Records keep falling in Sydney with yet another week, that’s 5 in a row, of 80+% auction clearance rates despite an increase in stock levels as we head towards the end of the winter market. Low interest rates are most likely behind the record buyer demand, with affordability levels sitting below the long term average.
Auction volumes are 32% higher in August this year compared with last year, signalling a rush for vendors to get their properties listed for sale while the boom conditions are still present in 2013. Typically during spring we see higher stock volumes anyway, so this year is tipped to see more transactions than the last.
What does this mean for buyers in the Sydney market? In the short term, expect to see some modest growth until the end of the year. The figures released recently by the ABS show a 2.7% median price increase in the June Qtr alone.