To observe or to speculate | The Real Estate Wrap with Leanne Pilkington
Welcome to this week’s Real Estate Wrap with Leanne Pilkington, Managing Director of Laing+Simmons and President of REINSW.
Sydney had 625 auctions this week, down from 706 last week and 528 this time last year. Of the 491 auction results collected so far, 69.5 per cent have been successful. The Northern Beaches had the strongest clearance rates over the weekend, while Parramatta had the lowest.
The market has held firm and remains active, even while we have lower interest rates, low supply and high demand. Observation instead of speculation is recommended, as well as asking questions of agents in your local area for their market knowledge.
Hey everybody, Leanne Pilkington here for The Real Estate Wrap, week commencing September 7th. We’re in Spring and how happy am I about that?
So this weekend, 625 properties went to auction for a preliminary clearance rate of 69.5 per cent. These numbers are according to CoreLogic.
Last week, 706 auctions at a clearance rate of 64.2 per cent. Same time last year, 528 auctions at a 75.7 per cent clearance rate.
Melbourne only had 28 auctions, oh my goodness! My heart is going out to everybody down in Melbourne right now, and it’s unlikely there’s going to be too many auctions over the next month or so after the news yesterday.
Back in Sydney, the Northern Beaches market is still going from strength to strength at 81.3 per cent preliminary clearance rate. Our worst result was in Parramatta where just under half of the properties that went up to auction sold.
It’s important to remember that auctions only represent about 20 per cent of our market. So there were a number of properties sold via private treaty in the last week.
I’m getting a lot of flack on social media about these numbers. I’m just calling the numbers that are being given to me by CoreLogic but what you need to understand is that nobody would’ve predicted that the market would still be this strong 3 months ago.
So if we were speculating 3 months ago, we wouldn’t have assumed that we would be seeing the results we’re seeing today, and I refuse to speculate where the numbers are going to be in 3 months time because I don’t know. There’s too many things that are outside of our control.
But what you do need to remember is a few things. Firstly, we still have low supply. But we have got still quite strong demand in a number of areas and we’ve got strong demand because there’s not a lot to choose from.
But also because interest rates are at record lows and will stay that way for quite some time, and the Reserve Bank actually provided 90 billion dollars worth of money at cheap rates to the banks, so there’s plenty of money to go around.
So while we’ve got access to funds, low interest rate, low supply and high demand, the market is going to continue to chug along. We’re all surprised by it but we are all very happy to continue going on the way we are.
So anyway hope you have a great week, and I will look forward to catching up with you again next week. Bye!