Many thought the auction market for property in NSW could not surpass the highs of 2014. However the start of 2015 experienced no signs of a Christmas and post-holiday hangover but rather a rally of significant proportions.

McGrath auctions scheduled in NSW for February 2015 were up by 28% on the corresponding period in 2014.   For the final two weeks of February this year (the traditional commencement of the auction season) we saw our significant increase in our company’s Eastern Suburbs auctions.  Sydney’s eastern suburbs had a 69% increase on last year’s auction numbers.

The best indicator of a strong auction market is high clearance rate percentages. Clearance Rates have been strong across NSW and Sydney which has seen four consecutive weeks above 80%. Vendors in Sydney’s southern suburbs were more eager to start campaigns earlier following a buoyant finish in the lead up to Christmas.  We saw more auctions booked in the St George and Sutherland Shire region, where McGrath conducted 31 auctions by mid-February, whilst the North Shore and Eastern suburbs kept to the traditional late February kick off.

Currently, we have 192 auctions scheduled on March 28 for NSW on what will be Super Saturday. This will prove to be an excellent barometer of the continuing strength of the auction market. As an auctioneer operating in such a competitive environment it is important not to lose sight of the job at hand.  Emotions run high as does the percentage of unsuccessful and sometimes disappointed under- bidders.   However, buyers should not panic as there will always be good opportunities in the marketplace.

As we start to assess the first quarter of this year, our key drivers will be continuing consumer confidence and the historically low interest rates.   The NSW State Government elections and stabilization of the leadership at the federal level will also weigh into how our real-estate market will progress.  All things being equal we should not see anything other than the status quo.