Sydney winter auction market cools

The Sydney winter home auction market has ended with clearances rate weakening although auction numbers remain significantly higher than recorded over the same period last year.

Sydney reported an auction clearance rate of 65.1 per cent over winter, compared to 72.8 per cent over autumn and 72.3 percent over winter last year.

8,497 auctions were conducted over winter which was lower than the 10,168 auctioned over autumn but well ahead of the 6,511 or 30.5 per cent higher than were conducted over winter last year.

Regional clearance rates were all lower over winter compared to autumn and also lower compared to the results of winter last year. The lower north and the inner west were the top performers with 74.6 per cent and 70.6 respectively with the lowest rates recorded by the south west 49.3 per cent and the central coast with 53.3 per cent.

Regional auction numbers were well ahead of last winter’s listings with the upper north shore the most popular with 1391 followed by the city and east with 1314 and the inner west with 1177. The west and Canterbury Bankstown recorded the highest growth in auction listings this winter compared to winter last year, up sharply by 60.9 per cent and 58.5 per cent respectively.

Although Sydney auction numbers will continue to rise through spring and likely remain ahead of last year’s totals, clearance rates are set to track lower as the lower interest rate energy driven by last year’s rate cuts dissipates.

Sydney sellers overall however will maintain the upper hand, particularly in the inner suburban markets.

Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and Facebook at MyHousingMarket