By Guest Blogger, Dr Andrew Wilson, Chief Economist,
My Housing Market
Sydney’s weekend home auction market concluded winter with clearance rates clearly on the rise as the local market continues to shake off recent coronavirus restrictions and the associated impacts of a weaker economy.
Sydney recorded a weekend auction clearance rate of 68.1% over August which was marginally higher than the 65.0% reported over July but lower than the 78.3% reported over July last year. Clearance rates increased over the final two weekends of August to over 70%, indicating rising pre-spring buyer momentum.
Weekend auction numbers were similar to those recorded over July but continued at significantly higher levels compared to the same period last year. This reflects last year’s subdued winter market and the recent surge in online auctions - a hybrid of traditional auction and private treaty marketing.
2037 homes were reported listed over 4 weekends in August compared to 2458 over 5 weekends in July and 1941 auctioned over 5 weekends over August last year.
Sydney recorded a median weekend auction price of $1,190,000 over August which was lower than the $1,197,000 recorded over July and also below the $1,200,000 recorded over August last year.
The value of homes sold at weekend auctions however surged over August, increasing by 5.3% compared to July despite one fewer weekend and higher by 8.8% than August last year that also featured an extra weekend.
Top regional performers over August were again the Northern Beaches with a clearance rate of 73.0% and the Central Coast with 72.3%.
Surry Hills and Maroubra were Sydney’s leading suburbs for reported weekend auction sales with 13 each over August followed by Mosman, Strathfield, Kellyville and Drummoyne each with 12.
A 4-bedroom house in Hunters Hill reported the highest weekend auction sale over August at $8.65m followed by three houses with prices over $7m in Vaucluse, Burraneer and Manly.
The prospects for the Sydney housing market continue to improve with the clear likelihood of a typically active spring selling season ahead with upward pressure on prices set to emerge.
The local challenges from coronavirus constraints remain but have clearly waned over recent months with consumer confidence on the rise. Governments continue to provide strong support for economies under stress which remains a positive factor for a resurgent Sydney housing market.
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