Sydney Registers Sub Par Auction Clearance Twice
Andrew Wilson writes a piece for the website Property Update wherein he talks about Sydney’s clearance rates that have been below 80% for two consecutive weeks. This is a first for this year. Exactly at this time last year, Sydney was in the midst of frenzied buyer activity which had resulted in extremely high auction clearances.
Fall in clearance rate
The fall in auction clearance rate can be put down to various factors, argues Wilson. It is the mid-winter whimper Sydney is so used to having (a trend which was clearly bucked last year). Second, sellers perceive present times as the boom phase of the market and are setting high expectations; this is not working for the buyers- thus a fall in clearance.
800 auctions targeted for 8th August
800 auctions targeted for 8th August is likely to put the market under the hammer and whether it passes the winter test or not remains to be seen. The Upper North Shore, Inner West and Lower North are still doing quite well but it is the North West, the South West and the Central Coast whose performances need to be taken with a pinch of salt.
High investor activity
Investor activity has been singular over the last few months and increased rate of lending is unlikely to affect the investors willing to piggyback on high capital growth for offsetting higher mortgage costs.
You can read the original article here.
Investors unlikely to be budged by increased mortgage rate
The investor mortgage rates have increased but how is it ever going to affect the investor fraternity? What may increase in terms of lending rates can be easily compensated by what they are set to make through capital growth. Perhaps–and on a different note–their toughest test lies in the reforms which may be made to negative gearing if either the Labour proposal goes through or some other criticism of gearing is being heeded.