Sydney auctions back as prices and rents rise

Sydney’s weekend home auction market returns for 2017 this Saturday although numbers will be typically small as the city slowly shakes off the summer holiday vibe.

Just 53 auctions are listed to go under the hammer which nevertheless will be higher than the 47 recorded over the same weekend last year.

The west and the north west will host the most number of auctions with 9 each followed by the central coast 8, the upper north shore 6, the south west and the northern beaches each with 4, the inner west, Canterbury Bankstown and the south each with 3 and the city and east and the lower north each with two auctions listed on Saturday.

Castle Hill, Carlingford, Bateau Bay, North Parramatta, Tumbi Umbi, Lindfield and Greystanes are the most popular suburbs for auctions this weekend in Sydney each with 2 scheduled.

With small numbers being offered, clearance rates this weekend will not be a reliable guide to underlying market conditions. The following weekend however over 200 homes will be auctioned in Sydney with results likely to more indicative of the strength of the market for sellers.

Sydney’s recorded robust spring selling season through 2016 with weekend clearance rates consistently above 75 percent.    The lower north recorded the highest regional clearances rates over the December quarter with a strong 83.6 per cent followed by the inner west 81.9 per cent and the northern beaches 81.3 per cent as the only other regions above 80 per cent.

Strong auction market conditions have predictably translated into strong prices growth in Sydney with the median house price rising by 4.7 per cent over the December quarter to a remarkable $1,123,991 – an increase of 10.7 percent over 2016. Unit prices also increased over the quarter – up by 2.9 per cent to a median $711,256 and an annual increase of 6.3 per cent.

Sydney rents are also rising with median asking house rents up by 1.9 per cent over 2016 to $540 and unit rents up similarly by 2 per cent over the year to $520 per week.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn