With a high volume of listings and buyer confidence in an uneasy state, all signs pointed to a blockbuster weekend of auctions in Sydney – for better or worse.
This week could be the second biggest March auction week in NSW since at least 2019, according to preliminary reports from PropTrack.
While forecasts indicated that 1690 auctions were set to take place across the state this week, they also suggested that this high volume would be met with a clearance rate of just 50-53 per cent.
And, according to PropTrack economist Anne Flaherty, it was possible the clearance rate could even dip below 50 per cent amid a shifting tide for homebuyers.
Ms Flaherty said it had been a “long time” since Sydney had recorded a clearance rate below half, outside of January and December post-Christmas.
This week was one of the highest auction volume weeks on record for March in NSW. Picture: Monique Harmer
For many vendors, auctions planned for this weekend came in a bid to beat a rare extended market shutdown that will effectively derail the auction market twice in April, with Anzac Day falling on a Saturday along with the usual market hiatus taking place during Easter.
Combined with this holiday blockade, there also may be a push to get properties to auction before further interest rate hikes hit buyers, with all of the four big banks predicting a cash rate rise from the Reserve Bank in May.
REINSW CEO Tim McKibbin said rate hikes were one of several reasons for a shake in the confidence of Sydney buyers.
“We suspect that the interest rate rise we had will not be the last one we see this year,” he said.
“We also always see that international turmoil has some impact on the market.
“When you put all those things together, there has been an erosion of the confidence in the market.”
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All four of the big banks have predicted another rate hike in May
According to Mr McKibbin, Sydney has seen low clearance rates as a result of this uncertainty.
This means a number of vendors – potentially as many as half – will either be delaying auctions, selling prior, changing strategies, or left with their keys in their hands as the auction passes in.
In this instance, Mr McKibbon said sellers need to “meet the market”.
“There’s an old saying that the market never lies,” he said.
“What the market’s telling you now is that the price of property now is less than what it was six months ago.”
Mr McKibbin noted that a vendor’s decision will always be driven by personal circumstances.
“I have a lot of sympathy for people in those positions, but the reality of it is that you have to meet the market if you’re going to sell.”
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REINSW CEO Tim McKibbin said there has been an “erosion of confidence” among buyers.
One area where selling agents aren’t worried by a lack of buyer demand is Sydney’s Inner West.
At auction this morning, 2 Roberts St, St Peters, sold under the hammer for $2.451m, clearing its reserve and $2m guide.
There were four registered bidders and three active for the three-bedroom home, which had been owned by the vendors for 30 years.
One of the vendors had relocated to Western Australia and was selling the home to divide up among her five children, according to Ray White Surry Hills senior sales executive Timothy Gorring.
“It was a really great result,” Mr Gorring said.
“The vendors are absolutely elated.”
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The home’s buyers were local builders, who are hoping to build two duplex-style homes on the 367 sqm block located just 3km away from Sydney Airport.
Despite market conditions, Mr Gorring said the Inner West was “pretty drought resistant”, owing to the price and location of properties.
Mr Gorring said there was still “a level of optimism out there” among buyers, particularly developers, downsizers and first home buyers.
“The only ones sort of pulling away are really investors, who are waiting for May and seeing what the capital gains tax does to them,” he noted.
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The vendor’s family celebrate the sale of 2 Roberts St with agent Timothy Gorring (centre). Picture: Supplied
In the current market, Mr Gorring said there are a couple of simple keys to success sellers can implement.
“Properties need to always be presented well,” he said.
“And, you need to have flexibility in the times that you show buyers at the moment.”
Elsewhere in the Inner West, 55 Buckland St, Alexandria claimed $2.9m at auction.
The three-bedroom terrace was guided at $2.5m.
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55 Buckland St, Alexandria
In the Lower North Shore’s McMahon’s Point, two apartments across the road from each other were sold by Stone Crows Nest selling agent Victoria Liu.
Both 11/188 and 9/161 Blues Point Rd sold above reserve under the hammer on Saturday morning, for $930,000 and $1.51m respectively.
Auctioneer Edward Riley said the results “reinforce the enduring hierarchy within Sydney’s real estate market”.
“Tightly held, lifestyle-driven enclaves continue to outperform, largely insulated from broader volatility,” he said.
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188 Blues Point Rd, McMahons Point
At the affordable end of Sydney’s affluent Eastern Suburbs, 5/203 Birrell St, Waverley sold for $185,000 over reserve at $1.585m.
Eight bidders were registered for the auction, five of which were active.
Angus Gorrie of Ray White Eastern Beaches said the market has “certainly tightened up” in regards to buyer activity.
“But there’s still buyers out there,” he said. “Eight registered bidders today is a really good sign.”
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