East Brunswick terrace sells for $1,500,500 despite interest rate worries

Interest rate hikes are “certainly something to consider,” he said. “But I think we are in a good position to rent him, at this stage. From our point of view, we can pass this on to the rental market.

Stefan Stella of Ray White said some buyers were concerned about the outlook for the housing market, but others saw it as an opportunity, while sellers began to adjust.

“Anyone who has a real reason to sell understands this isn’t yesterday’s market,” he said. “Most people have gotten used to what’s going on.”

The Reserve Bank this week raised interest rates another 50 basis points to 1.85%, reducing the amount buyers can borrow to spend at auction.

Last month, Melbourne’s auction clearance rate was 52%, the lowest since September 2020, according to domain data.

The Victorian capital’s median auction price fell below $1million for the first time since April 2021, hitting $990,000.

A South Yarra family home with potential for its own renovation also secured a sale under the hammer on Saturday, for $4.42 million.

The four-bedroom residence at 26 Hawksburn Road attracted four parties and sold for $620,000 on the $3.8 million reserve. The reserve was set at the top of the price guide from $3.5 million to $3.8 million.

It was sold by RT Edgar Toorak’s Anthony Grimwade to a professional couple.

“The real driving force at the moment is that there are so few good quality properties on the market,” he said.

“I don’t think people are putting their homes on the market in the numbers that we would normally see.”

In Glen Waverley, a three-bedroom house fetched $2.06million after four bidders competed in person and an online auction from Hong Kong, but the agent believed it was a price slightly lower than if it had been sold a year ago.

Bids started at $1.8 million for 5 Graham Street, and they’ve been called on the market at $2 million, Harcourts Judd White’s Andrew Dimashki told buyers who plan to refresh the home and… move there.

He thought it might have fetched $2.1 million or $2.2 million had it sold last year, but said the number of buyers in the market had dwindled.

“Interest rate hikes certainly scare off our buyers,” he said.

“A lot of people are doing market appraisals, which means a lot of properties are coming on the market…It’s definitely going to be an improved buyer’s market and a tougher seller’s market.”

Morrell and Koren buyer’s agent Matt Cleverdon went to the auction at 3/17 Manor Street, Brighton, a three-bedroom bayside villa which attracted downsizers.

It opened at $1.9 million, got a seller’s offer at $1.95 million, and sold for $2.35 million as three sides went head-to-head, a he declared.

“The mood in the market is probably one of cautious optimism,” he said.

“There seem to be a number of buyers, but they are cautious and don’t get involved in anything that gets out of their hands.”

In Fitzroy, a converted warehouse that could have been used as residential or commercial property sold for $2.83 million.

The pad at 354 Fitzroy Street attracted two bidders and the winner plans to do a long-term renovation and rent it out as a short-term commercial property, said Kristian Lunardi of Nelson Alexander Fitzroy.

He said interest rate hikes are a priority for buyers, but moves are less unexpected now.

“Buyers have accepted rates going up, or they have gone up, and they can plan accordingly,” he said.

In East Melbourne, a one-bedroom apartment facing the park sold for $667,000 in a lively auction with a piper – Marcus Willson of Professionals Whiting & Co.

Two bidders pushed the bid for 10/98-106 Vale Street above its reserve of $650,000.

“We are confident that even with increased rate hikes, there will be no bad luck,” he said.

“If you are a seller and a buyer in the same market, everything is relative.”

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Stephen V. Lee