Interest rates Australia: Shock of rate rises wearing off for homebuyers
The shock of multiple interest rates rises is fading for home buyers, as sellers also regain confidence in the spring market, according to real estate industry insiders.
A weekend inner city auction, of a home that sold $500,000 above reserve, is a prime example.
The four-bedroom, two bathroom freestanding home at 25 School Parade, Marrickville had received a high amount of interest prior to the weekend’s auction – with more than 100 groups looking at the property.
Tightly held by the same family for more than two decades, the home’s sale went against the grain of many recent real estate market headline predictions.
Auctioneer Clarence White sells the property to Adam and Kristen Costandi. Picture: Sam Ruttyn
Auctioned via Menck White Auctioneers’ Clarence White and listed through Adrian William agents Adrian Tsavalas and Josh Vela, the property had a $2.75m price guide.
A 50-person strong crowd watched on as four registered bidders battled it out for the Federation home, which ultimately sold to a local buyer for $3.26m.
Mr White said both vendors and buyers have regained their confidence in the market and are more willing to pay a higher price for a premium home.
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The property included a luxury pool, perfect for upsizing families. Picture: Sam Ruttyn
“I’m optimistic about the rest of spring in the next coming weeks, if this auction is any indication of where things are headed,” Mr White said.
“I think buyers have come to terms with the rate rises and are seeing the value in today’s homes on the market and are more willing to pay higher prices as a result.”
Mr Tsavalas also agreed that the conditions for the market had somewhat shifted, telling The Daily Telegraph that the initial shock of rising interest rates had worn off.
The property had received over 100 groups through its doors prior to auction. Picture: Sam Ruttyn
“We’re in a better position now than we were three months ago. People are still mindful of the rising interest rates, but I think the conditions we are seeing today are similar to those seen in the 2015-2016 boom.”
“Ultimately, the spring selling season hasn’t been as dire as predicted.”
As the weather has warmed up, so too has the auction clearance rate – with recent buyer numbers at auctions over the past few weeks indicating a stabilising of the market.
The auction received a high attendance on the day, with four registered bidders vying to own the home. Picture: Sam Ruttyn
The rate rise in August didn’t impact the market in a negative manner, rather seeing stronger sales results when compared to July.
All of the active bidders at the Marrickville auction were looking to upsize and originated from the Inner West.
Features of the 588 sqm property included high detailed ceilings, a timber floor, stained glass window features, original fireplaces and a heritage bathroom with a bathtub.
Location was a major selling point for the property, being minutes away from the Dulwich Hill rail, light rail and buses in addition to Marrickville Village and the Cooks River.
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