Improved preliminary clearance rate for July | The Real Estate Wrap with Leanne Pilkington
Welcome to this week’s Real Estate Wrap with Leanne Pilkington, CEO of Laing+Simmons and President of the Real Estate Institute of Australia.
The Sydney property auction market is showing signs of improvement despite the winter slowdown:
- Preliminary auction clearance rate rose to 74.7%, the highest since early April.
- Sydney’s clearance rate increased to 76.7%, the strongest result since early May.
- Auction volumes (1,747) were the lowest since mid-June but still 22% higher than the same time last year.
- The winter slowdown is expected to continue, with around 1,500 auctions scheduled for the coming week.
- A bounce back to approximately 1,700 auctions is anticipated for the following week.
For buyers, the higher clearance rates suggest increased competition, potentially making it more challenging to secure properties at auction. However, the winter slowdown may still present opportunities in a less crowded market. Sellers can be encouraged by the improving clearance rates, indicating a strong demand despite seasonal factors. This could be an opportune time to list properties for auction. Investors should note the market’s resilience and consider the potential for price growth in areas with consistently high clearance rates.
Stay informed with our weekly updates.
Transcript:
Hey Leanne Pilkington with you for the real estate wrap, week ending the 8th of July. I am in Fez in Morocco which is just an incredible place to visit. Anyway, preliminary clearance rates were at 74.7% which is the highest we’ve seen since the first week in April. This week in Sydney we had 756 properties go up for auction preliminary clearance rate of 76.7% which is the highest we’ve seen since May. Last week 766 properties at a final clearance rate of 63% and same weekend last year 567 properties at a final clearance rate of 68.8%, Central Coast 21 properties at 63.6%, Blue Mountains only 3 from 9, Newcastle 29 properties at 65.2% preliminary clearance rate, Illawarra 4 from 8, lowest clearance rates were in Blacktown at only 47. 8%, the highest was believe it or not 100% in the Hills in Baulkham Hills, and the Hawkesbury from 44 properties. So really strong results out in the Northwest. The city, the inner south, the inner southwest, the inner west, the northern beaches and Sutherland all saw better than 80% results which is incredible. Now those results do sound really strong but what’s important to remember or to understand is that most of those auctions had fewer buyers than we’ve seen in the past so two or three buyers on each property. So interesting to see that the potential change in interest rates or the uncertainty I guess around interest rates are having an impact on the number of buyers, however the results are still strong. I’ll see you next week from – I think I’m going to be in Portugal – see you then!
