Auction clearance rates - is Sydney overheated already?

luce.rocks

luce.rocks

We're in the early stages of getting finance together and would like to avoid buying near the top of a cycle.

With clearance rates at 81% overall in Sydney I was hoping the folks who have been around for a few cycles in Sydney can give me some idea of whether these rates indicate the start of a longer period of strong growth, or that we've already missed the boat and need to look further afield.

Second question is whether the Blue Mts tend to follow Sydney? We've noticed in the past that the central west tends to get a boost a year or two after people get priced out of Sydney, does the same thing happen in the Mts?

Cheers, Luce
 
Shortage of stock

We got many posts that West Syd was rising and shortage of stock, is this happening everywhere, just curious.
 
Yeah, I've seen all the posts on western Sydney.

According to Domain lift-out today, auction clearance rates are:

West 69%
Canterbury/Bankstown 71%
South West 67%
North West 73%
South 87%
Upper NS 73%
Nth Beaches 78%
Lower NS 86%
Inner West 74%
City and East 85%

For an average of 81%

Just wondering how long these sort of rates usually continue. I haven't heard too much hyperbole on the telly, so I'm guessing it's not the top of the cycle yet but by the time we get finance together it might be and we might be better off looking further out?

I like 'buy under market value and add value' as a strategy and I don't like my chances of buying under market value with things so hot. But if there's still another year or two of upside maybe it would be ok to buy at market value now?

Still I'd rather buy under, add value AND get a boost from a rising market too. (Duh, of course, who wouldn't!)
 
Sydney is hot at present, there's no denying it. It has been since at least Dec '12. IMO there is plenty of steam in it yet for all of this year and all of next year at least. Demand does not dry up overnight with the low numbers of listings on the market.

6 months after Sydney moves, the areas within a 1 hour commute - W'gong, Blue Mnts, and Central Coast follow due to the ripple effect. We are seeing this right now too.

The media moves slowly - they'll be reporting it in 6-12 months just as we probably reach close to the next peak. Too late then.
 
Propertunity said:
Sydney is hot at present, there's no denying it. It has been since at least Dec '12. IMO there is plenty of steam in it yet for all of this year and all of next year at least. Demand does not dry up overnight with the low numbers of listings on the market.

6 months after Sydney moves, the areas within a 1 hour commute - W'gong, Blue Mnts, and Central Coast follow due to the ripple effect. We are seeing this right now too.

The media moves slowly - they'll be reporting it in 6-12 months just as we probably reach close to the next peak. Too late then.
Click to expand...

Cheers Prop, I thought as much but good to hear a professional agree. Need to share kudos around before I give you more :)
 
Propertunity said:
Sydney is hot at present, there's no denying it. It has been since at least Dec '12. IMO there is plenty of steam in it yet for all of this year and all of next year at least. Demand does not dry up overnight with the low numbers of listings on the market.

6 months after Sydney moves, the areas within a 1 hour commute - W'gong, Blue Mnts, and Central Coast follow due to the ripple effect. We are seeing this right now too.

The media moves slowly - they'll be reporting it in 6-12 months just as we probably reach close to the next peak. Too late then.
Click to expand...


Yep, bang on 100%....! Starting to experience the surge now out in the Penrith LGA. Amazing how the media haven't caught on yet but I guess for those of you, including you Alan, that have seen this all before many times, it's probably predictable :p

Jack
 
Propertunity said:
6 months after Sydney moves, the areas within a 1 hour commute - W'gong, Blue Mnts, and Central Coast follow due to the ripple effect. We are seeing this right now too.

.
Click to expand...

Yes good prices being achieved in Gosford and Wyoming on the Coast. There is low vacancy rates and good yields. Houses and apartments in the low 300s are selling like hotcakes with rental yields of 6-6.5%
 
JT7 said:
Yep, bang on 100%.... I guess for those of you, including you Alan, that have seen this all before many times, it's probably predictable :p Jack
Click to expand...

Jack, it really is predictable just like the appearance of:
1. Foreign economists predicting the Australian market is over-inflated
2. The newbies posting threads on "how high can prices go, if wages don't go up?"
3. The D&Gers start talking "bubble"
4. Overseas posters start posting charts on how bad it has been in UK/USA/Japan or wherever, and saying that Australia can't stay this good forever, the crash is coming :rolleyes:

same same
 
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