Over recent weekends, Domain has reported strong auction results in Sydney—measured by the “auction clearance rate”—which is the percentage of auctioned homes resulting in a sale (rather than being “passed in”).

At the beginning of the year, Sydney’s auction clearance rate mostly floated around 68 percent, but in more recent weeks, Domain has reported figures in the mid-to-high-70s. A higher rate is a sign of a strengthening market. It signifies enough competition among buyers to bid up the price of the home to an acceptable level for the seller.

With interest rates yet to begin their expected decline (with most anticipating this will happen in late-2023 or early-2024), the strong sentiment can be attributed to a number of other factors. In many parts of the world, fewer new homes have been made available, but many buyers are still competing for them. The same applies to Sydney.

For those entering the housing market, this means you’ll likely have to me nimbler in your negotiations. You could make yourself more competitive by:

Knowing your need-to-haves and nice-to-haves: what is important to you, and what are you willing to compromise on? Make sure you’re in agreement with your significant other (or anybody else who has an influence on the purchase).

Maintaining regular (and clear) contact with the sales agent of the home you want to purchase, so you’re considered a serious buyer.

Speaking with your broker or bank ahead of time so you’re aware of your borrowing capacity and target purchase price—this will ensure you’re not wasting time on properties that aren’t actually an option. Otherwise, you’ll quickly find yourself in buyer fatigue.

Arranging finance pre-approval for your target purchase straight away, rather than allowing it to linger.

Choosing the right legal professional: inexperienced conveyancers or solicitors can kill a property deal unnecessarily. When selecting the right legal professional, make sure they have experience in the type of property purchase you’re making, and that they have the capacity to meet the timeline required to get the sale completed successfully.