With auction clearance rates coming in at over 60% for the first time in two and a half years, agents are starting to get excited. The real test will be over the next month when a higher volume of auctions will be conducted.
My prediction is if we stay in the fifties and sixties in regards to clearance rates, I really do think we have hit the bottom of the market.
Kingsley Yates Director of Ray White Neutral Bay Mosman says there is nothing for sale, or even anything presently on the horizon around that $4 to $5 Million range. It comes back to that same old rule of supply and demand, and at present in certain segments of the market there is literally no stock but a strong demand from buyers, which will push prices higher.
Now buyers I don't want to cause a frenzy here, but I do want to alert you to the fact that this market is either no longer a buyers market, or if it is, it won't be for very much longer. Please note I am not saying we are back to boom times, but what I am saying is that the market is now getting back to some normality, so therefore trading in and out will be a lot more practical and realistic.
I think a really good indicator for buyers to see if the market is hotting up, is when your friendly real estate agent decides that following up on buyers after the weekend open inspections is not necessary any more, because he or she has too many buyers already. Happy house hunting everyone and remember always start your offers low, and be sure to get a building and pest inspection before purchasing.
Peter Kelaher is the director of PK Property Search & Negotiators, Sydney's first, largest and most experienced buyers' agent. This company will search, bid at auction and negotiate property for buyers that don't have the time or experience to do so. For free independent advice call (02) 9904 3444 or visit www.pkproperty.com.au
Sydney Residential Auction Results 16 - 22 February 2006
Most Expensive Property: Sold prior to auction for $4,500,000: 24 Prince Albert Street, Mosman. Four bedroom house.
Cheapest Property: Sold at auction for $180,000: 9/232 Moore Park Road, Paddington. studio.
Clearance Rates and Median Prices
Number Auctioned 296
Number Sold 184
Number Sold After Auction 3
Number Withdrawn 30
Withdrawal Rate 9%
Clearance Rate 62%
Adjusted Clearance Rate™* 56%
Auction Median Price $626,000
Total $ Value Sold $138,020,000
*includes properties withdrawn prior to auction
Source: Home Price Guide Copyright © 2005 Australian Property Monitors
