There are 570 auctions scheduled across Sydney for the coming week (down 6 from the previous week), and a clearance rate of 71% (no change).
It was a very thin week of auction volume this week, as most of the campaigns that began after Easter are coming up for auction next week. Clearances remained steady and registrations were at 3.7 registrations per auction that went on. With the tight stock situation in a recovering market continuing to drive competition, the metrics are now consistent week in and week out with strong price conditions.
A recent increase in median house prices confirms that we are once again in a price growth market, as evidenced by the growth in median house prices. It is worth noting, that out of the last 20 auctions that Menck White Auctioneers have conducted, 14 have sold on auction day, and seven of the 14 have sold above the original reserve price. At the moment, about half of the time we go to auction, reserves are being exceeded on average. In comparison with where the market has been over the past 12 months, that’s a dramatic change, and it leaves little doubt about the fact that auctions are growing in strength at just the right time.
Taking a look at the forecast for the next four weeks, there still seems to be no sign of an increase in stock. In fact, the numbers look very tight through the month of May. It is an excellent time for sellers to take advantage of the extremely tight supply vs strong buyer demand. There is no doubt in my mind that this equation will change at some point. Stock is about to loosen up. This is an important message that agents should be conveying to sellers who are considering putting their property on the market: NOW IS THE BEST TIME.
Do not wait until everybody else goes on the market too!
