remain a leading performer again next year although growth rates are likely to be lower.

The Sydney median house price surged over spring increasing by 4.9 percent over the November quarter compared to the previous quarter to a new record high $1,106,415 – and an increase of 7.4 percent over the year.

Sydney’s median unit price has also increased over spring rising by 3.6 percent to a new record median of $712,007 – an annual increase of 6.0 percent.

Sydney house prices can be expected to increase by 4 percent next year with the increasingly likely stimulatory impact of lower official interest rates offset by higher mortgage rates set by banks.

Unit prices can also be expected to continue to increase although at a lower annual rate than houses at 3 percent reflecting higher levels of new apartment stock entering the marketplace

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and listen 2UE Lifestyle Radio Fridays 11am and Mondays 5pm

Source: http://www.domain.com.au/news/sydney-auction-market-ends-year-on-record-high/