An incredibly strong auction weekend set the scene for a remarkable auction in Sydney’s north at the weekend, when a house in the suburb of North Epping, 19 kilometres from Sydney’s CBD, sold for nearly $200,000 above reserve.
A combination of the interest rate cut and a greater volume of properties on offer saw the national clearance rate hit a high not seen since October 2009, according to RP Data Victorian housing market specialist Robert Larocca.
Twelve registered bidders pushed the price for the five-bedroom home at 9 Narelle Street, North Epping, to $1.616 million – a whopping $191,000 above the reserve price, according to Domain.
A local couple made the winning bid after going head-to-head with a Chinese investor, according to the reports, who jumped the price by $1000 increments over the phone.
Larocca told SmartCompany lower interest rates clearly had a connection to such outstanding results.
“That was the point [of lowering rates], in many respects. The Reserve Bank wanted people to open their wallets, or their bank loans, just a bit more,” says Larocca.
Larocca says if the market continues with such strength, we will likely see more exceptional results.
“But I think what’s more interesting is the overall national clearance. That speaks more about the market than those people who do get hundreds over their reserve,” he says.
The national clearance rate reached 77.7%, according to RP Data preliminary data, and Larocca says even if that is adjusted down, the result points to a very strong weekend.
“It was a remarkable outcome really,” says Larocca.
Sydney was again the country’s star performer, scoring an 87.8% clearance off 839 auctions.
It’s the third week in a row the Sydney market has delivered a result above 80%, but Larocca says this is not against the trend at this time last year.
Melbourne did not disappoint despite the higher volumes, logging a clearance rate of 74.9% off 1049 homes sold under the hammer.
Even Brisbane delivered a stellar result of 68.9% off 113 auctions.
Larocca says the coming weekend will be “interesting” to watch, as the weekend before a long weekend brings even more properties on the market.
“It will be interesting now the momentum has built significantly. Seeing as it was admittedly a slow start to the year,” he says.
“Buyers are clearly back out,” Larocca adds.