Motoring By At A Million Dollar Pace

Results for week ending July 19

Sydney auction clearance rates remained strong at 82.6% whilst Melbourne’s clearance rates have softened slightly from recent trend to 74.9%

The Stat

Auction clearance rates report the number of properties sold compared to the number of properties offered up for auction. A figure of 80% and above indicates a strong performance. The real estate industry aims for 70%.

The Graph

The Numbers

The Analysis

Auction clearance rates in Sydney remain strong at 82.6%. This strength continues to be projected through the market with auctions clearing at a median price of $1.1 million for the weekend.

Melbourne’s clearance rates softened slightly to 74.9%. However the market’s fundamentals remain strong. Supply was up 10% on last week and 20% on the same time last year giving this slightly softer result a proper context. An increase in million dollar suburbs during this period shows the market strength being felt through Melbourne.

What It Means For Investors

With the market motoring along at million dollar pace it can be a daunting task finding a property to invest into. We can look in fear at a market going past us or be paralysed by the fear of a bubble waiting to burst all over us. A key for us as investors is to remain calm and carry a big stick. I know I’m mixing metaphors but I think we can agree it’s important not to get caught up in market hype but to be ready to strike when our goals and opportunities align. In a helpful read, propertyinvesting.com mentor Jason Staggers relates one of his own stories of how he overcame investment failure to become a prudent property investor.

By Andrew Stow

Andrew undertakes residential property developments and has been a moderator for propertyinvesting.com for five years. Andrew’s business background is in outsourced customer service where he was a statistical analyst and workforce planner servicing programmes for top 100 companies.