Sydney’s spring time auction clearance rates heading for 50% as tunnels and stacks bite some buyers

August 8th, 2017

Domain reports a 70% clearance rate this Saturday from a skinny 503 offerings. The only hefty figure was the absurd 36% non reporting rate which likely means another sub 60% adjusted clearance rate.

While Cooley Auctions reported 77%, the agent we follow in the inner west laments the absence of buyers with none, one or two registered but not actual bidders now the norm. I agree with her.

Even allowing for some seasonality, the trend over the past seven weeks is now unarguable and it’s reinforced by the growing number of price reductions I receive each week.

At this rate, when spring stock floods the market, it will be a sellers’ nightmare with adjusted clearance rates around 50% likely especially as APRA’s measures and higher market interest rates bite.

For those who have been following our recent posts on toll roads, tunnels and stacks – one of the biggest Sydney property market stories going around at the moment – the second and third highest prices paid yesterday were in the actual and potentially stack affected Balmain ($4.3 million) and Haberfield ($3.85 million) with four between $2 and $3 million in threatened Balgowlah, Crows Nest, North Willoughby and Willoughby and three over $3 million in Kingsford, Manly and Seaforth.

As we have said, some buyers and owners do not care perhaps thinking electric vehicles will inevitably replace all petrol and diesel powered cars and trucks.

Many others do care  with a swag of owners selling or vowing to sell if one comes near or to their suburb and lots of buyers giving properties along actual or proposed routes a wide berth.