One popular Sydney area is seeing auction homes sell in just 22 days
The main selling season of the year is upon us but a shortage of properties to choose from is leading to super-quick selling periods and high auction clearance rates.
Sydney’s northern beaches has one of the highest auction clearance rates in NSW at more than 89 per cent, according to CoreLogic, and it also has the shortest number of days on market. Auction properties on the beaches are taking just 22 days to sell.
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Agents are saying in this market it makes sense to take a property to auction as it is likely to sell well and quickly.
The key to fast auction sales is the low number of properties available coupled with the high demand, they said.
This week there are 786 homes on the market on the northern beaches, compared to 1036 this week last year and 888 this week in 2017.
A tri-level house in Balgowlah sold for $2,903,000 on Saturday — more than $100,000 over its guide — and eight contracts were handed out on the Seaview St sale.
Mark Connor, of Cunninghams Real Estate, said there were 97 inspections of the house and a real shortage of good quality properties for sale.
“I expect more properties to come but perhaps not as many as everyone is hoping for,” he said.
Another five-bedroom house, in Beacon Hill, also sold for hundreds of thousands of dollars above its guide. The feedback given to prospective buyers was $1.5 million to $1.6 million but the house at Lanai Pl, on 613sqm of land sold for $1.738 million.
Jeff Johnson, of Upstate, said a strong offer was made very early on but the vendors decided to take the home with pool to auction, and they are glad they did.
“Some auction properties are selling early which explains that low days on market figure,” Mr Johnson said.
“In this market I would always recommend taking a home to auction,” he added.
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Mr Johnson also said there had been so much bad news about the market vendors have been reluctant to sell and now they can’t emotionally and practically get their properties prepared for sale.
“If you are not on the market in the next few weeks you won’t be settled by Christmas. I think there will be an increase in stock though in the new year,” he said.
Stuart Bath, of Skyline Real Estate, said as buyer numbers swell it made sense to sell by auction.
“We’ve always said an auction really only works well when you have multiple buyers competing for a home, and this market is starting to deliver this scenario,” he said.