Uncertainty over the outcome of the federal election has created a “window” for home buyers to get a reprieve from the pressure-cooker conditions normally driving sales.
Home auctions across Sydney delivered mixed results over the weekend, with agents revealing that competition for listings was easing.
They pointed to a growing sense of hesitancy from buyers ahead of the May federal election, with uncertainty over the outcome causing many to pull back from competing for properties.
McGrath auctioneer Edward Pena said a similar pattern was emerging to what occurred before the last two federal elections.
Auctioneer Edward Pena takes bids at a Castle Hill townhouse auction. Picture: Jeremy Piper
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“Usually the market starts to slow before an election, just because of the uncertainty,” he said.
“It then starts to pick up after the election ends, regardless of who wins.
“It’s not about any of the parties. It’s just because it’s a big life decision for people and, given the cost, they need to feel a lot of confidence about buying … it makes it a good time to buy for those prepared to go for it.”
Mr Pena added that sales results were “property specific”. “Anything that stands out is getting a good result,” he said.
Avenue Auctions director Andrew Cooley said patchy results were a hallmark of a “normal market”, something not seen since Covid.
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Mr Pena said some the election was creating opportunities for buyers.
“In a boom everything sells well because there is a frenzy,” he said. “That’s not happening. What we’re seeing is cheaper homes, the special homes, get more interest.
“In many ways, Covid even changed what ‘normal’ looked like over the past few years, but we’re back to it being a more (balanced) market.”
About 60 per cent of auctions were expected to have cleared this week.
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HILLS TOWNHOUSE GOES HOT
Among the most competitive auctions on Saturday was for a Castle Hill townhouse offering the prospect of a more affordable entry point into the area.
The Brisbane Rd home attracted 10 registered bidders, with agent Ryan Hawes of McGrath-Northwest revealing there were 15 parties who had expressed strong interest throughout the campaign.
The Brisbane Rd townhouse in Castle Hill.
With fierce competition, the home sold for $1.28 million.
Mr Hawes said the initial price expectations before the auction campaign started were $1.1 million.
“The vendors were gobsmacked,” he said. “They had to ask me twice to confirm the price … they were overwhelmed.”
The buyer, a downsizer, was reported to have missed out on numerous other properties over previous weeks. The underbidder was also a downsizer.
“They were in something of a bidding war,” Mr Hawes said. “The townhouse was sought-after because it stood out from others … the homes that have struggled have been the ones where there are 10-15 in the area that are just like it.”
JANNALI HOME GETS $300K MORE IN A MONTH
A Jannali house sold at auction for $2.415m, $215,000 above reserve and $300,000 higher than the February price achieved for a similar house next door, built by the same owner.
13A Roberts St, Jannali sold for $300,000 more than it’s similar neighbour did in February.
Seven buyer parties registered to bid for the Roberts Ave home for sale through MattBlak Property.
Auctioneer Andrew Cooley said it was an impressive result given the next door home sold in February was “nearly identical” in scale and floorplan. He said the four-bedroom house that sold on Saturday “just had a better facade”.
INNER WEST DECEASED ESTATE SOLD $555K OVER
A deceased estate in the inner west suburb of Strathfield North sold under the hammer for $3.055m, $555,000 over reserve, after 10 buyers registered to bid.
24A Nelson Rd, North Strathfield sold for $3.055m.
Most of the interest in the 747 sqm property on Nelson Rd was from buyers wanting to knock down the original three-bedroom house and replace it with a new build, according to Dib Chidiac, director of selling agency DC&Co.
It was an “emotional” sale for the vendors because the home had been in the family for decades, Mr Chidiac said.
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