Michmutters

The Ormond sale came amid a hot and cold Melbourne auction market, where some homes are selling for more than expected while others pass in.

There were 558 auctions scheduled in Melbourne on Saturday. By evening, Domain Group recorded a preliminary clearance rate of 62.4 per cent from 420 reported results, while 43 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.

This is the first time Melbourne’s preliminary auction clearance rate has been above 60 per cent this winter. A clearance rate above 60 per cent is considered a balanced market, and the last time Melbourne exceeded this threshold was on May 28 at 63.7 per cent.

In Croydon, a four-bedroom home sold to a family moving from Vermont for $1.2 million, after they beat a local real estate agent for the keys.

The modern home at 51 Wicklow Avenue sold at the top of the price guide of $1.1 million to $1.2 million.

Bidding opened at $950,000, with a quick succession of offers taking the price to $1.1 million, before the increments fell to $20,000 and $5000.

McGrath Croydon principal agent Paul Fenech said the vendor, who had owned the property since 2015 and had built another property at the back of the block, was happy with the sale.

Fenech said while properties in the higher end of the market were selling, others were finding it tougher as interest rates rise.

“A lot of buyers who don’t need to buy right now are holding off because they think it [prices] will drop more,” Fenech said. “Younger buyers are the ones who are making lower offers – like $10,000 lower – because they’re worried about the interest rate rises.”

North of the city in Essendon, a buyer who made the winning bid of $2.31 million on a four-bedroom house at 42 Forrester Street, is now planning to tear down and rebuild on the block.

Nelson Alexander Essendon partner David Vaughan said five bidders competed at the sale, and the winner bid even though they had not been taken through the home until auction day.

“The buyer just rolled up on the day and took a quick look inside before the auction,” Vaughan said. “There were a few other developers that jumped in, so it turned out to be a big auction with a big crowd.”

In Brunswick East, a fully renovated terrace home at 123 Barkly Street sold under the hammer for $2.19 million to a young family looking to upsize to the area. They were one of two similar parties at the auction of the four-bedder.

Nelson Alexander Carlton North selling agent Charlie Barham said despite negative reports on the market, well renovated homes were still getting good prices.

Those that needed work were more difficult to sell as building costs rose and builders became scarce on the ground, he said.

“Building costs are one thing, but trying to find a builder who’s available is very tough,” Barham said.

The auction was across the road from a house that sold last weekend at 110 Barkly Street, where the buyers spent $1,500,500 on a terrace that had scope for renovation.

Not all homes sold under the hammer. A Greensborough house passed in, then sold directly after for $710,000.

The three-bedroom fixer upper at 5 Russell Street drew two bidders but passed in on an offer of $695,000.

Morrison Kleeman Greensborough auctioneer Mark Walker said the home needed a major renovation making it a tougher sale.

“It needs a hell of a lot of work and is not profitable in its current state,” Walker said.

The buyer who was in the building industry would be looking to fix up the home themselves, he said.

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A time capsule in Reservoir also did not sell under the hammer. The three-bedroom home at 70 Queen Street had a $1.2 million guide, but passed in a vendor’s bid of $1 million.

Ray White Reservoir selling agent Matthew Clark said buyers’ agents were negotiating with interested buyers on Saturday, hoping to finalize a sale.

“It could still sell today, or early next week,” Clark said.

The pair said they were looking for the right place rather than timing the market.

“We were really just waiting for the right place to come along… [interest rates] obviously plays into it. That’s a factor for everyone right now. We definitely have that in mind, but we’re pretty happy,” Charmaine said.

Raine&Horne Marrickville’s Filippo D’Arrigo said the auction went to plan with four expected registered bidders on the day and reasonable vendors, who were also upgrading.

“The vendors were realistic. There were no doubts when we asked the question [of reducing the reserve],” D’Arrigo said. “They were listening to the market and happy to go through the process.

“Today was a true representation of a good quality home. It was a real family home and there were people who wanted to buy it.”

The home last traded for $1.48 million in 2017, records show.

Marrickville’s median house price grew 24.4 per cent to $1.97 million in the year to June on Domain data.

In Double Bay, a cashed-up local downsizer picked up a one-bedroom unit for $2,005,000.

Six of the eight registered buyers placed a bid on G01/8 Patterson Street, which opened at $1.52 million.

Despite falling short of the $1.6 million guide, McGrath Paddington’s Georgia Cleary said the property was on the market within three bids, surpassing the $1.58 million reserve.

Clearly said the standout result was ultimately down to the property’s quality.

“If there is a point of difference then that is reflected in the price … in a normal market you see the better properties getting better prices, which should be the way,” she said, adding that the boom six months ago was “artificial” and could never last.

“This is a more sustainable market, and it’s better for buyers and sellers. There is a lot of local money and local interest to buy property.”

Double Bay’s median unit price grew 19.8 per cent to $2 million in the year to June.

In Concord, a young couple with triplets bought a 1950s art deco full brick house for just shy of $4 million with plans to build their dream home.

Four out of the seven registered buyers placed bids on 4 Sanders Parade, which had no price guide.

The auction was quick to start at $3 million and the handbrakes went up at $3.9 million, where the agents and Cooley’s auctioneer Michael Garofolo said they had to “really earn our keep”.

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The vendors eventually reduced their $4 million reserve and the highest bidders and sellers met at the final price of $3.94 million.

“The market is still there, buyers are still there; as long as you’re realistic, you’re selling,” Garofolo said.

“That’s still a premium price, we have to get our heads out of the clouds from six months ago. Yes, the market has come back, but it hasn’t fallen off a cliff.”

In Lane Cove West, a local family purchased a three-bedroom property that hit the market for the first time in over seven decades for $2.45 million as an investment.

The successful buyers outbid six other registered parties, including two online bidders who kicked off the auction for 34 Wood Street at $2 million.

The Agency North’s Shane Slater said the buyers were planning to do a minor renovation to rent it out before moving in after a few years.

“They’re going to do paint and carpets, a bit of a tidy up then rent it out for the next three to five years,” Slater said.

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“It’s really sought after. Six months ago, it probably would have gone for $2.6 million. These people are pretty astute buyers now, jumping in now to get it at that price.”

The reserve was $2.2 million.