Sydney clearance rates lower than expected
The large number of residential properties listed for sale may have had an adverse impact on the recorded clearance rate over the weekend (December 10 and 11), according to an industry expert.
Over 600 homes were put up for auction over this time - however, a large number were withdrawn and the resulting sales only numbered in the mid-200s, producing a clearance rate of 50.1 per cent.
Dr Andrew Wilson - senior economist for Australian Property Monitors - indicated in his article in the Sydney Morning Herald (December 12) that there had been a "downward trend" in clearance rates over the last few weeks.
He said that the spring season had not delivered its usual bounty of high auction rates, despite a number of factors that combined to produce some excellent incentives.
These included stamp duty concessions for first home buyers as well as a number of vendors "keen to sell" before the end of the year.''
However, Wilson was quick to point out that this situation could reverse in 2012, with recent rate changes by the Reserve Bank of Australia being passed on to mortgage holder by a substantial amount of lenders.
Wilson wrote: "Despite a relatively quiet spring selling season in Sydney, a platform for increased buyer activity next year is gradually being established."