The weekend could still be considered a strong one for sellers, but record numbers of May listings have clearly acted to cool the red-hot autumn results of recent months.
Fittingly Sydney is heading into winter on a cooler note, recording a clearance rate of 75.9 per cent on Saturday which was lower than the previous weekend's 76.9 per cent. It was higher than the 72.8 per cent recorded over the same weekend last year.
Sydney recorded a run of lower clearance rates over May, with no weekends making it over the 80 per cent mark, unlike the previous three months when these boom-time results were plentiful. Weekend clearance rates averaged 76.4 per cent over May which is down on the 79.5 per cent averaged over April.
Recently lower clearance rates have clearly been influenced by a record-breaking flood of listings deluging the local market as sellers rushed in to take advantage of the still robust market conditions. The 836 homes listed for auction on Saturday was lower than the previous weekend's 872 auctions but well ahead of the 573 auctions over the same weekend last year.
Sydney has averaged 735 auctions over each weekend in May, which is clearly a record for the month, with the previous high of 702 set over May 2015. The winter market begins next weekend with a June record of nearly 800 homes listed for auction.
Sydney recorded a median auction price of $1,290,000 on Saturday, which was slightly lower than the $1,300,000 the previous weekend, but 1.6 per cent higher than the $1,270,000 recorded over the same weekend last year. A total of $521.0 million was reported sold at auction in Sydney at the weekend.
Although early signs are emerging of an easing of the booming Sydney housing market, the underlying drivers of housing market activity remain positive. Surging migration, a chronic shortage of homes and a strong local economy will ensure demand remains ahead of supply.
Recent national economic data has been largely underwhelming, yet the Sydney economy continues to charge ahead. Latest ABS data reports that the Sydney jobless rate fell to just 4.4 per cent over April, which was well below the 4.8 per cent recorded over April last year. The latest April result was also the equal-lowest recorded since August 2012.
The Sydney economy has also added 18,905 jobs to the local workforce over the past year.
Regional results were lower at the weekend, with only three areas recording clearance rates above 80 per cent, although there was some consolidation between the high and low rates.
The inner west and the lower north remained in boom-time mode with clearance rates of 89 per cent and 83.1 per cent respectively. Canterbury Bankstown was next highest with 80 per cent followed by the city and east 77.9 per cent, the north-west at 77.8 per cent, the south at 73.1 per cent, the upper north shore at 73 per cent, the central coast at 71.4 per cent. The northern beaches was unusually low this weekend with 68.8 per cent followed by the west at 66.7 per cent and the south-west with 60.5 per cent.
Notable sales reported at the weekend included:
- A four-bedroom home at 60 Newcastle Street, Rose Bay, sold by Belle Prop Double Bay for $6,000,000,
- A five-bedroom home at 63 Mandolong Road, Mosman, sold for $5,300,000 by Simeon Manners,
- A five-bedroom home at 7 Jellicoe Street, Balgowlah Heights, sold by Clarke and Humel Property for $5,200,500,
- Another five-bedroom home at 44 Monash Parade, Dee Why, sold for $4,600,000 by Novak
The most expensive property reported sold at auction was a two-bedroom unit at 2502/2 Phillip Street, Sydney, sold for $8,715,000 by Morton Circular Quay. The most affordable property reported sold at the weekend was a two-bedroom unit at 6/2 Forbes Street, Warwick Farm, sold for $340,000 by Martin Hill Gardner.
