Interest rate hikes may be starting to play with the confidence of buyers and sellers across Sydney, as experts warn of an increasingly cautious market.
Though many auctions around Greater Sydney today claimed results above reserve, rising interest rates may be sewing the seeds of doubt throughout the market, as Ray White NSW head of auctions David McMahon notes that they “appear to be reshaping behaviour”.
“Our auctioneers are reporting a higher proportion of properties selling prior to auction — now at 24 per cent — compared to recent months, as vendors show a greater willingness to consider strong pre-auction offers,” he said.
Each of the country’s big four banks increased variable home loan interest rates by 25 basis points late last week.
Auction attendees this morning in Greenacre. Picture: Thomas Annetts
Mr McMahon said a total of 164 auctions were scheduled in NSW for Ray White today, a notable decline from the 205 held this time last year.
He noted that competition “remains steady”, with an average of four registered bidders per auction.
“While buyers may be exercising greater caution in the current rate environment, results suggest demand is still present,” he said.
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Ray White NSW head of auctions David McMahon. Picture: John Fotiadis.
According to Matthew Laface of McGrath Revesby, there has only “been talk” of interest rates hurting buyer activity at home opens since the RBA’s cash rate decision.
Mr Laface said he “hadn’t really seen it overall”, particularly in his area.
“It doesn’t feel like interest rates impacted the market here in Revesby too much,” he said.
Mr Laface sold a four-bedroom home in Sydney’s South West this morning, as 52 Rowland St, Revesby went under the hammer for $1.873m.
The sale cleared the home’s reserve by $173,000.
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52 Rowland Street, Revesby sold at auction for $1.873m.
Eight bidders were registered and four were active in what Mr Laface described as a “quickfire” auction that saw 31 bids.
According to Mr Laface, the home was purchased by a young lady from Bankstown.
Interest chiefly came from young couples and families, Mr Laface added, noting that buyers in the area have not been deterred by interest rate rises.
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16/27A Eaton Street, Neutral Bay
In the apartment market, auctioneer Edward Riley said the right properties were attracting strong competition.
He sold a unit on Neutral Bay’s Eaton St today for $840,500; a result $90,500 above reserve.
The property had 10 registered bidders on auction today, which Mr Riley said demonstrated the strong competition in this price bracket.
“Today’s result shows that first home buyers are still out in force and prepared to compete fiercely for quality property, particularly in blue-chip pockets like Neutral Bay,” he said.
“Despite broader market noise, the sub-$1m bracket remains a fiercely contested battleground, driven by buyers determined to secure a foothold close to the city.”
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Brothers Darrin and Kevin Querin place the newly sold sign on their parents’ estate. Picture: Thomas Annetts
Elsewhere, an emotional auction in Greenacre saw two brothers close a sixty year chapter for their family, as they executed the sale of their parents’ estate.
The three-bedroom home at the end of Illawong Cres had been in the Querin family for over 60 years.
Brothers Darrin and Kevin Querin grew up in the red brick home, where their parents would host family events in the backyard.
“Our parents love to have parties here,” Darrin said.
“The back area would quite lend itself to entertaining and there was always people around for a barbecue.”
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The family home on Illawong Cres, Greenacre
Their father, Peter Querin, emigrated to Sydney from Italy after World War II.
“He came here with nothing,” Darren said.
“Without one cent in his pocket, and unable to speak English, he became quite successful.
“He ended up as a leading engineer in the industry.”
Mr Querin’s name appears on the National Monument to Migration at Darling Harbour and according to Darrin, he was also a translator for the Italian Olympic team during the 2000 Olympics.
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Mr Querin’s name is included on the National Monument to Migration at the Australian National Maritime Museum in Darling Harbour. Picture: James A/TripAdvisor
The Querin’s family home sold at auction for $1.36m, a result $30,000 over reserve.
Only two bidders were active among the three registered, in a speedy auction that lasted around seven minutes.
Craig Stephenson of Ray White Bankstown said the original home was “still in great condition”.
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Darrin Querin (centre), wife Julie (left) and brother Kevin (right) celebrate the emotional sale of their family’s home. Picture: Thomas Annetts
Mr Stephenson noted that buyers had only been “a little bit wary” following this month’s cash rate hike.
“Overall though, buyer confidence has been still good over the last few weeks,” he said.
“Supply is probably a little bit down at this time compared to last year.”
The home’s sale price fell just below Greenacre’s $1.445m median for a three-bedroom home.
Mr Stephenson said the purchasers, a local family, bought the home to be closer to one of their relatives who lives just two streets away.
The Querrin’s were delighted to see the home go to another family, with Darrin saying the home had been “passed down to the next generation”.
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34 Highlands Ave, Gordon
In the north, a four-bedroom slice of grandeur sold in Gordon for $3.998m.
The expansive home surpassed its reserve by $148,000, selling for $248,000 more than the suburb’s median price for a four-bedroom home.
Sold by Jing Peng of LJ Hooker Gordon, the property sits on 1,005 sqm of private land and includes a 15m lap pool, established gardens and multiple formal and informal living areas.
Four bidders competed for the home on Highlands Ave, between Gordon and Pymble.
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