The number of Sydney properties up for auction reached a four-year high in October, according to RP Data, with over 2,000 homes being offered for sale.
“In terms of numbers of properties offered for auction and total value of sales achieved, October 2007 was the strongest month since November 2003,” confirmed RP Data research director John Wakefield.
70% of those properties sold under the hammer for a total of $1.132bn – a huge increase on the October 2006 figure of $675.3m.
On a monthly basis, the clearance rate fell by 2% from the September level of 72%, and was 4% down on the 74% high during August.
“There are early signs that the current residential cycle has peaked,” said Wakefield. “It appears that fear of an interest rate hike started to bite in September.”
The median price for a freestanding house sold at auction in Sydney was up 6% to $793,000 over the last year, but Wakefield thinks these glory days may not last too much longer.
“In the current heated market, vendors have been selling their properties with expectations of higher prices and buyers have, to date, been willing to meet those expectations,” he said. “The tide may be about to turn.”
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