East Brunswick Balcony Sells for $1,500,500 Despite Interest Rate Concerns

He said higher interest rates were “definitely something to consider”. “But I think we are in a good position with his rental, at this point. From our point of view we can take that to the rental market.”

Some buyers are worried about the future of the housing market now, said Stefan Stella of Ray White, but others see it as an opportunity, while sellers are beginning to adjust.

“Anyone with a real reason to sell, they understand it’s not yesterday’s market,” he said. “Most people are used to what happens.”

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

Domain data, last month, showed the Melbourne auction clearance rate was 52 percent, the lowest since September 2020.

The average auction price in the Victorian capital fell below $1 million for the first time since April 2021, reaching $990,000.

A family home in South Yarra with the possibility of renovation was also up for sale under the hammer on Saturday, for $4.42 million.

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

Sold by Anthony Grimwide of RT Edgar Toorak to a professional couple.

“The real driving force right now is the lack of quality real estate in the market,” he said.

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

In Glen Waverley, a three-bedroom home made $2.06 million after four bidders competed in person and one online bid from Hong Kong, but the agent thought that was a slightly lower price than if it had sold a year earlier.

Offers started at $1.8 million for 5 Graham Street, and were recalled on the market for $2 million, said Andrew Demschke of Harcourts Judd White, for buyers planning to renovate and move in.

He thought it could have fetched $2.1 million, or $2.2 million, if he sold last year, but he said the number of buyers in the market has fallen.

“The rise in interest rates is sure to raise the concerns of buyers,” he said.

“A lot of people are evaluating the market which means a lot of real estate is coming to market… it would definitely be a better market for buyers and a tougher sellers market.”

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

It opened at $1.9 million, had a seller bid at $1.95 million, and sold for $2.35 million with three parties competing, he said.

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

“It looks like there are a number of buyers out there but they are being careful not to get caught up in something they get away with.”

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

Christian Lonardi of Nelson Alexander Fitzroy said the painting at 354 Fitzroy Street has attracted two bidders, and the winner is planning a long-term renovation and rental as a short-term commercial property.

He said higher interest rates are the focus of buyers’ attention, but the moves are now unexpected.

“Buyers have accepted the price hike, or they have gone up, and they can plan accordingly,” he said.

In East Melbourne, a one-bedroom apartment sold for $667,000 in a crowded auction with bagpipe player – Marcus Wilson of Professionals Whiting & Co.

Two bidders paid the auction for 10/98-106 Vale Street above its $650,000 reserve.

“We are confident that even with higher interest rates, there will be no doom and gloom,” he said.

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

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