The properties that were sold through the reserve or when property prices fell were passed on

By March, domain numbers showed Melbourne’s prices were on the way down, recording a 0.7 percent drop in the first three months of 2022.

This Yarraville home sold for $1,377,500, well over the asking price.

This Yarraville home sold for $1,377,500, well over the asking price.Credit:Chris Hopkins

Buyers were much more selective about the properties they bid on but still wanted to get on the market and a three bedroom house in Yarraville was selling under the hammer in minutes.

The renovated Edwardian-era home at 15 Fielding Street sold for $1,377,500, above the $1.25-$1.33 million price guideline.

“The good stuff is still selling, but buyers are particularly picky and picky, there aren’t the aggressive urgent bids that we had when lockdown ended last year,” said Joseph Luppino, director and auctioneer of Village Real Estate, after the auction.

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The general election was held in May, but it was the rising cost of living and the Reserve Bank’s first rate hike in a decade that rocked the market.

Buyers suddenly realized they couldn’t borrow as much money and would face higher mortgage payments.

Sellers understood that this would depress house prices and held back from listing their houses for sale.

Through the June quarter, home prices fell another 0.9 percent as bidders tried to get a better deal by auctioning off homes and then bargaining.

A renovated Edwardian building at 57 Peel Street, Newport submitted a seller bid of $950,000. The home, which had a guide price of $950,000 to $1.02 million, later attracted calls from a dozen interested buyers and sold for $980,000 a few days after the auction.

Nathan Gleeson, senior sales advisor for Reside Real Estate, said first-time buyers were interested in the home but did not bid because of concerns about falling home prices, rising interest rates and the rising cost of living.

A cat watched the Newport auction but didn't bid.

A cat watched the Newport auction but didn’t bid.Credit:Jason South

After months of interest rate hikes, home prices fell at their fastest pace in September, down 4.5 percent since July, hitting both buyer and seller confidence.

In October, a $3.9 million offer was made by a single seller for a four-bedroom home in North Melbourne owned by Australian actress Sigrid Thornton and her husband, a film producer, Tom Burstall.

The house was marked as sold on Nelson Alexander’s list in December.

Australian actress Sigrid Thornton and the home of her husband, film producer Tom Burstall, have bid $3.9 million at auction.

Australian actress Sigrid Thornton and the home of her husband, film producer Tom Burstall, have bid $3.9 million at auction.

Even two of the five newly built and renovated villas are shown on reality renovation TV The block handed over at Gisborne when the auctions took place in November.

Contestants Ankur and Sharon’s home has been sold in renegotiations, while Dylan and Jenny’s home is still for sale.

And in exclusive Toorak, a home next door to that of billionaire Premier Investments chairman Solomon Lew, after it was auctioned in November.

The Albany Road home was sold with a bid of $10.6 million. Marshall White director Justin Long declined to cite the price or the buyer after the sale was negotiated.

Next year Melbourne’s auction market will face the same challenges of higher interest rates, falling house prices and cost of living pressures.

Ray White Victoria CEO Stephen Dullens expects 2023 to be much like this year, with some homes selling well while others will face greater challenges.

“What has fundamentally changed since COVID is that shopper behavior is very different now,” Dullens said. “Buyers are doing more research, they’re not rushing into the market like they used to, and sellers are becoming more realistic.”

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https://www.smh.com.au/property/news/the-melbourne-auctions-that-finished-with-a-bang-or-a-whimper-in-2022-20221213-p5c5yb.html?ref=rss&utm_medium=rss&utm_source=rss_property The properties that were sold through the reserve or when property prices fell were passed on

Brian Lowry

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