While the national economy has been weakened of late, evidence suggests that Sydney is retaining its dynamism. The drivers of the housing market of Sydney are still strong.
For example, there is low unemployment in the region at the moment. Large numbers of auctions are being held in the centre of the city. Clearance rates at the auctions are somewhat higher than they were a year ago. Brochure printers within Alexandria may receive more business as a result.
This trend has been powering the local housing market. The housing market of Sydney has not slowed down as much as it might have done with the onset of winter. A shortage of homes has helped keep demand high. Further, migration has been a positive factor in the performance of the inner suburbs. The workforce of Sydney has expanded by about 19,000 jobs in the last year or so.
Nevertheless, there was a slight dip in the Sydney market in the month of May. When compared with the previous month, the weekend clearance rates at the auctions were down. However, this marginal degree of market easing might not continue. It is important that seasonal factors are fully taken into account in any analysis.
For in excess of 800 properties to be auctioned on a June weekend in Sydney is actually a record. About two years ago, the June market peaked at under 700 houses.
