Auction Clearance Rates Still High
Photo credit to: Big 4 Holiday Parks
Fears of COVID-19 do not appear to be capable of slowing down our thriving property market. Homebuyers fueled by record low mortgage rates, improving economic conditions and a sense of scarcity among stock levels have pushed auction clearance rates to previously uncommon heights.
According to Core Logic's latest figures, auction clearance rates have returned to 72 percent, up from 60 percent in December, despite the fact that there is 40% more supply of property in Sydney than this time last year. A large 12% jump from that of the December quarter last year.
This appears to be especially true on the Northern Beaches, where recent sales have seen Manly and North Manly houses continue to break records. 142 Wyadra Ave North Manly for example, sold for $5,250,000, after only 5 days on the market.
According to CoreLogic's Quarterly Auction Market Review, 42,918 properties were auctioned off across the combined capital cities in the three months ending December 2021. National dwelling values increased 22.2 percent, the highest increase since 1989.
Overall, the estimated value of residential real estate in Australia increased from $7.2 trillion at the end of last year to a record high of $9.4 trillion. (Source: CoreLogic’s annual Best of the Best 2021 report)
Why the rise?
A scarcity of inventory appears to have played a role in clearance rates reaching all-time highs; not to mention the effect of remote work trends that had turbocharged regional property values.
There appears still not enough property on the Northern Beaches to satisfy the continuing demand from people returning from overseas and people moving from other parts of Sydney to experience our unique lifestyle.
Cash-rich buyers stranded in Australia due to the coronavirus pandemic were also looking to expand their portfolios with waterfront property.
According to CoreLogic's Research Director Tim Lawless, the surge in auctions was caused by several factors, including some catch-up from the September quarter, when the largest auction markets were weighed down by lockdowns, as well as a pickup in activity following the seasonally slower conditions of winter.
“The large number of auctions held through the December quarter also reflects the strong selling conditions that were present, which motivated vendors to capitalise on strong buyer demand and the significant rise in values seen through the pandemic,” he said.
What can you do?
The high demand for waterfront properties seems to be insatiable, and continues to persist despite the recent COVID-19 cases as well as rising property values.
Waterfront property prices are skyrocketing, those looking to buy a home with uninterrupted views of an ocean or river may end up paying twice as much.
These properties are now worth more than those that are not perched on the water’s edge.
As a homeowner, this is an ideal opportunity to have your property appraised and put that equity to work for you. You can use your home’s value to get the cash you need for a home renovation or new property acquisition.
That is something we would be delighted to help you with. A bank valuation will not cost you anything, and you might be surprised at the options available to you.
Don’t wait. You could be putting that cash to work for you today.