Market
There is a lot of media scrutiny around the ‘Spring market’ not being as bouncy as usual with Auction clearance rates lower than last years and the urgency in the market disappearing – and – On the whole, this criticism of the market is true.
However, isolating the Auction Clearance Rates from the overall clearance rates is isolating the sentiment of the entire market from that of the properties that are auctioned, which is not as accurate as it used to be. Although most properties are still scheduled for auction, there are less going to auction as they are selling prior for either great prices or to nervous vendors.
This gives us a hard market to read.
Further, the market is responding well to all of the negative and positive elements impacting us at the moment. Although foreign ownership is becoming harder, local sentiment is rising, although interest rates are set to rise, median sale prices are not falling and while lending criteria is getting harder, we are meeting more motivated buyers. There is an answer for all of these things and the market is evolving and absorbing it all.
While some of the outlier high sales are becoming more isolated, the trend of high selling properties are sitting comfortably at a water line set by this high market.
The Upper North Shore has not faltered but sellers with reasonable expectations will find motivated buyers and deals will continue to be impressive across the area as we see growth slow to a steady pace.
Australians of foreign origin
Interestingly, there was a report released by RPData which showed that predominantly QLD and NT are home of the majority of Australia’s citizens Whereas NSW and VIC tend to be home of the most foreigners. Notably Melbourne city over 65% and Sydney City over 50% of population are not citizens.
This may show the pressure pushing out from these CBD’s driving prices and purchaser out from the city.
Auctions
There were originally 721 Auctions scheduled with 484 reported to have taken place and 368 reported to be sold under the hammer with 54 withdrawn properties.
The median sale price at auction was $1,247,000 and the clearance rate was 68%
Thomas Merriman.
Thomas Merriman 