Yahoo Finance Sydney's property boom will end
Estate agent John McGrath says auction is "by far the very best way of flushing out the highest price the market is willing to pay for your home, especially during booms."
He suggested people are far more excited and motivated and prepared to pay a premium for the home they want.
"In a booming market, it’s not surprising to see a spike in the number of homes offered for sale via auction in Sydney," he noted.
"I think it’s going to be a fantastic few months in Sydney real estate.
"The best part about this year’s Spring is not just the expectation that vendors will achieve good prices, but also the expectation that buyers will finally have a decent amount of stock to choose from in suburbs where supply has been especially tight throughout winter," he wrote on his Switzer blog.
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He noted the first three weekends of Spring will be an interesting test in terms of listing numbers, sale prices and clearance rates.
"Public school holidays in NSW begin on September 19 so we might see a short interval in new listings coming to market over that period as family home vendors wait until the first week of Term 4 to launch their properties on the market.
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"From this point, the Spring market will move forward all the way to mid-December.
"People need to realise that Sydney’s boom will inevitably end and price growth will moderate.
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"When this will happen? We don’t yet know but I wouldn’t be surprised if by this time next year, things might have settled down considerably.
"I continue to hold the view that a pause would be healthy for a sustainable market."
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