Source: MELISSA HEAGNEY, SENIOR JOURNALIST, DOMAIN
Sydney's auction clearance rates are at their highest level in more than two years following the weekend's results.
The preliminary clearance rate sat at 78 per cent after 267 auctions were held and 184 results were reported.
While experts believe this indicates a definite turn in the market, it comes with a caveat. The number of auctions compared with previous years is down by 25 per cent.
Domain economist Trent Wiltshire said the results were a sign the Sydney auction market was near a turning point.
“Clearance rates have averaged 67 per cent over the past four weekends, which is the highest level in over two years,” Mr Wiltshire said.
“Other indicators also point to the market picking up: more people are attending open for inspections and more people think house prices are going to start rising.”
Mr Wiltshire said with Sydney prices predicted to be at their lowest point since the boom by the end of the year, vendors were reluctant to sell unless they had to.
“We might see some more activity in spring, but I don't think we'll see a big increase in auction numbers until prices start increasing,” he said.
A lack of houses on the market is not only driving up the clearance rates, it's also resulting in properties selling well above their reserves.
A five-bedroom, three-bathroom home at 19 John Street, Cronulla,soared $320,000 above its reserve, selling for $2.22 million.
Selling agent with Newton Real Estate, Ian Gray, said there were five registered bidders among a crowd of 50 people at the auction.
Gray said auctioneer Andrew Cooley had called the sale the highlight of his weekend.
“It was the highlight of mine, too,” he said. The buyer was a local builder looking to renovate and live in the home.
Another home which sold at least $200,000 above reserve — though the agents were tight-lipped on the reserve — was the sale of a four-bedroom, three-bathroom home at 50 First Farm Drive, Castle Hill.
Karl Anthony, of Ray White Castle Hill, said the home sold for $1,605,000 under the hammer with a young family the winning bidders.
They were living in Beecroft and wanted to move to Castle Hill to be closer to public transport, Anthony said.
He said there 25 registered bidders fought it out for the home.
“It really was an amazing auction and with more than 160 people in attendance, you literally couldn't move on the front lawn,” he said.
“The buyer only saw the property for the first time and literally only turned up because they were drawn by the size of the crowd.”
A family were also the buyers of a five-bedroom, two-bathroom home at 2A Collingwood Avenue, Earlwood, which soared $75,000 above the reserve. The property sold for $1,675,000 under the hammer.
Ray White Petersham director Nicholas Arena said there were 10 registered bidders battling for the keys.
“You can feel the market is starting to move in the right direction, and with confidence rising among buyers again, you can see people willing to make their move,” Arena said.
A record for the street was set when 25 Campbell Street, Abbotsford,sold for $4,065,000
Selling agent Damon Parker, of Cobden & Hayson, said though the property wasn't beachside, it was still an immensely popular address for buyers.
“The reason why it was so popular is because nothing of this quality has sold in the area since the last time this home sold,” Parker said.
The home was last on the market in 2012, selling for $1.95 million, public records show.
Parker said the buyers were a family upsizing to the five-bedroom, three-bathroom home.
Elsewhere, a first-home buyer snapped up a three-bedroom, Victorian terrace home at 33 Charles Street, Stanmore, for $150,000 above the reserve, making the winning bid of $1.4 million.
LJ Hooker Sydney auctioneer Ben Mitchell, who sold the property on behalf of LJ Hooker Newtown, said the sale was well above expectations.
“It was an absolute cracker,” he said.