Sydney Auction Clearance Rates, People Spending Big On Properties!

Hi Everyone

Another weekend has passed and the auction clearance rates has shown that although we are still in a middle of COVID restrictions, people are still keen to buy property particularly in Sydney. As you may be aware, we are in the process of finding our new home trying to take advantage of the low interest rates like everyone else but the market is starting to ramp up. Like previously mentioned in past posts, with less overseas buyers/bidders, things are less hectic on the market but still pretty competitive. Sydney is leading the way with the clearance rate at at 89%.

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I actually wonder how people will cope with repayments when interest rates eventually go up. It can't stay low forever. Some even suggest that it will be negative interest rates.... is that even a thing? Non the less, people are snapping up houses left right and centre. In our area, properties are mostly on auction with only a handful up for sale and if they are, the prices are generally pretty high or something is wrong with the place. We've been looking for awhile and also talking to friends, many people are maxing out their borrowing power. We are more conservative considering we have 2 younger kids and don't want to take the risk and go all out. We are also considering if interest rates do go up, we don't want to be living on porridge to keep afloat.

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Quickly looking at the other big city in Australia, Melbourne. Their clearance rate isn't looking too bad. We had a friend there who bought a massive house (4 bedder with a nice yard) said auctions are also hot with some buyers with deep pockets. They had to go over nearly 30K of their budget to get their house which is still way cheaper than what we would pay in Sydney. Their median house price is 865k whereas in Sydney it is 1.22mil. You can see the difference clearly between the two cities.

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