The signs are good for sellers after a month of clearance rates above 80 per cent

Sellers have every reason to feel confident on the first weekend of spring, after a month of auction clearance rates above 80 per cent.

Last weekend's 81.9 per cent was despite a 33 per cent jump in listings, with 583 properties going under the hammer.

The auction market is clearly rising, with the four-weekend average clearance increasing to 81.8 per cent compared to 77.8 per cent over the previous four weekends. This weekend, there are 521 auctions scheduled.

The northern beaches produced a stunning result last weekend with 33 from 34 properties listed selling, for a clearance rate of 97.1 per cent.

Next best was Canterbury Bankstown with 88.2 per cent; the upper north shore/north-west with 88.1 per cent and the south west was 85.2 per cent. The west was 84.8 per cent and the central coast 80 per cent.

The number of sales above $2 million was also well up on the previous weekend, with 22 compared with 14 the previous weekend.

 

This weekend, the inner west will host the most number of auctions with 77 followed by the city and east with 76; the south and the upper north shore/north-west with 70; the lower north shore with 57; Canterbury Bankstown with 37; the northern beaches with 36 and the west with 35.

The most popular suburbs for auctions this weekend are Surry Hills, Wahroonga and Alexandria with seven auctions each. Mosman, Epping, St Ives and Ultimo have six each.

Higher numbers of auctions will continue to test the market through to the end of the year, but signs remain positive that clearance rates will remain at solid to strong levels.

Although clearance rates are set to continue at encouraging levels for sellers, prices growth will be unlikely to match the boom-time results recorded over last spring.

The Reserve Bank met this week and although economic indicators remain mixed the Bank left rates on hold for the 13th consecutive month – the longest steady sequence since 2003.

Although rates are set to remain on hold over the near-term, a weakening economy - particularly rising unemployment – together with a stubbornly high dollar will continue to put a downward bias on potential interest rate outcomes.

Source: Domain Group

Paul Cooper
Dedicated, energetic and unmatched in local knowledge or experience, Paul Cooper is widely respected as one of the Inner West’s most ethical and skilled real estate professionals.

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