Sydney hits new high in auction clearance rates
Mon November 14, 2016
We've spoken recently in this blog and in our Sydney market updates about how clearance rates have been going up over the last few weeks during the busiest time of the year for real estate. The trend has continued, with the most recent batch of information from CoreLogic RP Data revealing a new high of 84.4 per cent. This is an absolutely huge number, and really reinforces how good the market is at the moment for anybody looking to sell their property.
In fact, Sydney is at the top of the pile for clearance rates amongst capitals, with second placed Melbourne clocking in at 78.6 per cent over the most recent week of activity. So, why is Sydney's clearance rate so high?
The growing clearance rate isn't just down to one factor, but several.
Annual changes in the market
One of the most interesting aspects of the CoreLogic data is that this time last year, Sydney's clearance rate was sitting at 60.2 per cent. Has auction success really jumped that much over the course of 12 months?
The answer is maybe, with more than one factor at play here. As well as the greater number of properties selling at auction, there is also a lot less stock available, which obviously has an impact on the overall figure. There's also higher demand to consider, with more people moving into the city every day. It's therefore clear that the growing clearance rate isn't just down to one factor, but several.
The big question at the moment is how long things will continue. The market typically cools off a little bit before Christmas, with attentions turning to the holidays. That doesn't mean clearance rates will drop though, and with some sellers waiting until the new year to list, they may even rise further as stock dips.
Sydney leading Australia in auctions
What's most impressive about Sydney's clearance rates is that they have been achieved with a far higher number of auctions than other capital cities - over 1,000 in the measured week compared to Melbourne's 629.
The fact that clearance rates are still over 80 per cent with so many more auctions underlines just how desirable Sydney property is and will continue to be over the coming years. For more information on the market and how you can make the most from selling your home, contact Laing+Simmons today.