Sydney records 54 per cent more July auctions than last year

Sydney’s auction market eased at the weekend with the clearance rate slipping to the lowest result since June.

It followed a solid four-week run of rising buyer activity, unusual for the middle of winter.

Sydney reported a clearance rate of 69.7 per cent on Saturday which was lower than the previous weekend’s 73.1 per cent result and lower than the 75.7 per cent reported over the same weekend last year.

Although Saturday’s rate was down on those recorded over recent weekends, the local market has averaged 71.1 per cent over July which remains a solid result for mid-winter sellers.

In Sydney 2675 weekend auctions have been conducted over July, which is 53.5 per cent higher than the 1743 homes auctioned over July weekends last year.

Sydney auction numbers increased at the weekend with 537 homes listed to go under the hammer compared to 479 the previous weekend and well ahead of the 396 auctioned over the same weekend last year.

Sydney recorded a median auction price of $1,020,500 on Saturday which was lower than the $1,090,000 reported the previous weekend and 15.5 per cent lower than the $1,208,000 recorded over the same weekend last year. A total of $292.9 million was reported sold at auction in Sydney at the weekend.

Over 500 auctions are set to be conducted in Sydney next weekend to open the August market.

• Related: Click here for Saturday’s auction results
• Related: Click here for the Market Snapshot
• Related: Rodd Point home soars above reserve to sell for $2,656,000

This week the Reserve Bank meets to decide the direction of official interest rates over August, with rates likely to remain at the current 1.5 per cent for the 12th consecutive month. Outside of Sydney the latest economic data remains mixed, with the ABS national June jobless rate at a four year low but rates in Melbourne and Brisbane increasing sharply over the past year to now over 6.0 per cent.

The ABS June quarter headline inflation result was disappointing increasing by just 0.2 percent over the quarter and up by 1.9 per cent over the year – below the RBA’s notional target range of 2 to 3 per cent. The recent trend of underlying inflation however has improved marginally although remaining at low levels.

The recent surge in the Australian dollar would also concern the RBA, following incorrect speculation about increases in local interest rates being sustained by a lower US dollar. Nonetheless, the Reserve Bank is likely to persist with its recent medium-term view of economic activity and likely keep rates on hold for the rest of the year.

Higher-priced inner suburban regions re-emerged as clearly the strongest suburban performers at the weekend although most areas produced solid results for sellers, with western suburbs trailing.

Regional results were down across the board on Saturday with only one area reporting a clearance rate above 80 per cent. The top performer was clearly the inner west with 81.2 per cent and the highest sales at 56 followed by the upper north shore 75.6 per cent, the south 74.5 per cent, the city and east 72.2 per cent, the northern beaches 71.4 per cent. Below the 70 per cent mark was the lower north at 69.7 per cent, Canterbury Bankstown 66.7 per cent, the north west 61.5 per cent, the central coast 56.3 per cent, the west 54.5 per cent and the south west with a clearance rate of 52.9 per cent.

Notable sales reported at the weekend included:

• A four-bedroom home at 18 Monash Crescent Clontarf sold by Stone Real Estate Seaforth for $4,540,000.
• A five-bedroom home at 154 Homebush Road Strathfield sold for $4,355,000 by Belle Property Strathfield.
• A four-bedroom home at 6 Collingwood Street Manly sold for $3,560,000 by Clarke and Humel Property.
• Another four-bedroom home at 33 Georgina Street Newtown sold for $3,520,000 by Urbane Inner West.
• A three-bedroom home at 31 Ocean Road Manly sold by Clarke and Humel Property for $3,450,000.

The most expensive house reported sold at auction was a five-bedroom home at 4 Stanhope Road Killara sold for $5,260,000 by McGrath Lane Cove. The most affordable property reported sold at the weekend was a one-bedroom unit at 9/42 Bayswater Road Rushcutters Bay sold for $440,000 by McGrath Eastern Suburbs.