Sydney’s housing market has come back down to earth as the excitement from February’s interest rate cut abates, ushering in a return to “normal” market conditions, agents claim.
The initial announcement of lower interest costs had driven a frenzy of buyer activity in the second half of last month, driving the biggest monthly gain in Sydney home prices in nearly 10 months.
Prices appear to still be inching up but the success rate of auctions has largely returned to the long-term average.
About 64 per cent of auctions delivered a result last week and preliminary figures indicated a similar outcome from this week’s 900 scheduled auctions – in line with the decade-average for auction clearance rates.
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Ray White agent Liana Power following the auction of 28 Vernon St, South Turramurra, which sold for 2.67m. Picture: Richard Dobson
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Real estate agents told the Sunday Telegraph there were a lot of active buyers relative to the number of listings but most home seekers remained highly selective or “picky”.
These buyers were often prepared to dig deep into their pockets and battle it out at auctions for the homes they recognised as value while letting other buying opportunities pass by.
This meant far-ranging results for sellers, with some getting prices hundreds of thousands above their reserves while others, sometimes just streets away, struggled to attract more than a single bidder.
A common theme among the most competitive sales was a larger land allotment. Other strong sales were for “ugly duckling” type properties offering a chance to get into coveted suburbs for a lower price and add value through a renovation.
28 Vernon St, South Turramurra attracted 10 bidders at auction.
Bidder fireworks were observed at the auction of a three-bedroom house in north shore suburb Turramurra, which offered both: a large land allotment at 953sqm coupled with an original condition house.
Selling agent Liana Power of Ray White Upper North Shore said more than 70 groups of buyers inspected the Vernon St home in the lead up to the auction and 10 registered to bid.
The home sold under the hammer for $2.67m – about $220,000 above the reserve. It was the first time the house had been up for sale since it was built in the 1960s.
Ms Power said the sellers were “thrilled” with the result. “They had been keeping an eye on the market but they hadn’t expected it to sell for as high as it did.”
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Ms Power shakes hands with one of the members of the party that bought the home. The buyers are allegedly planning to build a new home. Picture: Richard Dobson
She added that there had been a lot of excitement when rates were first cut, but since then a lot more properties have come on the market to balance out the increase in buyer demand.
Auctioneer Tom Van, who received bids from seven of the registered parties, said sales results was property specific in the current market.
“It comes down to the right property,” he said. “This one offered a good entry point in South Turramurra.
“If a property doesn’t tick all the boxes, buyers are prepared to move onto the next one.”
It’s understood the buyers are planning a knockdown rebuild and will re-sell the property down the line.
HUGE WIN FOR INNER WEST SELLERS
A home seller in Ashfield pocketed a price six times higher than what they paid for their four-bedroom house in the early 2000s.
28 Service Ave, Ashfield.
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The gavel dropped on the Service Ave home at $3.1m. The home had last sold in 2001 for $519,000, records showed. Bidding opened at $2.73m, in line with what comparable sales had suggested the home was worth, but the bids kept rising.
Ray White selling agent Matt Carvalho said: “Buyers are continuing to be selective. If they don’t see value … they’re simply not moving on it.”
SUTHERLAND SHIRE SALE 50 YEARS IN MAKING
A four-bedroom Woolooware house has changed hands for the first time since it was built 50 years ago, selling under the hammer on Saturday for $2.42m.
1 Edinburgh Close, Woolooware sold for $220,000 over reserve.
The price was $220,000 above what had been a more optimistic reserve given an online valuation indicated the market value was about $2.1m. There were five registered bidders.
Auctioneer Andrew Cooley, who called the sale on behalf of agents Gibson Partners, said the home offered scope for improvement. “There aren’t many like it in that area,” he said.
“BUBBLING ALONG” IN NORTH WEST
A home in Kellyville sold for $115,000 above the 2022 price at a crowded auction.
About 50 people squeezed into the living area for the auction to escape the sweltering heat, including eight registered bidders.
23 Jupiter Rd, Kellyville sold for nearly $2m.
Auctioneer Michael Garofolo calls bids on 23 Jupiter Rd, Kellyville.
The price for the Jupiter Rd home was $1,955,000, which was marginally above the $1.95m reserve.
Auctioneer Michael Garofolo, who called the auction on behalf of The Studio Estate Agents, said competition in the west was generally stiffer.
“The cheaper prices are probably a factor,” he said, adding that it was the highest price paid for a single level home in the area this year. “Things in the west are bubbling along.”
SOUTHWEST FIXER UPPER SELLS FOR $1.7M
A dated house in Punchbowl in need of some repairs sold under the hammer for $1.7m, which was about $200,000 above expectations. There were eight bidders for the Henry St home.
60 Henry St, Punchbowl sold for $1.7m.
The Punchbowl home was held by the same family for 80 years.
“The home has been in the family for about 80 years,” said lead agent John Yatman.
“The buyers are a young couple whose parents live across the road. I also had a few neighbours interested in it too. It was mainly locals looking to renovate the home and live in it but there were one or two thinking about rebuilding.
“I would say the location was the drawcard since we had the neighbours fighting over it.”
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