Another warm weekend has seen buyers turn out in droves to compete at auctions across Sydney. With almost 400 auction results recorded for the 31st of August an impressive clearance rate of 84% has been noted. This has lifted the monthly average for August 2013 to 82%; the highest we’ve observed in recent memory.

With such a high clearance rates the prices achieved for many sales have been elevated. Invariably, hopeful buyers are having to increase their bid limits in order to remain competitive and be in with a shot of securing the property at Auction.

Intelligent Property Services (IPS) recently had a feature article published in the Property Observer. The article centred around the disparity between agent price guides and the actual sales price achieved – a source of annoyance and frustration for many buyers. In the period between late February and July alone, IPS’ findings showed a disparity of 12.19% between price guides and actual results in the traditional Sydney auction hotspots. Naturally, this is proving particularly frustrating for buyers who are missing out repeatedly – especially after paying for contract reviews, strata / pest / building inspection reports, not to mention the time and energy invested on each occasion.

IPS has observed a rising trend in buyers paying ‘fed-up’ prices to secure the property in order to put an end to their drawn out property hunt, often knowing full well they are paying well above market value.

Click here to read the article – IPS: Property Observer feature article

With the federal election set to occur in just 3 days and the prospect of a new government increasingly likely we expect the property market to be buoyant, at least, through to the Christmas period. Traditionally, there is a slight hiatus in stock on market in the leadup to an election followed by an increase thereafter. This year, with historically-low interest rates low and demand outweighing supply,  clearance rates are expected to remain high.

 

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