Auctions Continue To Rise In Slowing Sydney Market
While reports swirl about the Sydney market flat lining over the early spring months it is promising to see the Sydney auction market on the increase for the third consecutive week. We reported not long ago the impact that the footy finals had in terms of volume of auctions, while clearance rates, remained fairly steady. Since the long weekend both auction volume and clearance rates have been on the improve, with last weekend in Sydney yielding the best auction results weekend since September 9, with a 70.4% preliminary clearance rate reported by Domain.com.au.
While other regions across Australia experience an increase in activity throughout the spring months, the data relating to Sydney report this is a traditionally a period that slows in terms of buyer activity, putting pressure on property prices. The lack of buyer activity simply means that there is less competition for each property forcing owners to be realistic about sale prices if they are serious about selling.
According to industry experts, Sydney buyers are simply taking a little more time to make decisions and are able to comfortably do so as there isn’t the same level of aggressive competition for each property as we have seen in previous months. The very nature of the auction process counteracts this occurrence, ensuring that regardless of the buyer activity on any given week, the property is presented to the market with a clear deadline forcing buyers to compete in the auction arena to place the winning bid.
We will watch with interest this week as we approach the highest volume of Sydney auctions this financial year with more than 1000 homes scheduled to be sold under the hammer.