Booming auction activity in Sydney at end of January

74Sydney’s auction season has sprinted forward, according to a February 2 article from Australian Property Monitors (APM).

The Sydney property market has been hot throughout 2013, and if the most recent clearance rates are anything to go by, it will continue to be so.

High clearance rates

Activity during the final week of January resulted in an 80.3 per cent clearance rate – a figure in the same range of the September to November boom.

High clearance rates may signal strong demand for properties in the area, which could provide current sellers with some encouragement.

Strong growth

Sydney’s average house prices are increasing strongly, which could attract more investors into the local property market.

According to APM, the average house price increased by 6 per cent during the December quarter.

This increase is the second biggest quarterly growth recorded, according to APM. Sydney’s rising house prices was a commonly discussed topic of 2013 and investors will be interested to know what areas are proving to be hot property.

Other information from APM in the Housing Market report for January 2014 stated the Upper North saw a 19.8 per cent year-on-year change in median house prices to the end of 2013. This occurred while Sydney’s Inner West experienced a year-on-year increase of 18.9 per cent.

It will be interesting to see where the market heads in upcoming weeks and months, as more and more homes are set to be auctioned. According to APM, Sydney house prices will rise by 5 to 7 per cent this year.

However, with competition between banks and low interest rates, it seems as though buyer demand will remain high.

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