A young local first home buyer couple paid $1.7 million for a Leichhardt semi after it passed in at auction on Saturday, not a dollar more than the vendor’s reserve price, as Sydney’s clearance rate weakened again.
The two-bedroom home at 46 Redmond Street had a versatile kitchen island, a grassy backyard and a smart upstairs rumpus room or third bedroom, and was also listed with a price guide of $1.7 million.
The property was one of 510 scheduled to go to auction in Sydney last week. By Saturday evening, Domain Group recorded a preliminary auction clearance rate of 48 per cent from 289 reported results throughout the week, while 105 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
Sydney’s preliminary result is a drop of five percentage points from the previous week, and is likely to be revised even lower as more results are collected. Albeit slightly higher than the depths it reached in late June, the read is well below the 60 per cent level that is considered a balanced market, and suggests more price falls are likely to come.
Some market participants felt this week’s inflation figures, which were not as high as feared, could lead to a decision by the RBA to hold rates steady at its next meeting, but others thought it was too early to tell. Sydney house prices fell 3.3 per cent in the June quarter, Domain figures released a little over a week ago showed.
Three parties registered for the inner west semi; two put in bids. Proceedings began at $1.55 million and there was competitive bidding until $1.65 million.
A vendor bid was placed at $1,675,000, then the young couple raised their offer to $1.68 million. With no further offers, the home passed in.
Within about 20 minutes of negotiations, the young couple who had been the highest bidders bought the property for the reserve price of $1.7 million.
McGrath selling agent Jon Snead had started to see more sales like this in recent weeks, and an increase in the number of potential buyers through open homes.
“Some buyers now are starting to realise this is a good time to buy,” he said. “The property is never going to be free.”
The seller was an investor who decided it was time to move on, Snead said. “He is a smart guy and was very happy to meet the market.”
Public records show the home last traded for $1.35 million in 2020.
Elsewhere, a Pyrmont home owner let go of a two-storey terrace that was so nice, she owned it twice.
The vendor of the two-bedroom terrace at 23 Paternoster Row had bought it in 2016 for $1.23 million and sold it on Saturday for $1.39 million.
But it wasn’t the first time she had sold the address. She previously bought it in 1995 and sold it in 2000, LJ Hooker Pyrmont/Ultimo selling agent John Zheng said.
“This lady really loved this house,” he said, adding she had bought it back a decade ago because she had an emotional attachment to the property and was only selling now to go into aged care.
Three bidders registered for the home, listed with a price guide of $1.4 million to $1.5 million. The reserve was $1.4 million.
Two parties bid, beginning at $1.35 million, and an investor who plans to renovate won the keys for $10,000 shy of the reserve.
“Especially in the city, we used to be dominated by investors and, obviously, since the tax reforms there are less investors in the market,” Zheng said.
“But we do think there is a lot more first home buyers in the market looking. Anything under around $800,000 is still moving relatively quickly.”
In Baulkham Hills, a young family paid $1.86 million for a four-bedroom house to be closer to their relatives in a Sunday morning auction.
Seven parties registered for 24 Lindsay Street, set on a block of about 695 square metres, and listed with a price guide of $1.69 million.
Four parties competed, starting from $1.6 million, then one dropped out of the race at $1.8 million and another at $1.82 million. The home sold just above its $1.85 million reserve.
There is no legal requirement for a vendor’s reserve to be in line with their property’s price guide.
The winners are renting in Cremorne, and will move closer to their family in the Hills District. The three top buyers were all young families, Manor Real Estate selling agent Jay Bacani said.
He thought the property stood out because of its block size and leafy outlook. The vendors are downsizing after more than four decades.
“It is an older home but well maintained, the location was great, the land was exceptional,” he said.
“Homes like the one we just sold are still doing well. The market has to really see value in relation to the price.
“Whereas properties that are still maybe asking for prices that we were getting at the beginning of the year, those are struggling.”
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