Property watchers on alert as more homes go under the hammer

 

Another strong weekend of property sales - over 700 auctions scheduled for Saturday - has analysts working overtime trying to pick a boom from boomlet.

The Scene's Steve Devine of Devine Real Estate believes the market is sustainable.

"Strathfield prices have consistently doubled in value, on average, every 8 to 10 years and I can’t see any reason why this won’t continue in years to come," he writes in the Scene newspaper, out today.

"The market is showing no signs of slowing down with Strathfield prices continuing to go from strength to strength each week.

"So far in 2013, Strathfield has recorded more sales between $2 million and $4 million than it had for the previous 2 years cumulative. The other end of the scale (the entry level unit market) is also skyrocketing; fuelled by eager buyers who either want to transition from being a tenant into home ownership, along with investors attracted by stable high yields or those wanting to invest via their Self Managed Super Funds (SMSF’s)."

There are seven homes listed for auction in Strathfield this weekend, according to realestate.com.au.

Agents say sellers expectations are now a problem, with many demanding six figure increases over what they wanted three months ago.

But the biggest question remains:  is it a boom, or is it a bubble.

A new report maintains house prices rose on average $500 a day last month, with the city's median price going up $16,000 in a month.

The RP Data-Rismark Hedonic Home Value Index puts the median price at $665,000 - which is still half the Strathfield price of a home.

According to The Sydney Morning Herald a week ago, the Commonwealth Bank is cautioning home buyers not to make hasty decisions.

Super Saturday, two weeks ago, saw Sydney clear $339 million worth of property -  with a clearance a rate of 81.5 per cent.

Some four properties were reported to have changed hands in Strathfield at a total of $6.74 million by close of business.

According to Australian Property Monitors, it is  taking 74 days to sell a house compared to a year ago, when it took 92.  Auctions in the Inner West are up 25 per cent year on year.

Here’s RP Data’s view of Strathfield’s performance:

 

 

 

 

 

 

 

 

Last 12 months Strathfield activity

Last updated 28/09/2013

Houses in Strathfield

•   178 houses sold

•   $1,302,500 median sale price

•   105 average days on market

Units in Strathfield

•   211 units sold

•   $480,000 median sale price

•   57 average days on market

 

 

 

 

 

 

 


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