Whenever the clearance rates for Auctions dip we typically have an excuse, the most common being; ‘this is the end of the bubble’. I am beginning to think that this sort of chatter could be true.
There was a very large number of property scheduled at the weekend however, and at least 80,000 people were training for Sundays big race, the ‘City to Surf’, could this have some contributing factor?
Normally I would say, ‘let’s wait a week or two’ but this is the second week below 80% and the third week of dramatic sliding in a downward trend in Auction Clearance Rates across Sydney.
Could the market finally be responding to the season? Surely this isn’t a response to the stagnant and dramatically low interest rates?
Now, there were 848 properties originally scheduled to go up for Auction at the weekend, with 674 reportedly taking place and of this, 539 were said to be sold.
Albeit low, at 75%, Auction Clearance Rates on weekends where there is a larger number of property – this year – have typically been slightly lower – not under 80% lower, but lower.
(I would have thought that bidding paddle No.8 on the 8th day of the 8th month would have been a large motivator for buyers in this market, perhaps they were the only people who bought?)
Surely before the market ‘pops’ there will be a resurgence in buyer confidence where they see these lower clearance rates and that boosts confidence at Auction, coupled with interest rates remaining low and desperation to purchase.
The good thing in this market for buyers is, the vast amounts of stock, low interest rates and the ability for Sydney’s Real Estate to continuously grow in value almost year-on-year.
Property that was expensive in 2001/2002 is twice as expensive now and property that was expensive in 2013 may have grown as much as 30% in some Upper North Shore suburbs, I’ve seen it.
However, there is already talks of a spike in interest rates in September, what does this mean?
Good luck.
Thomas Merriman.
Thomas Merriman 