Sydney auctions: first homebuyers get lucky break as Easter fails to dampen buyer demand

First homebuyers have been struggling in recent weeks due to unprecedented hikes in property prices but a family of first-time buyers claimed a rare victory at auction Saturday.

Brendan and Joann Bell snapped up a two-bedroom house in a sought-after pocket of inner west suburb Leichhardt for $1.59m after coming up against seven other registered bidders.

The couple were seen celebrating after the sale and told The Sunday Telegraph they were “relieved” their search for a home was over and they wouldn’t have to continue competing in the red hot market.

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The Macauley St auction was one of only about 50 scheduled over the Easter long weekend – traditionally a quieter period for property sales activity.

But the lower volume of auctions was not matched by a drop in buyer turnout and most properties that went under the hammer over Saturday sold successfully – often well above reserve.

The sales have come as research group CoreLogic reported home prices rose in March by the biggest national margin since 1988.

Sydney led growth across the capitals with a 3.7 per cent increase in dwelling prices for the month and housing experts warned further rises were on the cards.

Ms Bell said her family had been looking for a property since the end of last year but had to continually raise their budget and scale down the size of the home they wanted.

“We had to be realistic,” she said. “You just can’t keep up with prices anymore, we started ignoring price guides. They were always way off.”

The Leichhardt property was no exception, with Ray White-Balmain agent Chris Williams revealing the price guide was raised multiple times throughout the sales campaign on account of strong buyer interest but it still ended up about $300,000 under the eventual price.

“You just cannot predict prices anymore,” he said, adding the $1.59m sales price was significant considering the small house had no parking. It was also under a major flight path.

The home had last sold in 1996 for $245,000, according to sales records.

Seller Kristine Edwards said she expected “anything to happen” at the auction but the end result was well beyond her expectations.

Auctioneer Clarence White received an opening bid of $1.25m immediately after launching proceedings and the initial offers went up in increments of $50,000.

A total 18 bids were placed and four of the eight registered bidders participated in the auction.

Mr White said the current market was the strongest he has worked in. “It’s extraordinary,” he said. “I’ve never seen anything like it.”

The inner west had most of the standout sales over the weekend.

In Sydenham, a four-bedroom house on Yelverton St sold for $1.66m, $166,000 over reserve. Ten bidders registered.

Selling agent Adrian Tsavalas of Adrian William said it was apparent the market was “escalating” because a similar property across the street sold for $1.56m a few weeks ago.

And in Earlwood, a house on Wardell Rd sold for $1.98m after going to market with a $1.4m guide. Fifteen parties registered to bid with McGrath agent Alexandra Stamatiou-Buda.

Further south, in Arncliffe, a four-bedroom house on Terry St sold for $1.6m after attracting six registered bidders. There was a crowd of about 60 people at the auction and it sold for well above expectations.

In the suburb of Kareela in the Sutherland Shire, a house surrounded by tropical gardens sold for just over $1.3m, beating the reserve by about $52,000. Auctioneer Andrey Cooley of Avenue Auctions received an opening bid of $1.1m.

Mr White said the market was reaching the point where vendors were starting to inflate their reserves but homes were still selling well above their expectations. “Sellers know it’s a hot market and they are factoring that into their prices but the buyers keep going higher.”

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