High clearance rates and buyer confidence driving inner west property market
Record low interest rates and the prospect of greater access to finance is driving a recovery in the inner west property market.
The growing optimism from buyers is seeing eight out of 10 homes now selling either prior or at auction every week in the inner west.
Over the past five weeks, the inner west has had an average clearance rate of 82.60 per cent, according to CoreLogic’s latest auction data.
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This past weekend had the best clearance rate over the five week period with 87.87 per cent of all stock selling, while the weekend of June 24 had the lowest clearance rate of 76 per cent.
The renewed confidence appears to not only be sending clearance rates north, but also property prices.
REA data shows for the second month in a row growth to the inner west median sale price, with a 1 per cent jump in June. This is an improvement from May’s 0.1 per cent increase. The 1 per cent growth is the best increase in the Sydney region.
Richardson and Wrench chief auctioneer Peter Baldwin said inner west buyers are not only more confident but feel the market isn’t going to drop anymore.
“Buyers are eager to get in now as no one wants to miss out on the bottom,” he said.
“I do believe we’ve hit the bottom of the market, and this has come more than a year ahead of when we expected prices to stop falling.”
Mr Baldwin added that while this time of year traditionally had high clearance rates due to stock shortages, this time it appeared to be different.
“While it is not uncommon to have high clearance rates during winter because of stock levels, this year a shift in buyer sentiment is playing a huge role seeing more homes sell,” he said.
Belle Property — Strathfield principal Norman So said the positive shift in the market is definitely flowing on to auctions.
“A few months ago we were only getting two or three registered bidders, and now we are easily getting double that,” he said.
The standout result from the weekend was the sale of 9 Heydon St in Enfield that smashed the suburb record and sold for $3.1 million after seven days on the market.
The sale was through Richard Matthews Real Estate’s Richard Baini and Matthew Everingham and was $400,000 above the guide.
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