Buyer confidence boosted amid threat of further rate hikes, agent says
As the domino effect hit the high end, some markets saw more bidders register with several homes selling well above buyer feedback.
A number of properties sold above expectations in Sydney on Saturday, with agents saying buyer confidence had returned after a period of uncertainty.
Single-family homes in popular mid-markets sold well above previous buyer feedback as recent hesitation appeared to fade.
At the same time, higher priced properties fell victim to the ‘domino effect’ as buyers waited to see how much they would sell for their own properties before committing to a sale.
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A time warp house a few doors down from Rodd Point Bay has sold for $2,656,000 after two committed buyers clashed with bids of $1,000.
The property at 4 Arthur St had original 60s decor that has been kept in excellent condition, including yellow and brown floral wall tiles and red mosaic floor tiles in the bathroom.
Seven registered to bid with four competing buyers.
Bidding started at $2 million before two of the parties took control in a slow and steady climb to $2,656,000.
Ray White Newtown sales agent Fiona Hellams said the result defied her expectations after buyer feedback during the campaign came in at $2 million.
She said there appeared to be greater confidence from buyers who “had had a few weeks to digest” two back-to-back rate hikes made by the RBA.
Nicholas Arena of Ray White Petersham said buyer confidence had returned after the federal election uncertainty.
He sold a two-bedroom house at 105 Crystal St, Petersham above reserve for $1.39 million after seven bidders signed up.
“People are almost a little more certain that rates are going up,” he said. “They are planning it at least.”
Ercan Ersan of Ray White Surry Hills said buyers are taking steps to buy before interest rates rise.
“The market was good, everything we had sold today,” he said.
“If anything, I’ve seen a slight uptick in buyer activity because they’re nervous about losing borrowing power, so they’re getting in while they can.”
But in Clovelly, things weren’t so rosy.
A four-bedroom tractor-trailer at 30 Winchester Rd cost $4.4 million despite being 700 yards from the beach.
Agent Mark Macpherson said higher priced properties were falling victim to the ‘domino effect’ as buyers waited to see what they would sell their existing homes for before committing to a solid purchase.
“Buyers are hesitant to improve their position until they know what they can get,” he said. “The domino effect has an impact on trust.”
Auctioneer Clarence White said buyers remained cautious.
“They factor in the belief that prices will continue to fall from here. This is what drives their thinking when it comes to knowing what they are willing to pay on auction day.
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Originally published as Buyer confidence boosting amid threat of further rate hikes, agent says