Buyer confidence stronger against threat of further rate hikes, agent says
A number of properties have sold above expectation in Sydney this Saturday with agents claiming buyer confidence has returned following a period of uncertainty.
Family friendly homes in popular middle markets sold well above previous feedback from buyers as recent hesitancy seemed to fall away.
At the same time, properties with a more expensive price tag fell victim to the “domino effect” as buyers waited to see how much they would sell their own properties for before committing to a sale.
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Great Aussie rock ‘n’ roll selloff
A time warp house just a few doors down from the Bay in Rodd Point sold for $2,656,000 after two committed buyers faced off with $1,000 bids.
Some auctions drew quite a crowd this weekend.
The property at 4 Arthur St had original sixties decor that was preserved in excellent condition, including yellow and brown floral wall tiles and red tessellated floor tiles in the bathroom.
Seven registered to bid with four buyers competing.
Bidding opened at $2m before two of the parties took charge in a slow and steady climb to $2,656,000.
Selling agent Fiona Hellams of Ray White Newtown said the result defied her expectations after buyer feedback during the campaign sat at $2m.
4 Arthur St, Rodd Point sold for $2.656m.
It had a dated kitchen …
… and bathroom …
… but it was two houses down from the Bay.
She said there seemed to be greater confidence from buyers who “had a couple of weeks to digest” two consecutive rate hikes made by the RBA.
Nicholas Arena from Ray White Petersham said buyer confidence had returned following the uncertainty of the federal election.
He sold a two bedroom house at 105 Crystal St, Petersham above reserve for $1.39m after seven bidders registered.
105 Crystal St, Petersham sold for $1.39m.
It had period features with a modern feel.
“People have almost got a bit more certainty that rates are going up,” he said. “They are at least planning for it.”
Ercan Ersan from Ray White Surry Hills said buyers were taking action to buy before interest rates went up again.
“The market has been good, everything we had today sold,” he said.
“If anything I’ve seen a bit of a surge in buyer activity because they’re nervous about losing their borrowing capacity, so they’re getting in while they can.”
30 Winchester Rd, Clovelly passed in at auction.
But over in Clovelly, things weren’t as rosy.
A four bedroom semi at 30 Winchester Rd passed in at $4.4m despite being 700m from the beach.
Agent Mark Macpherson said properties at higher price points were falling victim to the “domino effect” as buyers waited to see what they would sell their existing homes for before committing to a strong purchase.
It had a family friendly yard …
… and was walking distance to the beach.
“Buyers are hesitant to improve their position until they know what they can get,” he said. “The domino effect is impacting confidence.”
Auctioneer Clarence White said buyers remained cautious.
“They’re factoring in the belief that prices are going to keep going down from here. That’s driving their thinking when it comes down to what they are willing to pay on auction day.”
Auctioneer Clarence White at an auction in East Killara.
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