Sydney property boom continues as clearance rates pick up

Roisin Kelly-Goldsmith

10 Jul 2017

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Despite five weeks of an auction clearance downturn in the Sydney property market, the latest results have proven the housing boom is still alive with buyers snapping up 71.5% of dwellings listed on Saturday.

The cool weather during a busy school holiday period wasn’t enough to dissuade home buyers in Sydney last weekend, as they collectively purchased $304.3 million worth of housing at auctions, according to Domain.

These results have come as no surprise to Mozo’s Property Expert, Steve Jovcevski, who believes the boost in clearance rates are a predictable outcome of the July 1 stamp duty exemptions and concessions coming into effect.

“Over the last few weeks we’ve seen a lull in the Sydney property market and I suspect it was largely due to first home buyers holding off until the stamp duty perks in NSW kicked in,” he said.

“Well last weekend clearly indicates that it only took one week for the market to heat up again, which is no coincidence if you ask me.”

Jovcevski suspects that house prices may tilt upwards over the next few months, once supply begins to fall short of the demand required by the first home buyer market.

“Housing supply is key at the moment, because you have people with deposits, flooding the market in the race to buy property before prices go up again.”

According to the Housing Industry Association (HIA), building approvals in NSW dropped 22.4% in May, compared to the same time last year.

“This slowdown is in stark contrast to the growing demands of first home buyers and the need to promote an increase in housing supply,” said Principal Economist at HIA, Tim Reardon.

If you’re looking to make your dreams of homeownership come true, the good news is that interest rates have been moving in the favour of owner occupiers paying off the principal and interest, rather than interest only borrowers. See the table below the top rates or compare hundreds of mortgages at Mozo’s home loan hub.

Best mortgages for first home buyers: - rates updated daily

  • Promoted

    loans.com.au

    3.44% p.a. variable

    3.46% p.a.

    $1234

    Product details Close details
    Essentials Variable 90

    This low-rate home loan that could save you thousands! With no monthly or ongoing fees and the ability to make unlimited additional repayments. This home loan from popular online lender loans.com.au also features unlimited free redraws with no minimum redraw amount.

    • 3.44% p.a. variable

    • 3.46% p.a.

    • $520

    • $0.00

    • $0.00

    • yes - free

    • yes - free

    • no

    • 90.00%

    • $50,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Essentials Variable 90

  • Promoted

    Greater Bank

    3.82% p.a. variable

    3.84% p.a.

    $1234

    Product details Close details
    Discount Great Rate Home Loan with Family Pledge

    Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as a guarantor. NSW, QLD and ACT only. Mozo Experts Choice Awards - Home Lender Bank of the Year 2019.^

    • 3.82% p.a. variable

    • 3.84% p.a.

    • $180

    • $0.00

    • $300.00

    • yes - free

    • yes

    • no

    • 110.00%

    • $150,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Discount Great Rate Home Loan with Family Pledge

  • Promoted

    Hume Bank

    3.79% p.a. variable

    3.79% p.a.

    $1234

    Product details Close details
    Flexi Low Rate Refinance Special

    A Flexi low rate home loan with no extra features to make it simple. A refinance special offer, no application fees & no monthly fees.

    • 3.79% p.a. variable

    • 3.79% p.a.

    • $0

    • $0.00

    • $200.00

    • yes - free

    • yes - free

    • no

    • 95.00%

    • $100,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Flexi Low Rate Refinance Special

  • Promoted

    Hot Deal QLD only

    QBANK

    3.84% p.a. variable

    3.87% p.a.

    $1234

    Product details Close details
    Discounted Classic Home Loan

    A low variable Home Loan rate with no monthly fees and flexible repayments.

    • 3.84% p.a. variable

    • 3.87% p.a.

    • $195

    • $0.00

    • $530.00

    • yes - free

    • yes - free

    • no

    • 95.00%

    • $150,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Read our Mozo Review to learn more about the Discounted Classic Home Loan

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

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