Sydney’s home auction market has been heating up despite the weaker economy and sellers in some pockets have been scoring prices that would have been unthinkable six months ago.
New research showed auction clearance rates have been creeping up over the past month and there were more than 10 sales over $5m in August – unusual for the normally quiet winter selling period.
The top recent sale was the $8.65m paid for a Hunters Hill estate on Point Rd, while Manly, Burraneer and Vaucluse had sales over $7m.
The clearance rate for August sales was 68.1 per cent – marginally higher than the 65 per cent rate reported over July, according to data from My Housing Market.
The August clearance rate was boosted by strong sales in the closing weeks of the month – the clearance rate for the last two weeks of August was over 70 per cent.
Top regional performers were the northern beaches with a clearance rate of 73 per cent and the Central Coast with a rate of 72.3 per cent.
My Housing Market reported this indicated “rising pre-spring buyer momentum”.
Real estate experts said the auction market defied a wider slowdown in the housing market as a whole because upsizing families were struggling to find houses with backyards.
The shortage, combined with strong demand for this housing category, created ideal conditions for auction campaigns.
“There isn’t much quality stock on the market. The homes that tick all the boxes are getting a huge response from buyers when they come up for sale,” McGrath agent Charles Stevens said.
“It’s the opposite in the unit market. Sellers are getting smashed because they don’t have any point of difference.”
My Housing Market economist Andrew Wilson said in a recent report that spring was shaping up well for the market.
“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,” he said.
“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.”
TOP AUCTION SALES IN AUGUST
1. 7A THE POINT RD, HUNTERS HILL $8.65M
2. 31 OLOLA AVE, VAUCLUSE $7.25M
3. 42 BULLS RD, BURRANEER $7.1M
4. 3 WOOD ST, MANLY $7.05M
5. 6 LISTER AVE, LITTLE BAY $6.4M
6. 46A WOOLWICH RD, HUNTERS HILL $6.35M
7. 22 LLANDILO AVE, STRATHFIELD $6.305M
8. 12 HARKNESS ST, WOOLLAHRA $5.71M
9. 19 WALLANGRA RD, DOVER HEIGHTS $5.65M
10. 26 JAMES ST, FIVE DOCK $5.1M