Sydney Property Market Update 08/12/2018
The Auction results are in for last month and make for sobering reading.
I haven't seen figures that poor across the board in my entire 23 year sales career.
The most noticeable trend that you can't see, is the increasing number of buyers interested in bidding at an Auction yet are unable to due to their finance not being finalised in time. I'm having numerous weekly conversations with brokers pulling their remaining hair out over the amount of information being requested by the banks as well as how much longer it is taking to obtain official formal approval. We are now reaching the point where a standard four-week Auction campaign may be too short for a buyer to be able to do an unconditional deal.
This is reflected in the results above, where you can see that out of a combined total of 39 Auctions over the three suburbs only four were sold prior.
This is no surprise to me at all based on our own office's recent experiences. For example, we recently sold 16 Garnet Street Hurlstone Park five days after it passed in at Auction. There were no registered bidders but immediately afterwards two buyers who were spectating and another who wasn't approached us to negotiate a price over the weekend. All of them referenced their inability to obtain approved finance in time as the sole reason they chose not to bid.
I will watch the December figures very closely to see if this issue continues to affect clearance rates.
The Reserve Bank kept interest rates on hold once again this month and I'm already reading those dreaded "predictions" that 2019 could be a third year straight where no changes are made at all.
Only time will tell.
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