Property market heat continues even in colder months
The property market has continued to perform during winter, despite the usual trend for auction listings to taper off in the colder months.
“Sydney and Melbourne have record numbers of winter auction listings currently. This shows that cyclical forces are outweighing the seasonal activity levels at the moment” Andrew Wilson, Senior Economist at Domain Group told the Switzer Super Report.
According to Australian Property Monitors, Sydney had 416 properties at auction last weekend compared to 331 properties during the same weekend last year.
In Wilson’s weekly blog, he explains how last weekend, Sydney experienced its highest clearance rate in ten weeks. APM also reported that Sydney had four consecutive weekends with clearance rates over 77% for the first time since March. The Melbourne auction market recorded its best result in 12 weeks.
Wilson suggests clearance rates might also be improving as attitudes towards reserve prices start to shift.
“There are now more realistic expectations from sellers – they were starting to get a little more confidence, particularly with the press saying reserves were being exceeded by significant amounts.”
Also putting a floor under buyer confidence are the lower interest rates and competitiveness between fixed rate providers.
According to Wilson, Sydney’s inner suburbs had the strongest weekend clearance rate results and the lower north shore, inner west, the city and the east were some of the standouts.
The top ten list of national property sales last week featured an inner west suburb of Sydney, Cabarita, in equal third place. The property, located on 36 Dorking Road, has four bedrooms, four bathrooms, a two-car garage, and sold for $2.85 million.
According to Wilson, the inner east, inner south and outer east were strong performers in Melbourne.
One of Melbourne’s inner east properties also made the top ten list of national property sales last week.
The property, located in Wiseman Street, Hawthorn East, sold for $2.16 million and has four bedrooms, three bathrooms, and a two-car garage.
“With three weeks to go until spring [the market performance] really is a solid precursor for what looks like what will be another healthy selling season for both Melbourne and Sydney” Wilson said.