Sydney’s improving auction clearance rates are a positive sign for the market however impending rate rises and the end of the beefed-up first home owners grant may dampen activity.
Real Estate Institute of NSW CEO Tim McKibbin told the Daily Telegraph that although the market is going strong, the wind back of the first home owners boost in September and a possible increase in interest rates could slow market interest.
On 1 October 2009, the federal government will slash its $14,000 grant for an established home and $21,000 grant for a new property to $10,500 and $14,000 respectively.
A Residex July 2009 snapshot of the city's home values showed that it was predominately the lower end of the market that was driving the recent property price surge.
Prices in Liverpool are up 7 per cent this month compared to a drop of 8 per cent in Manly on the Northern Beaches.