Auctions are the action in Sydney as home values take off – especially in the past 3 months

40,000 homes in total sold in Sydney over the past 12 months. That is an average of 769 each week. Consider this - last week alone 699 homes went to auction, and 569 sold, or 81%. And September is not a peak selling month (although Spring has arrived early – our hottest September on record). Then consider that in the whole of June just 362 homes were auctioned – that is an average of 86 per week.
Why the jump of 700% in auctions? See the chart opposite. Sydney has had 8% growth in home values in the past 12 months but 60%+ of this has been in the past three months. Herd mentality has taken over and sellers are rushing to auction to capitalise on the fear of missing out. Believe it or not, the traditional auction cycle of four weeks is even being reduced by some vendors to just two weeks to capitalise on the rush.
But this is Sydney. Check Perth – its figures indicate it went through the same price rise frenzy earlier this year and now has settled down – so perhaps it is a bubble, one that unfortunately has not inflated for Brisbane and Adelaide.