Anneke and Chris were not expecting to win at auction when they arrived to compete for a North West Sydney home on Saturday morning.
With three interest rate rises, recent federal budget tax changes along with global economic uncertainty, Sydney property prices have seen recent decline that the pair said encouraged their househunting to land a well-timed move.
But the strong interest in the home left them unsure on how the competition would play out.
“Looking at the property report of this property between last month and this month it dropped a lot so we were thinking maybe we’d be successful, however, seeing how many people were coming through the open homes in this property compared to the other properties we were looking at, there were about three to four times as many people coming through,” Anneke said.
“We thought, we’re not really in for a shot here.”
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Happy buyers Chris and Anneke at Saturday’s auction in Kings Langley. Picture: Glenn Campbell
Growing up in Kings Langley, Chris said “no one really knows about it (the suburb) but its very central.”
“Every house that we walked into we were comparing this house.”
Amid price falls, the couple said the timing was positive to buy and upsize.
“It’s a good time to be a buyer in our situation,” Anneke said.
“But then we also have to sell our other property and we’ll get burned on that end.”
The home at 12 Brett Street saw three registered bidders, all who were active.
An opening bid started at the home’s guiding price of $1.4m, with smaller rises including bids of $1,000 and $5,000.
An eventual $1.515m bid secured the home to the winning couple.
Lead Agent Kim McChlery of McGrath Parramatta said she was finding properties under the $1.5m mark more active in the current market.
“It’s definitely a tough market out there, but we are doing everything we can to get buyers through,” she said.
Ms McChlery said it has “been a spiral all year.”
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Auctioneer Riley Smith at the 12 Brett Street auction. Picture: Glenn Campbell
“If anything, I’m feeling a little more positive now, at least people know what’s happening,” she said.
“At the end of the day, it’s not going to affect anyone buying their own home.
“They (buyers) just need to take a breath and go, we still need to buy a house, and if they don’t want to pay enough for it they won’t.
“The good houses are still selling.”
Auctioneer Riley Smith of McGrath Norwest said it was a great result.
“Our owners are ecstatic, happy buyers and happy vendor, you can’t ask for anything more,” he said.
As for the current auction market, he said there was still success to be found amid clearance rate downturn.
“I think it’s always a great way to sell a home, in a market where there is more fear and uncertainty and people holding back,” he said.
“What it does is create transparency, it creates a deadline and brings people in an environment where they can see their competition.”
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17 Isabella Street, Queens Park.
A century-old cottage at 17 Isabella Street sold for $2.3m after hitting the market for the first time in 50 years.
The Queens Park home cleared its guide of $2m and $2.1m reserve.
Lead Agent Angus Gorrie of Ray White Eastern Beaches said the auction began with a vendors bid of $1.8m, but followed with a lengthy competition with all four registered bidders active.
“It went for about half an hour,” he said.
39 Carter Street, Cammeray
A lower north shore home sold under the hammer for $6.5m, clearing its $6m guide.
The home at 39 Carter Street, Cammeray had over 100 attendees at its auction with six registered bidders and two active.
It sold via Blake Morris and Monika Tu of Black Diamondz Property Concierge Sydney.
“Throughout the campaign we had close to 400 enquiries,” Mr Morris said.
“The feel of the home was so well received.”
Saturday’s auction came amid a decline in clearance rates, with SQM Research reporting 36.51% clearance rate in NSW last week.
Ray White NSW Head of Auctions David McMahon said vendors are starting to understand where the new market value is, compared to last year.
“Definitely prices have come off, that’s really consistent across most Sydney markets,” he said.
“Now vendors are starting to see properties that are sold comparable to theirs for a price that perhaps was lower than what they were expecting.
“We now have new information, new evidence to suggest about where their property sits in the current market conditions.
“For buyers, you’re dealing in less competition.
“The gap between the vendors and the buyers is shortening compared to where it was 3 months ago.”
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