Sydney sellers brace for the biggest auction day of the year

Sydney home hunters will be spoilt for choice this weekend as the city gears up for its biggest auction day of the year.

More than 950 homes are scheduled to go under that hammer on what could turn out to be the only Super Saturday this spring.  

The last time this many homes were up for sale was the same weekend in November 2015, when 1066 properties went to auction. 

But the clearance rate then was less than 60 per cent. Now, clearance rates are consistently around the 80 per cent mark.   

Last weekend, 768 homes were up for sale and 79.5 per cent of them sold on the day. The boom-time buyer momentum is expected to continue on Saturday, despite the surge in listings.

Auction numbers have been significantly lower this year but a late run of new listings is closing the gap on last year.

Inner-suburban regions again produced exceptional results last weekend with some areas recording 90 per cent clearance rates. 

The city and east will again host the highest number of auctions of all the Sydney regions this weekend with 128, followed by the inner west with 124, the upper north 117, the south 110, the south west 79, the lower north 77, the west 76, Canterbury Bankstown 72, the northern beaches 571, the north west 37, the central coast 30 and the Blue Mountains with three auctions scheduled for Saturday.   

Maroubra is the most popular auction suburb in Sydney this weekend with 14 followed by Randwick 13, Mosman, Bexley, Lane Cove North and Wahroonga each with 12, Blacktown 10 and Paddington with nine auctions listed on Saturday.

Top performer was the ever-reliable inner west with a 91 per cent result followed by the northern beaches with 90.5 per cent, the city and east 90.2 per cent and the highest sales at 74, the lower north 84.4 per cent, the north west 81.5 per cent, the upper north shore 79.4 per cent, the south 74.3 per cent, Canterbury Bankstown 73.9 per cent, the west 69.7 per cent, the south west 63.3 per cent, the central coast 58.8 per cent and the Blue Mountains where the single reported auction failed to sell under the hammer.      

Although the Sydney auction market remains strong NSW first home buyer activity continues to fall with current levels the lowest on record for the state market.

The latest Australian Bureau of Statistics data reveals that just 1284 loans were approved for NSW first home buyers over September, which is the smallest September total recorded in the series since the all-time low recorded over September 1991.

First home buyer loans in NSW accounted for a record low 4.5 per cent of all lending approved for housing purchases over September. This is well below the long-term market share for this group of 13 per cent and is clearly the lowest proportion of all the state markets – well below the next lowest state South Australia with a 9.7 per cent loan market share.

Although activity levels are low and falling, the average loan approved for a first home buyer in NSW increased by 2.9 per cent to $376,700 over the month and was clearly the highest of all the states with next highest Victoria at $325,100.

First home buyer activity in NSW is set to remain at historically low levels, particularly with home prices rising sharply in the Sydney market over recent months. The recent surge in investor activity is also clearly a factor in sidelining NSW first home buyers and will continue to contribute significantly to prices growth.

Dr Andrew Wilson is Domain Group’s chief economist

Twitter @DocAndrewWilson

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