Sydney auction market finishes the year on the up

The Sydney weekend auction market has finished the year on a positive note following a roller-coaster ride over the past 12 months.

The autumn market was super-energised by interest rate cuts in February and May and, driven by a strong local economy and rising confidence, clearance rates soared to almost 90 per cent – the highest levels on record.

Higher interest rates first for investors and then for owner-occupiers dragged the market down over spring with clearance rates falling sharply to below 60 per cent.

The local market, however, has steadied over the past month with lower listings a contributing factor. The market nonetheless is tracking at its lowest point in over three years, with lower priced outer suburban regions to the west clear underperformers.

Sydney recorded a clearance rate of 61.4 per cent on Saturday, which was the first result above 60 per cent for six weeks.

The weekend result was higher than the 58.1 per cent recorded over the previous Saturday, but well below the 76.3 per cent recorded over the same weekend last year.

The recent improvement in clearance rates may reflect lower listing numbers, with auction activity falling sharply over recent weekends.

Just 320 homes were listed to go under the hammer on Saturday, which was well below the 734 auctioned last weekend and also below the 395 auctions conducted over the same pre-Christmas Saturday last year.

In December, 1936 Saturday auctions were listed in Sydney, which is well down on the 2421 listed over December last year and reflects falling seller confidence in the local market following a record spring for listings.

Sydney’s inner suburban regions continue to report strong results and well ahead of lower-priced outer suburban areas.

The city and east were the top performers on Saturday with a strong 90.5 per cent clearance rate. Next highest was the inner west, with 83.8 per cent, followed by the lower north shore with 72.7 per cent.

Notable sales reported at the weekend included a five-bedroom home at 17 Rockleigh Street, Croydon sold for $2,360,000 by LJ Hooker Burwood; a three-bedroom home at 91 Dwyer Road, Leppington sold by LJ Hooker Leppington for $2,195,000; a five-bedroom home at 32 Eileen Street, North Balgowlah sold for $2,160,000 by Cunninghams Property; a six-bedroom home at 5 Coolalie Place, Kenthurst sold by Guardian Realty for $2,150,000; and a three-bedroom home at 34 Suffolk Street, Paddington sold for $2,110,000 by Ray White Paddington.

The most expensive property reported sold at auction at the weekend was a seven-bedroom home at 51 Brenda Avenue, Kemps Creek sold for $2,800,000 by LJ Hooker Leppington. The most affordable property reported sold at the weekend was a two-bedroom home at 84 Panorama Avenue, Charmhaven sold for $355,000 by LJ Hooker Toukley.

This two-bedroom home at 84 Panorama Avenue, Charmhaven was the most affordable property reported sold at the weekend. Photo: Supplied

With a lower proportion of higher-priced inner-city listings, trend weekend auction prices in Sydney unsurprisingly fell again at the weekend, down from the previous weekend’s $1,119,025 to $1,073,150. Prices, however, remain 14 per cent higher than the $941,563 trend recorded over the same weekend last year.

The lower north recorded the highest median auction price for houses at the weekend with $1,900,105, followed by the northern beaches $1,770,000, south west $1,600,000, the upper north shore $1,360,000, the inner west $1,247,500, the city and east $1,170,000, Canterbury Bankstown $1,015,000, the north west $960,000, the west $882,500, the south $830,000 and the Central Coast $464,000.

The Sydney home auction market will now close for a well-earned period of rest and reflection over the holiday break, with the battle between buyers and sellers set to resume in earnest in two months’ time in mid-February.

For a list of weekend auction results in Sydney click here.

Dr Andrew Wilson is Domain Group Senior Economist Twitter: @DocAndrewWilson

The Property Show expert 2UE Saturdays 12.30-1pm