As home sellers prepare for spring, the Sydney auction market posted red hot results last weekend with a clearance rate of 82.8 per cent – higher than the previous week’s 79.4 per cent.
Experts attributed the strong prices to the interest rate cut during the first week of August, as well as low stock numbers.
“Sydney’s pre-spring market is clearly strengthening to year-highs and now in boom mode well ahead of last year at the same time,” said Domain Group chief economist Andrew Wilson.
In addition, many properties even sold more than $100,000 above the reserve price. That included a tiny 38-square-metre block at 140 Riley Street, Darlinghurst and a four-bedroom home at 27 Long Avenue.
“We’ve had some incredible results over the last few weeks,” said Phil Allison of Belle Property Hunters Hill. “The interest rate drop has had an impact… we’re feeling a better energy with the buyers and people have that sense of urgency back before prices increase again.”
Other houses that sold well above the reserve price included a three-bedroom weatherboard cottage at 20 National Street, Leichhardt and a 183-square metre home at 27 Day Street, Leichhardt. According to Hudson McHugh agent David Eastway, there were usually 40 to 50 homes on the market in Leichhardt, but it has been trimmed down to 15 as of late.
A five-bedroom home on a 529-square metre block at 53B Oleander Parade, Caringbah located 28 kilometres south of the CBD also fetched a price $55,000 above the reserve.
“It’s been a very strong market this winter and it’s going to continue into spring,” said Matthew Callaghan of Highland Property Agents. “There’s a steady flow of property coming onto the market, but not a crazy amount.”
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