Why Canberra could shortly pip Sydney for prices
The Property Nerds are confident the ACT has the potential to pip Sydney for prices within the next 12 to 18 months. ...
Homes in Sydney are selling more than $1 million above the reserve, with the preliminary clearance rate hitting new heights, new research has revealed.
New Domain data has revealed that Sydney’s auction market is soaring, with records being broken across the board.
Namely, the median price for a house at auction in Sydney has hit a record-high $1.68 million, while the clearance rate is poised to surpass levels not seen since 2015.
According to Domain’s data, the auction frenzy is a direct result of record-breaking house price rises in Sydney towards the end of 2020.
But other contributing factors include higher demand from buyers who didn’t secure their home at the end of 2020, record home loans being financed and record interest rates.
“We’ve had a robust month for the auction market, we’re seeing strong results,” Dr Powell said.
“So far, the median auction price is looking set to be a record, and the clearance rate is looking to be a record.”
While the housing market has steadily risen, the median unit price fetched at auctions month-to-month was more volatile.
The median price in February to date sits at $942,750 – $7,750 less than the this time last year.
As such, Dr Powell cautioned that the market on the whole was not out of the woods yet.
“There are still headwind risks, we’re not fully off fiscal supports, we aren’t fully vaccinated and borders are still closed,” Dr Powell said.
According to Domain, last Saturday, a four-bedroom house at Loftus drew a crowd of 100 with a whopping 42 buyer registrations.
On the same day, a Cronulla house sold $1.3 million above its reserve, while a home sold for $1 million above its reserve.
And in Earlwood, a house that had sold for $1.25 million in October last year sold under the hammer for $1.745 million. That’s a profit of almost $500,000 in just four months.
But with demand now the biggest concern, Ray White NSW chief auctioneer Alex Pattaro tipped that more stock will hit the market in the coming weeks.
“The auctions I have this weekend are all shaping up to be bumper auctions,” he said. “I’m booked out every single Saturday until the end of March and already taking April bookings.”