Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 9 June 2015

Auction clearances through 90 per cent in Sydney

Sydney to $1 million

I recently wrote an article for Business Insider on why I believe that Sydney's median house prices are headed to $1 million.

From what I have seen in Sydney the market appears to be accelerating towards this level with short shrift.

At the weekend, CoreLogic-RP Data reported a preliminary national clearance rate at 79.2 per cent, up from 78.9 per cent a year ago.

Sydney recorded a thunderous preliminary result of 90.1 per cent from a lower denominator this weekend.

 Preliminary auction clearance rates are now as high as we have seen in Sydney.
No stock

CoreLogic-RP Data's Cameron Kusher has produced some cracking charts which cut to the core of the issue, most notably a dearth of quality stock on the market.

But even these charts somehow seem to understate the magnitude of the present imbalance.

In the popular areas where people want to live and invest, listings being snapped up in a frenzy.

New listings are low enough, and total listings are even worse in Sydney, well down on a year ago.

Total listings peaked at above 40,000 in early 2012, but have now plummeted towards around half that level.

For reasons I can't quite fathom some commentators claimed that Sydney prices have been falling through the month of May. 

They need to get out from behind their laptops and into the real world. 

It's a property market mania in Sydney right now, and a very, very difficult environment for buyers.