Bumper prediction: Big Sydney auction results warm the future winter market

While hopes were high for many buyers, auction numbers still remained low over the weekend in Sydney as the weather turned cold and bleak.

There were 471 scheduled auctions compared with this weekend last year, when 598 auctions were held.

The number of auctions was low, but the preliminary clearance rate of 71 per cent was one of the best results for the year.

Domain economist Trent Wiltshire said it was a sign the market was beginning to improve, with the clearance rate at its highest point in more than a year.

“It’s important to note that it’s a preliminary result and the final result is likely to be closer to 65 per cent once all the results come in,” Mr Wiltshire said.

“Looking forward, I think there will be a bit of a pick-up in activity over winter, but it won’t be a huge turnaround,” he said.

“Even though there is more buyer interest, this takes a while to translate into more sales as buyers need to apply for a home loan and search for a property.

“Sellers also might take time before looking to list their properties for sale, with people reluctant to sell when prices are falling.”

Auctioneer with LJ Hooker in Sydney Ben Mitchell said now was the right time for people to think about selling their home because less stock meant less competition to sell and better prices at auction.

“In the inner west last year on the same weekend there were 30 auctions,” Mitchell said.

“There were six over this [past] weekend,” he said.

The lack of stock has seen buyers move farther out for homes priced under $1 million, according to agent with Cobden & Hayson Marrickville Jim Nikolopoulos.

Cobden & Hayson, along with Mitchell auctioned, 22 Enid Avenue, Roselands, in Sydney’s outer south-west, at the weekend.

The three-bedroom, one-bathroom brick home sold for $50,000 above the reserve for $890,000.  A family from nearby Bardwell Park beat 10 other bidders for the home.

Other auctioneers were similarly reporting above-reserve sales.

The news revealed the renewed confidence and activity from buyers in the usually quiet winter market.

Damien Cooley, of Cooley Auctions, said there were several hard-fought sales.

One was a stunning one-bedroom apartment at 401/141 Elizabeth Street, Sydney, which saw six registered bidders fight it out with a mammoth 78 bids.

The sale was handled by auctioneer Lachlan Macdonald for Morton Circular Quay, with the apartment selling for $2.404 million, $204,000 above the reserve. A young woman was the successful buyer.

A home at 45 Rosebery Street, Penshurst, described as a “palatial mansion” sold for $125,000 above the reserve for $1.575 million.

Some 11 registered bidders competed for the property, which was auctioned by Michael Garofolo on behalf of Paramount Real Estate.

These sales seemed easy in comparison to a marathon, one-hour auction at 99 Haig Street, Maroubra, conducted by Damien Cooley on behalf of Ballard Property.

The three-bedroom, two-bathroom home was a deceased estate which passed in after bidding halted at $2.486 million. It sold late on Saturday night for $2,500,000.

Cooley said the home had been owned by the same family for 40 years.

A property owned for just six months sold $205,000 above reserve at 9-11 Andrews Avenue, Bondi, for $3.705 million.

Auctioneer and national sales director with The Agency, Thomas McGlynn, said the four-bedroom property, bought by an investor, could either be redeveloped or fixed up and rented out.

McGlynn said he was predicting a much busier winter market in Sydney, with people who did not want to sell over the Easter or election period now wanting to list their homes.

“I actually think we’re in for a bumper winter,” he said.