Autumn arrives for a red-hot Sydney market

The official Sydney autumn auction selling season commences this weekend with the local market in top shape following a record-high February performance for both clearance rates and listings.

This weekend Sydney will host nearly 700 auctions which will be significantly lower than last weekend’s record February Super Saturday 940 listings but significantly higher than the 583 auctioned over the same weekend last year.

The south will host the most number of auctions with 88 followed by the inner west and the upper north shore each with 85, the city and east 80, the lower north 79, the south west 62, the west 57, the northern beaches 48, Canterbury Bankstown 45, the north west 27, the central coast 17 and the Blue Mountains with 2 auctions listed for Saturday.

The most popular suburb for auctions this weekend in Sydney is Mosman with 15 followed by Wollstonecraft 10, Blacktown 9, Marrickville and Ryde each with 8 and a number of suburbs with 7 auctions listed including Randwick, North Sydney, Casula and Croydon Park.

The Sydney weekend home auction market produced yet another boom-time result last Saturday despite a record number of February listings flooding the local market.

Sydney recorded a clearance rate of 80.2 percent which was just below the previous weekends 83.1 per cent and was well ahead of the 76.9 per cent recorded over the same weekend last year.

With a significantly higher proportion of Super Saturday listings, inner-suburban, higher-priced suburban regions dominated the results last Saturday in a familiar pattern that has been consistent in Sydney over the past year. Results in Sydney’s western suburbs however were however again well below the leaders.

The Blue Mountains recorded a 100 per cent clearance rate last weekend from its single reported auction. Next highest was the upper north shore with 86.9 percent followed by the inner west with 85.6 per cent, the city and east 84.2 per cent and the highest sales at 117, the lower north 83.8 per cent, the northern beaches 82.5 percent, the south 79.5 per cent, the north west 71.4 per cent, the south west 71.1 per cent, the central coast 70.6 percent, Canterbury Bankstown 65.7 per cent and the west with a clearance rate of 54.3 per cent.

The Sydney home auction market has now recorded its third consecutive weekend clearance rate above 80 percent with overall boom-time conditions prevailing. Sellers continued to be advantaged by seemingly insatiable buyer appetites, particularly in inner suburban and higher-priced regions.

The March market commences this weekend with significantly fewer auctions which will provide fertile ground for another strong result as the Sydney buyer battle continues.

Low interest rates remain a significant driver for the continuing strong performance by the Sydney housing market. The Reserve Bank meets next week for its regular monthly meeting and following a positive result for national economic growth over the December quarter announced by the ABS, official rates are almost certain to remain on hold.

The direction of mortgage rates however remains problematic with banks likely to continue to push rates higher in the shorter –term reflecting finance market and regulatory pressure.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn Facebook at MyHousingMarket and listen 2UE Lifestyle Radio Fridays 11-12pm and Mondays 7-8pm.