Eastern Suburbs Auction Market Comes Out On Top
The end of winter is on the horizon with just the rest of the month to pass by, which means one major thing for the eastern suburbs property market – the spring selling season is just around the corner.
This promises a surge in properties for sale as vendors who hesitated over winter finally decide to list, and their concerns about what to buy when the home has been sold can fade. For those wanting to sell before the rush, with enough time for a solid auction campaign, it’s time to consider listing.
Adding fuel to the fire are interest rates, which are now down to their historic lowest levels at 1.5% after a cut at the Reserve Bank’s August meeting, which saw the banks pass a portion on to mortgage holders. It seems the market has already responded in the eastern suburbs to the cut, and just in time for the warmer weather.
Over the past weekend, the city and east were top performing regions with an auction clearance rate of 92 per cent, with 46 properties under the hammer, according to Domain Group. Across Sydney over July, the clearance rate was 72.6% in July and 79.4% last weekend, the third highest result of 2016.
Right now, it’s a great time to be a home seller.
And in the past 12 months, median house prices are up 12.2% to $2.1 million, while unit prices are up 3% to a median apartment value of $860,000, Domain Group data shows. There have been stand out sales of almost all types of homes in the area. One-bedroom, one-bathroom 1/1 Silva Street, Tamarama, with ocean views but no parking, sold under the hammer on Saturday for $920,000.
FEATURE LISTING: 24 Lang Road, Centennial Park
Auction: Saturday 17 September 2016 @ 12:45pm – Details >
Listings are still down on their levels of last year, but it’s highly likely spring will be heating up with vendors increasingly waiting until the warmer months to put their homes on the market.
Homes are also selling off-market at increasing rates as buyers look to trump their competition prior to auction day.
CoreLogic is also recording solid results for the east, putting these suburbs just above the city, south and northern beaches – which also had clearance rates stronger than nine in 10 homes selling.
Buyers need to be watching closely and be ready to respond to offers, with counter offers of their own.
For the homes that make it to auction, it’s commonly quick bidding that reaches the price guide, but we’re not seeing as many over the top results this year as we were in July last year.
This appetite for well-located homes across Sydney, but especially locally, has not yet abated and there are no signs it’s slowing down. The low stock on market is clearly translating into higher clearance rates, but that’s only one part of the strong result.
Right now, auctions are usually the preferred method of sale for locals wanting a strong and timely result for houses and apartments and this comes as no surprise given the stellar results.
We’re seeing many groups coming through at open homes, as they battle it out for the still relatively few homes on the market.
Buyers who have missed out in the past need to be ready with their trump card in this environment, even without the frenzied nature of 2015.