The Daily Telegraph Real Estate Auction Blog: Live Updates from the Real Estate Market

A record number of properties are set to hit this weekend, and the flood of sales has pushed sales success to the lowest level in a year.

Sydney has been flooded with new property listings since the social restrictions were lifted in October. Sydney is currently preparing for the biggest auction activity week on record.

CoreLogic reports that more than 1650 auctions are scheduled per week and more than 1100 properties will be sold on Saturday.

This was a reversal of the period during the blockade, with few vendors bringing homes to market, and strong buyer demand meant that the diversification of listed properties sold quickly.

The auctioneer reported that the increased supply of available properties, coupled with the increased hesitation from buyers, helped ease prices.

Alex Pattaro, Ray White’s chief auctioneer, said many auctions are a completely different market than they were a few weeks ago, when they attracted more than 10 registered bidders.

“It’s a noticeable change,” he said. “Prices are still maintained and sellers are getting decent results. Buyers are not paying the additional premium they used to be.”

Pataro added that soaring price expectations from sellers are one of the reasons why more homes are starting to move in.

Auction success rates reached 90% earlier this year, according to CoreLogic data, but have declined in recent weeks.

Last week it was 68.7%, the lowest weekly clearance rate recorded this year, falling below 70% for the first time since 2020.

The long-term average clearance rate is about 65%. It is also a sign of a balanced market between buyers and sellers. A clearance rate of less than 50% indicates a weak market.

Cooley Auctions auctioneer Michael Garofolo said the slowdown was more pronounced in more expensive areas such as the Inner West and less pronounced in western Sydney.

“Cheap seats come first, and expensive seats take a little longer to sell,” he added, adding that Western Sydney didn’t have the affordable barriers that are prevalent in other regions.

“Many properties are still reasonably priced, and the more west you go, the more affordable they are,” he said.

Will Hampson, director and auctioneer at Lumby Hampson, said a similar trend was seen in the Hills area. Affordability compared to other parts of Sydney helps keep the market moving.

“Prices have risen significantly, but not as astoundingly as elsewhere. Areas like Bowcome Hills still attract many families,” Hampson said.

CoreLogic data confirmed that the Hills area was Sydney’s most powerful major auction market last week, with 78% of auctions cleared.

The Daily Telegraph Real Estate Auction Blog: Live Updates from the Real Estate Market

Source link The Daily Telegraph Real Estate Auction Blog: Live Updates from the Real Estate Market

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