Occasional unrealistic vendor expectations hover around Sydney auctions: APM
Sydney’s mid-winter auction market retained its recently renewed energy at the weekend recording yet another preliminary strong result around 77%, according to Australian Property Monitors.
The 77.1% clearance rate recorded was the third consecutive 77% plus result following a five week period of waning rates.
"A moderation of unrealistic price expectations from vendors may be a contributing factor to rising clearance rates over recent weekends," the APM senior economist Dr Andrew Wilson suggested.
Some 506 homes were scheduled for auction at the weekend in Sydney which was well up on the prior weekend’s 404.
It was some 174 more or 52% higher than the 335 homes auctioned over the same weekend last year.
"Auction numbers will continue to gradually rise over coming weekends from its July lows as the market turns from its mid-winter trough and heads towards the spring selling season," he said.
The inner west recorded the highest clearance rate at the weekend of all the suburban regions with an exceptional 90.7% result.
"Next best was the lower north with 88.9% closely followed by the city and east with 88.7%, the upper north with 87.2% and the south with 83.1%.
"The strong upper north shore result follows last weekend’s relatively low result and reflects continuing strong underlying demand for property in that region."
The most expensive property reported sold at auction at the weekend was the five bedroom home at 23 Beaufort Street, Croydon Park (pictured above) sold for $2,190,000 by Elders Inner West-Enfield agent Sebastian Bonaccorso. It came with lift servicing three levels including its basement garaging for eight cars.
Auctioneer at Property Auction Services Rocky Bartolotto told Property Observer that buyer numbers for the weekend across his Sydney auctions dropped by one buyer week to week, however the percentage of registered bidders who actually make a bid at the auction was still considerably up.
"This traditionally is around 50% however at the moment is at approximately 70%," he said.
He noted that his auctioneers had detected a "handful of owners" had reserve prices set well above the agent opinion and what the buyer feedback has been throughout the marketing campaign.
"These properties seemed to have lower registered bidders to bid on auction day.
"In some cases this was evident with reserve prices set $100,000 over agent/buyer indication levels.
"It’s important for vendors that the feedback coming from agent/buyer is strongly considered for best outcomes."