Price of Sydney homes selling at auction drops 9 per cent

http://news.domain.com.au/domain/re...auction-drops-9-per-cent-20150803-giq1ir.html

The price of Sydney homes selling at auction plummeted 9.1 per cent over July, new figures from Domain Group indicate.

The price drops came as auction clearance rates trended down over the past month, with the previous two Saturdays the weakest of the year.

Domain Group senior economist Dr Andrew Wilson said the market was clearly on the turn and anticipation of banks cracking down on investors could be one reason for the drop.

"More than 60 per cent of the Sydney market are investors and we have seen a record number of properties auctioned in July, and that's going to continue," Dr Wilson said.

"And 800 homes are going under the hammer this Saturday - that's unheard of [in August].

"Are vendors rushing to the market?"

Dr Wilson said news of Sydney's million-dollar median house price may have made Sydney homeowners over-ambitious with their reserve prices. "Clearance rates are now 10 per cent lower than what they were in May," he added.

With 500 of the 644 results reported by Saturday evening, Domain Group put the clearance rate at 79.5 per cent. This was slightly weaker than the previous week's 79.7 per cent.

Dr Wilson said the median auction price for houses and apartments had dropped from $1,100,000 to $1 million over July but was still 16.3 per cent higher than a year ago.

 

The auction average/median is typically very volatile. The clearance rate has eased a little in Sydney and may get tested with over 800 scheduled this weekend, but given current clearance rates I'd expect prices are still rising...

 

Journalism at its best...

 

Andrew Wilson called the top of the market last winter as well . Eventually he'll get it right ....

Personally I'm uncertain as too what will happen , BUT , the Sydney market this winter is still stronger than last winter .

Cliff

 

More scaremongering.

They'll tryanything tobring down Sydney house prices. They'll never do it......it's a run away train andI I'm in the driver's compartment lol toot toot,

 

The uninformed would probably think that house prices have dropped a blanket 9.1%.

As Steven Ryan mentioned "Journalism at its best..." How can a journo report such absolute nonsense.

 

While RP Data says the opposite – it rose 3.3%

"Despite Domain Group's figures showing auction prices dropping in July, another researcher CoreLogic RP Data released figures on Monday showing Sydney dwelling values jumped 3.3 per cent over the month".


BUT they are not even measuring the same thing.

Domain is measuring auction prices only.

RPData is measuring auction + private treaty sales (ie the whole market) which is up 3.3%.

 

currently there are no train line to 2770 area, sorry Datto, you need to put your thumbs out on the Great Western Hwy...

 

Measuring and reporting month to month median price movements is sheer lunacy IMO. Quarter to quarter ......maybe??? Houses are not all the same like shares on the ASX.

 

But hey it doesn't stop PCers quoting super strong median price movements as justification when the price goes up!

 

Of course
And when prices flatten or fall a bit, we say it is a statistical blip and wait 6 months for a trend to be confirmed.

 

All stations to 2770!!

 

i think is because of the bank holiday on monday that there was a slump in the clearance rate in sydney. Let see next week? back to 83%

 

So FHBs and OOs are picking up where investors are leaving off and probably not going for the milllion dollar median.

 

That is true. I have seen members here/Somersoft go gaga over the rising auction median, now vilify news for reporting the drop

Having a dig at garbage journalism and then in another thread spruiking the Sydney price boom is a bit ironic.