Rate hikes could start to erode the confidence of buyers and sellers across Sydney, as experts warn of an increasingly cautious market.
While many auctions around Greater Sydney today claimed above-reserve results, rising interest rates could sow the seeds of doubt across the market, as David McMahon, head of auctions at Ray White NSW, notes they “appear to be reshaping behaviour”.
“Our auctioneers are reporting a higher proportion of properties sold pre-auction – now 24 percent – compared to recent months, as sellers show a greater willingness to consider strong pre-auction offers,” he said.
Each of the country’s four major banks raised variable interest rates on home loans by 25 basis points at the end of last week.
Auction visitors this morning in Greenacre. Photo: Thomas Annetts
Mr McMahon said a total of 164 auctions were scheduled for Ray White in NSW today, a notable drop 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 more caution in the current interest rate environment, results indicate that demand is still there,” he said.
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Ray White NSW head of auctions David McMahon. Photo: John Fotiadis.
According to McGrath Revesby’s Matthew Laface, since the RBA’s decision on cash rates, interest rates have only been set to hurt buyer activity in the domestic markets.
Mr. Laface said he “hadn’t really seen it in its entirety,” especially in his region.
“It doesn’t feel like interest rates were impacting 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 $1.873 million.
The sale cleared the home’s reserve by $173,000.
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52 Rowland Street, Revesby was sold at auction for $1.873 million.
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 house was bought by a young lady from Bankstown.
Interest came mainly from young couples and families, Mr. Laface added, noting that buyers in the area have not been deterred by interest rate increases.
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16/27A Eaton Street, Neutral Bay
In the apartment market, auctioneer Edward Riley said the right properties are attracting strong competition.
He sold a unit in Eaton St in Neutral Bay today for $840,500; a result $90,500 above reserve.
The property had 10 registered bidders at the auction today, which Mr Riley said showed the strong competition in this price range.
“Today’s result shows that there are still first-time home buyers willing to compete fiercely for quality properties, especially in blue chip segments like Neutral Bay,” he said.
“Despite the wider market noise, the sub-$1 million market remains a hotly contested battleground, driven by buyers determined to gain a foothold close to the city.”
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Brothers Darrin and Kevin Querin place the newly sold sign on their parents’ estate. Photo: Thomas Annetts
Elsewhere, an emotional auction in Greenacre saw two brothers close a 60-year chapter for their family as they carried out the sale of their parents’ estate.
The three-bedroom house at the end of Illawong Cres had been owned by the Querin family for more than sixty years.
Brothers Darrin and Kevin Querin grew up in the red brick house, where their parents hosted family events in the backyard.
“Our parents love to have parties here,” Darrin said.
“The back area is great for entertaining and there were always people around for a barbecue.”
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The family home on Illawong Cres, Greenacre
Their father, Peter Querin, emigrated from Italy to Sydney after the Second World War.
“He came here with nothing,” Darren said.
“Without a cent in his pocket and without speaking English, he became quite successful.
“He ended up as a leading engineer in the industry.”
Mr Querin’s name is listed on the National Monument to Migration in Darling Harbor and according to Darrin he was also a translator for the Italian Olympic team at the 2000 Olympic Games.
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Mr Querin’s name is listed on the National Monument to Migration at the Australian National Maritime Museum in Darling Harbour. Photo: James A/TripAdvisor
The Querin family home sold at auction for $1.36 million, a result $30,000 over reserve.
Of the three registered bidders, only two bidders were active, during a quick auction that lasted approximately seven minutes.
Craig Stephenson from Ray White Bankstown said the original house was “still in good condition”.
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Darrin Querin (center), wife Julie (left) and brother Kevin (right) celebrate the emotional sale of their family’s home. Photo: Thomas Annetts
Mr Stephenson noted that buyers were only “a little wary” after this month’s cash rate increase.
“Overall, however, buyer confidence has still been good in recent weeks,” he said.
“The supply at the moment is probably a little lower than last year.”
The home’s sales price fell just below Greenacre’s median of $1.445 million for a three-bedroom home.
Mr Stephenson said the buyers, a local family, bought the house to be closer to one of their relatives, who lives just two blocks away.
The Querrin’s were delighted to see the house go to another family, with Darrin saying the house had been passed “on to the next generation”.
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To the north, a four-bedroom slice of grandeur in Gordon sold for $3.998 million.
The sprawling home exceeded its reserve by $148,000 and sold for $248,000 more than the suburb’s average price for a four-bedroom home.
The property is being sold by Jing Peng of LJ Hooker Gordon and is set in 1,005 sq m of private land and features a 15 meter swimming pool, landscaped gardens and multiple formal and informal living areas.
Four bidders vied for the home on Highlands Ave, between Gordon and Pymble.
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