Sydney, Melbourne property pushing back

Sydney’s record-breaking early spring home auction market weakened last weekend reporting its lowest clearance rate for two months.

The 79.3 percent result broke a sequence of nine consecutive weekend rates above 80 percent and may reflect exceptionally high numbers of properties offered for auction.

Seven hundred and forty-seven homes were listed to go under the hammer last weekend, which was the highest weekend offering since May. August and September have produced record auction volumes in Sydney, with October set to continue the current record-breaking spring trend.

This weekend the Sydney home auction market will again host high auction numbers with 697 homes scheduled to go under the hammer. Although this is below last weekend’s offering it remains higher than the same weekend last year when 630 auctions were conducted.

The inner west will again clearly host the most number of auctions this weekend with 119 followed by the south with 116, the city and east with 90, the upper north shore with 79, the south west with 57, the lower north shore with 53, the west with 52, Canterbury-Bankstown with 48 and the northern beaches with 43 auctions scheduled.

The most popular suburbs for auctions this weekend in Sydney are Surry Hills in the city and east and Strathfield in the inner west, each with 12 auctions scheduled. These are followed by Paddington in the city and east and Auburn in the west, each with 11; Ryde on the upper north shore with 9; and Ashfield in the inner west, Randwick in the city and east, Bexley in the south and Concord also in the inner west, each with 8 auctions scheduled this weekend.

Although down on recent results, last weekend’s clearance rate nonetheless remains a strong outcome with the Sydney market clearly remaining in favour of sellers with plenty of competition amongst buyers for available homes.

Sydney’s four-weekend average clearance rate now stands at 82.0 percent compared to 82.8 percent over the previous four-weekend period.

High auction listing numbers will continue to test the Sydney market over coming weekends as vendors rush to take advantage of the still strong spring market conditions.

Melbourne’s home auction market has tracked backwards for the second weekend in row as signs emerge of waning buyer activity.

Melbourne recorded a clearance rate of 73.8 percent last weekend, which was the lowest result reported for two months and followed the previous weekend’s 75.8 percent with a falling trend now developing.

Last weekend’s result brings the four-weekend average to 77.9 percent compared to 77.4 percent average for the previous four weekends.

High auction numbers may be a factor in declining clearance rates with Melbourne metro area, last weekend, hosting 903 auctions – well up on the previous weekend’s 740 and ahead of the 874 listed over the same weekend last year.

This weekend the Melbourne metro area is scheduled to host 986 auctions – again well up on last weekend’s total and higher than the 938 listed over the same weekend a year ago.

Melbourne’s inner east will host the most number of auctions this weekend with 179 closely followed by the west with 172, the inner city with 159, the inner south with 128, the north east with 118, the outer east with 116, the north with 73 and the south east with 39.

The most popular suburbs for auction listings this weekend in metro Melbourne are Reservoir in the north east and Kew in the inner east, each with 20 auctions scheduled.

These are followed by St Kilda in the inner city and Camberwell in the inner east, each with 17 auctions listed; Glen Waverley in the outer east and South Yarra in the inner city, each with 16 auctions; and Brunswick in the north and Essendon in the west, each with 15 auctions scheduled this weekend.

August and September were record months for spring auction volumes in Melbourne with October set to continue the record monthly performances for this time of the year.

The Melbourne spring market will peak over the pre-Melbourne Cup weekend with an all-time record of over 1,500 Saturday auctions due to be conducted in the metro area. Record numbers of auctions will test buyer levels with signs of a creaking market already evident.

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