Signs of Transition in Sydney Auction Market: Is the Seller’s Market Fading Away?

After a strong start to the year for Sydney auctions, there are now growing signs that the market may be transitioning away from being solely in favor of sellers. This week, close to 900 homes were scheduled to go under the hammer in Sydney, but the results were more varied than in previous weeks when clearance rates were close to 75 per cent, indicating a strong seller’s market.

Agents have noted that there has been an increase in listings, which has spread buyers across more properties, easing competition at auction. Damien Cooley, director of auction house Cooleys, mentioned that while A-grade and B-grade properties are still selling well, C-grade and D-grade properties are struggling unless they are competitively priced.

Vendors with unrealistic expectations are also being punished, with agents often relisting properties with revised price guides if the original was too high for the current market conditions. This trend had been rare over the last year due to a tighter supply of housing.

Different auctioneers have varying opinions on whether the prospect of interest rate cuts later this year is helping or hindering sales. Some buyers are reportedly holding back, waiting for more certainty about how the Reserve Bank will move.

Despite the market showing signs of transitioning to a more balanced state, there were still notable sales under the hammer. Properties like a Lane Cove house and a Surry Hills terrace sold for impressive prices, while others failed to attract bids or meet the seller’s reserve.

Quirky sales were also observed, such as a two-bedroom semi near Maroubra Beach selling for well over reserve after attracting five bidders. Post-auction negotiations also led to interesting outcomes, like a buyer securing a four-bedroom house in Quakers Hill despite initially coming second at the auction.

Overall, while the Sydney auction market may be shifting towards a more balanced state, there is still activity and interest from buyers. With new listings increasing, more buyers are expected to have a wider range of options, which could lead to more competitive negotiations and potentially more unusual outcomes.