Sydney auction clearance rates soar as buyers battle for limited homes

Sydney homes have attracted massive competition at auction over the past week, with low stock and high levels of buyer demand pushing prices well over reserve.

Preliminary figures indicated about 80 per cent of scheduled auctions produced a sale in Sydney last week – a figure normally associated with a red hot market where sellers can call the shots.

Auctioneers confirmed that demand has heavily outstripped supply.

Ray White NSW head of auctions David McMahon said weekend auctions exceeded expectations.

“With the recent updates of the First Home (Guarantee) scheme we were anticipating competitive bidding in the sub-$1.5m range,” he said.

“But, in fact, we experienced competitive bidding across all price points today.”

Mr McMahon suggested that auction volumes were on the rise in the lead up to spring, with Saturday experiencing the highest volume of scheduled auctions for the new financial year.

This five-bedroom Castle Hill home sold for $250,000 over reserve.

Competitive spirit was exemplified in an auction at Oakhill Dr in Castle Hill, where Benson Auctions director Stu Benson said a “bidding war” took place.

The property sold for $3.5m, a price $250,000 over reserve.

Mr Benson said the buyers –– a young family of four –– competed with five other bidders over the course of the “hotly contested” auction.

According to Mr Benson, the Hills Shire has been a hotbed for auction sales.

“This is the strongest buyer activity I’ve seen here in the northwest for at least two years,” he said.

“This is my third weekend of a (personal) clearance rate of above 90 per cent here in the Hills Shire, with just over 30 per cent of properties listed for auction being sold prior to auction,” he said.

“Vendors who are setting reserves which buyers can reach are being rewarded by the competition of a low-stock market.”

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Stu Benson conducts the auction at 33 Oakhill Drive, Castle Hill.

Auctioneer Chris Scerri said sellers were looking to get the best price out of their homes while stock was still low.

“They’re the ones that have had the jump on the other properties that are coming onto the market,” he said.

“Stock levels are still low, but that’s certainly changing as we speak.”

An indicator of the current state of the market, Mr Scerri said 100 per cent of his team auctions lead to sales over the weekend.

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This home on Fitzwilliam Rd, Toongabbie sold under the hammer for $1.502m.

One auction on Fitzwilliam St in Toongabbie saw a sale $202,000 above reserve.

The entry-level three-bedroom, one-bathroom home sold for $1.502m.

Mr Scerri said the home was purchased by an elderly couple as an investment property for their daughter.

Across the market, Mr Scerri said the bidders were no longer waiting to get involved.

“Hesitation has disappeared,” he said. “People are flying out bids left, right and centre now.”

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This property on Edgar St, Auburn sold for $235,000 above reserve.

In Auburn, a home in the same family for 58 years sold under the hammer for $1.735m on Saturday.

The Edgar St home was sold by three siblings, whose family have owned the home since 1968.

One of the sellers, Paul, said it was the first auction he had ever attended.

“It was quite exciting and nerve-racking,” he said. “I was on the phone to my sister and she was getting excited when it got to $1.5m.”

There were 11 registered bidders for the auction, with six of them being active on the day.

Paul said it was an emotional day for the family.

“I was only eight years old when we moved in,” he said. “I had very happy family memories there, so it was a bittersweet sale but we are very happy with the result.”

The home sold for $235,000 over reserve.

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Paul (pictured centre-right) sold an Edgar St home belonging to the family for 58 years.

Another Castle Hill auction saw a three-bedroom home on Cecil Ave sell for $2.17m.

Scerri Auctions auctioneer Craig Robinson said 66 bids were placed during the auction, with the home selling for $270,000 above the owner’s expectations.

“Four buyers were fighting it out, then it just came down to two,” Mr Robinson said.

It is understood the buyer purchased the property as an investment.

Mr Robinson said the home was previously sold for $1,050,000 in 2019, less than half of what it sold for on the weekend.

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