“It’s definitely something to consider,” he said. But I think we’re in a good position to rent, at this point. From our perspective we can transfer this to the rental market.
Ray White’s Stephen Stella says some buyers are concerned about the current outlook for the housing market, but others see it as an opportunity, as sellers begin to adjust.
“Anyone who has a real reason to sell realizes that it’s not yesterday’s market,” he said. “Most people are used to what’s going on.”
The Reserve Bank raised interest rates by another 50 percent this week to 1.85 percent, reducing the amount buyers can bid on.
Last month, Melbourne’s bid clearance rate was 52 per cent, the lowest since September 2020, Domain data showed.
For the first time since April 2021, the Victorian capital’s median auction price fell below $1 million, reaching $990,000.
A South Yarra family’s self-renovated home went under the hammer on Saturday for $4.42 million.
A four-bedroom house at 26 Hawksburn Road attracted four parties and sold for $620,000 over $3.8 million. The reserve is set at the top of the $3.5 million to $3.8 million price guide.
Sold to a professional couple by RT Edgar Torak, Anthony Grimwade.
“The real driving force at the moment is that there is very little quality property on the market,” he said.
“I don’t think people are putting their homes on the market as often as we normally see.”
A three-bedroom house in Glen Waverley fetched $2.06 million after four bidders competed in person and one online auction in Hong Kong, but the agent thought it was worth less than it sold for a year ago.
Offers for 5 Graham Street started at $1.8 million, and the market is calling for $2 million, Harcourts Judd White’s Andrew Dimashki told buyers planning to renovate and move into the home.
He thought he would have made $2.1 million or $2.2 million if he sold it last year, but he said the number of buyers in the market has dwindled.
“Rising interest rates are worrying our buyers,” he said.
“A lot of people are doing a market review which means a lot of properties are coming on the market … It’s definitely going to be an improved buyers’ market and a strong sellers’ market.”
Morrell and Coren’s buyer’s agent Matt Cleverdon went to auction at 3/17 Manor Street, Brighton, a three-bedroom villa close to the bay which is attracting bidders.
He said there were three parties bidding, which opened at $1.9 million, bids for $1.95 million, and sold for $2.35 million.
“The sentiment in the market is probably cautious optimism,” he said.
“There seem to be a lot of buyers, but they’re careful not to get into something that runs away from them.”
In Fitzroy, a converted warehouse for residential or commercial use sold for $2.83 million.
The lot at 354 Fitzroy Street drew two bidders, and the winner plans to renovate it long-term and rent it out as a commercial property in the short term, said Christian Lunardi of Nelson Alexander Fitzroy.
He said interest rate hikes are a concern for buyers, but the moves are now less predictable.
“Buyers have accepted that rates are going up, or have gone up, and can plan accordingly,” he said.
A one-bedroom park-front apartment in Melbourne’s east sold for $667,000 at a crowded auction – says Marcus Wilson of professionals Whiting & Co.
Two bidders bid over $650,000 for 10/98-106 Vale Street.
“We are sure that even if the number increases, there will be no doom and gloom,” he said.
“If you’re a seller and a buyer in the same market, it’s all relative.”
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