Clearance rates are a statistic that vendors hold in high regard, perhaps increasingly so considering that Sydney experienced a quarterly price reduction of 1.9 per cent to $1.17 million during the three months leading up to September.
September was a turning point for Sydney, when house prices produced the second-worst performance of Australia’s major cities for the quarter. It fell just behind the volatile Darwin market, which moved backwards by 3.6 per cent.
Moderating prices are likely to spark an element of nervousness among spring vendors who are mid-way through an auction campaign. However, once the statistics are drilled down, we see that the impact on Sydney regions has varied.
The number of houses sold at auction in Sydney declined 18 per cent in the September quarter compared with the June 2017 quarter. This fell across all regions apart from the Central Coast. The number of houses sold under the hammer during this period is still 6.4 per cent above the results from the September 2016 quarter.
Annually, all Sydney regions experienced a boost to the volume of houses sold at auction, apart from the city and east, the inner west and the upper north shore.
The highest clearance rate was in the northern beaches and the city and east at 70 per cent. The northern beaches was one of only two regions to reach a higher clearance rate compared with the June 2017 quarter, rising marginally from 69 per cent.
The central coast also recorded an improved quarterly clearance rate, from 52 per cent in June to 53 per cent in September.
Relatively robust clearance rates were recorded in the lower north shore and the inner west, at 68 per cent and 67 per cent, respectively, although that was significantly lower than the 82 per cent and 86 per cent achieved last year.
The lower north shore had the highest median price at $2.4 million, based on properties auctioned throughout the September quarter.
If 70 per cent is the benchmark to determine a seller’s market, technically only two regions fall within this category: the city and east, and the northern beaches.
The upper north shore (63 per cent), the south (62 per cent), Canterbury Bankstown (59 per cent) and the West (57 per cent) recorded lower clearance rates compared with last year’s September quarter.
The south west had the second-lowest auction median price at $814,000, scraping by with a clearance rate of 50 per cent.
This story Administrator ready to work first appeared on Nanjing Night Net.