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.

First home loan comparisons on Mozo - rates updated daily

  • Base Variable Rate Home Loan

    Owner Occupier, Principal & Interest

    3.69% p.a. variable

    3.73% p.a.

    $1,250 BONUS WITH AN ELIGIBLE NAB HOME LOAN BANKING BUNDLE*. Low ongoing rate. Free extra repayments and redraw facility. Only 5% deposit and no annual or monthly fees.

    • 3.69% p.a. variable

    • 3.73% p.a.

    • $600

    • $0.00

    • $350.00

    • yes - free

    • yes

    • no

    • 95.00%

    • $20,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

  • Tame The Beast Offset Home Loan $400k+

    Owner Occupied, LVR<90%

    3.72% p.a. variable

    3.82% p.a.

    24 hour approval, 100% offset & redraw. Only 10% deposit & no establishment fees. Try a fresh approach to banking.

    • 3.72% p.a. variable

    • 3.82% p.a.

    • $0

    • $8.00 monthly

    • $80.00

    • yes

    • yes - 1st redraw per month free

    • yes

    • 90.00%

    • $400,000

    • -

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

  • Balanced Variable Home Loan

    Owner Occupier, Principal & Interest

    3.65% p.a. variable

    3.66% p.a.

    No Loan Establishment Fee, annual or monthly account keeping fees. Enjoy the flexibility of being able to make unlimited extra repayments without penalty. Borrow up to 90% of the property value.

    • 3.65% p.a. variable

    • 3.66% p.a.

    • $195

    • $0.00

    • $500.00

    • yes - free

    • yes - free

    • yes - partial up to $15,000 maximum

    • 90.00%

    • $100,000

    • $5,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

  • Variable Rate Loan

    Owner Occupier, Principal & Interest

    3.72% p.a. variable

    4.11% p.a.

    A great rate is just the start with AMP's Professional Package. Offers the flexibility to structure debt effectively. Only 10% minimum deposit. Minimum $800k loan.

    • 3.72% p.a. variable

    • 4.11% p.a.

    • $295

    • $349.00 yearly

    • $100.00

    • yes - free

    • yes

    • yes

    • 90.00%

    • $750,000

    • $2,000,000

    • Variable

    • Principal & Interest

    • Owner Occupier

    • Weekly, Fortnightly, Monthly

    Details Close

*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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