Auctions spring forth: Pete Wargent
Pete WargentDecember 17, 2020
Preliminary auction clearance rates ticked back on the first weekend of spring according to CoreLogic-RP Data.
Sydney's auction clearance rate should now begin to track lower than its equivalent prior year figure, but remains elevated at this juncture 78 per cent.
Generally strong results were seen outside Sydney and Melbourne as per the below graphic, albeit from the usual small samples.
Speeding ticket
That the Sydney market must eventually slow is not in question.
After all, both Residex and CoreLogic-RP Data have recorded house prices growing at an absolutely cuckoo pace of +7.5 per cent over the last quarter (a totally bonkers rate of growth implying that prices would double within the next 10 quarters).
The real questions are how well the spring auction market can hold up in the face of likely higher stock volumes and what happens when the growth cycle eventually comes to an end.
It's worth noting that while outer suburban auction rates may have tailed off in Sydney somewhat, many of the inner suburbs are still recording blistering results.
The inner west (88.6%), eastern suburbs (84%) and North Sydney and Hornsby (83.6%) regions each once again recorded supremely high preliminary clearance rates.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.
His latest book is Four Green Houses and a Red Hotel.
Pete Wargent
Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.