Far from winding down to the last few desperate sellers as it typically would in December, this year’s spring selling season is powering well into summer as buyers respond to a late surge in auction listings in Sydney and Melbourne.
In both markets the volume of listings is actually rising less than two weeks before Christmas. Sydney had 1006 homes up for auction compared with 867 a week earlier. Even so, the preliminary clearance rate held at a robust 76.5 per cent.
The previous week’s preliminary clearance rate of 80.1 per cent was revised down to 74.1 per cent on final numbers, according to CoreLogic.
The four-bedroom home at 83 Centennial Avenue in Lane Cove sold for $2.582 million.
In Melbourne the market expanded significantly as well, rising to 1131 listings from 899 a week earlier. The preliminary clearance rate was 73.5 per cent, compared with a preliminary rate of 73.6 per cent a week earlier, which was revised down to 67.7 per cent at the final tally.
In the smaller capital markets, Canberra recorded the highest preliminary clearance rate of 87.2 per cent across 113 auctions, according to CoreLogic’s tally. Adelaide achieved a preliminary clearance rate of 76.1 per cent from 96 listings, and Brisbane 64.1 per cent from 149.
Those numbers tell a story of sellers who have waited all year to put their homes on the market finding willing and waiting buyers, buoyed by record low interest rates and confidence in their future employment.
Veteran analyst Louis Christopher, of SQM Research, said that while overall listing numbers would be lower this year, the late rush could make the December quarter one of the strongest for volume in recent years.
“The numbers have actually been increasing in December, over and above the numbers in November,” he said.
“It’s playing catch-up. It’s vendors trying to make the sale they intended to do back in June, July, August, September.
“The sellers are just trying to wrap up their affairs before Christmas and hitting the market hard.
“The buyers are there quite clearly. There is massive volume going through. I would suggest it’s also occurring in the private treaty market as well.
“The clearance rates have held despite the gigantic increase in volumes. That does indicate the buyers are out in force. They are keen.”
That appetite is pushing up prices as well. Property prices rose across all capital cities last month, for the first time since January.
CoreLogic believes the full recovery in values, diminished during the COVID-19 downturn, could come as early as February.
SQM Research forecasts that prices could rise up to 11 per cent in Sydney in 2021 in its base case outlook, and Melbourne prices could increase as much as 6 per cent.
Sold above reserve
A four-bedroom home in Sydney’s Lane Cove sold at auction over the weekend for $2.582 million, above its reserve price of $2.575 million.
The bidding for 83 Centennial Avenue kicked off at $2.328 million, under the guidance of selling agent Tim Holgate of Belle Property Lane Cove.
“The market is still strong and many buyers are out there looking to find their perfect home,” he said.
“This property attracted a lot of interest because it’s beautifully renovated, it has a pool and a level backyard, a north-to-rear aspect and close proximity to Lane Cove village.”
Not everyone is buying the “spring into summer” thesis though. In Melbourne, a strong run of trophy home sales has come to an abrupt end, according to buyer’s agent David Morrell, of Morrell and Koren, as top-end buyers head off on holidays early.
“It just stopped dead in the water,” he said. “People have got Christmas on their mind. If they haven’t gone, they’re about to.
(Fin Review – Dec 2020)
In these uncertain times, please do not hesitate to contact Geoff if you need assistance.
PROSPERA FINANCE — Geoff Norman
MOBILE LENDER PROVIDING MORTGAGE BROKERING SERVICES TO NORTH SYDNEY | CROWS NEST | ST LEONARDS | GLADESVILLE — FINANCING HOME LOANS — FIRST HOME BUYER LOANS — CAR LOANS — LOW DOCUMENTATION LOANS — EQUIPMENT LEASE
