Another big day of auctions for strong Sydney market

The red-hot Sydney auction market will host another relatively big Saturday of auctions this weekend although this will unlikely quell the remarkable demand from buyers evident over spring so far.

More than 800 homes will go under the hammer in Sydney, which will be higher than the 792 auctioned last weekend and the second highest Saturday total this year so far. Auction numbers however will remain below the 1015 listed on the same weekend last year.

The inner west will host the highest number of auctions with 110 home set to go under the hammer, followed by the upper north shore’s 108 auctions, the south’s 102, the city and east’s 98, the lower north’s 88, the south west 65, the northern beaches’ 64 and the west’s 56. Canterbury Bankstown will have 47 auctions, the north west 41, the central coast 26 and the Blue Mountains just one auction.

Mosman is clearly the most popular suburb for auctions in Sydney on Saturday with 22 properties listed, followed by Blacktown with 10, Maroubra and St Ives each with nine and Epping, Baulkham Hills and Kensington with eight houses each listed for auction. 

A significant jump in auction numbers last weekend failed to dampen clearance rates with the Sydney auction market producing yet another boom-time result.  

Sydney recorded a clearance rate of 81.4 per cent last Saturday which, although below the previous weekend’s stunning 84.4 per cent, was another strong result for sellers. The market continues to track well ahead of last spring’s fast fading rates with just 66.3 per cent reported on the same weekend a year ago.

The spread of regional results was again reasonably consistent last weekend although the outer west areas were clear underperformers.

The upper north shore produced a remarkable performance last Saturday with a clearance rate of 92.8 per cent and the highest sales, with 90 properties being snapped off the market. Next highest was the northern beaches with 91.5 per cent, followed by the city and east with 87.3 per cent, the lower north with 84.5 per cent, the south with 83.5 per cent and the central coast with 81.3 per cent. The clearance rate hit 78.8 per cent in the north west, 78.8 per cent in the the inner west, 74.1 per cent in Canterbury Bankstown, 65.9 per cent in the south west and 58.5 per cent in the west.

The Sydney auction market continued to perform strongly over October with overall clearance rates rising from September’s 75.4 per cent to 77.4 per cent. This was also well ahead of the 61 per cent reported in October last year.

The median auction price however decreased over the month from $1,280,000 to $1,260,000, but is now 9.1 per cent higher than the $1,155,000 recorded over the same month last year.

Average weekend auction numbers increased from 589 over September to 594 over October, but numbers were still well below the 810 average of October last year. So far this year 23,619 auctions have been conducted in Sydney, 25.8 per cent less than the number listed over the same period last year.

While lower interest rates have been a key catalyst for rising auction markets, the Reserve Bank decided on Tuesday to leave rates on hold for the third consecutive month. 

The economy however continues to send mixed messages – with a lower jobless rate but sharply falling full-time employment, a high dollar and underlying inflation at record low levels.

Although the bank would be mindful of the strong housing market activity in Sydney and Melbourne, the likelihood remains that rates will be cut next year unless the economy improves.

Dr Andrew Wilson is Domain Group’s chief economist. Twitter@DocAndrewWilson join on LinkedIn and listen 2UE Lifestyle Radio Fridays 11am and Mondays 5pm.