As per the current report, the Sydney auction clearance rates found to be stuck at 50 percent. As viable sellers or vendors are not putting their properties on the list. Last week the Sydney housing market recorded a 56 percent clearance rate that is found near to the auctions clearance rate recorded in the initial days of September.
As the auction clearance rate is a key indicator of the real estate property market. It is expressed as a percentage the number of properties sold out at auction. It is calculated by dividing the total number of auctions by the number of properties sold at auction.
It is imperative to understand that a high clearance rate does not always indicate the strong market condition especially when auction numbers are found very low. Same as low clearance rate doesn’t indicate the declining market condition especially when the auction numbers are high.
Experienced Sydney Property valuers are saying - “Since 2008, this August the auction clearance rate is found to be very low”. As low property supply was the reason for this.
The stabilized auction clearance rates indicate that listings have succeeded. The Sydney property valuers are predicting that the reasons for low clearance rates might be the strict home loan procedures and fear of loss in investors keeping them away from investing money in the real estate property market. Well, the auction property clearance rate also depends upon the seller or vendor. The low property on auction indicates the high clearance rates, so when sellers draw back their property from the auction then definitely improvements in the auction rates can be seen and observed.
On the last week, the number of viable and prudent vendors were very less in number. On the contrary, the increase in home hunters, downsizers and first home buyers is seen.
The property valuers noted that Sydney’s inner west and eastern suburbs are mostly liked by the Gen Y. The youngers, new buyers, first home buyers all are believing that present is the good time for buying a property in Sydney. Whereas the investors, home flippers, developers all aren’t not interested in it.
Property valuer Sydney revealed that - “It was a fantasy for the young Australians to buy a home in Sydney, looking at the current market conditions now they are believing that it is not impossible to have a home in the busiest city of Australia that is Sydney.”
According to the recent report that the most expensive sale recorded in the Sydney Suburbs at the weekend was - 173 Underwood Street, Paddington, A terrace house in Sydney which brings $6.05 million.
Meanwhile, a house at 20 Lynwood Avenue, Killara fetched $3.42 million through Savills Lindfield, and a waterfront unit at 6/25 Waruda Street, Kirribilli sold out $3.35 million through Belle Property Neutral Bay.
For more information related to the Sydney real estate property market contact our property valuers they know all ins and outs of the Sydney property market. Feel free to contact our property valuers.