The South Yarra home goes up for auction and then sells for $1.8 million

Renegotiations ensued and the parties reached a $1.8 million deal. McCormack declined to comment on the reserve price.

“The trend of three- and four-bidder auctions in the 2021 market heat has certainly eased, but we’re still seeing a very strong interest in auctions,” he said.

“Whether it’s one bidder, two bidders, or three bidders, the beauty of the auction system is that you come in as the highest bidder [if a property is passed in] and discuss with us and we will negotiate a result.”

He said 51 groups were through during the campaign, adding that the homes are still being sold as buyer demand has been boosted by the scarcity of properties on offer.

Elsewhere, a downsizer bought a three-bedroom red brick veneer home in Oakleigh South for $950,000.

Five bidders made bids for the one-story townhouse at 1/39 Golfstrasse, which was listed with a guide price of $800,000 to $880,000.

Bidding started at $820,000 and quickly rose to $900,000, after which the pace slowed, said Ray White Oakleigh sales agent Leigh Kelepouris. He declined to disclose the reserve.

A mix of investors, downsizers and first-time homebuyers have expressed interest in the property, he said.

“It’s definitely a story of two markets. Houses that are being renovated, there’s nothing to do, are doing exceptionally well,” he said. “Homes that need a little work — unless they’re competitively and aggressively priced — struggle a bit.”

Buyers already had a few more rate hikes factored into their plans, but some owners were reluctant to enter the market, meaning inventory was tight, he said.

In Caulfield North, an investor beat an owner-occupier for a three-bedroom Art Deco condo, paying $1.02 million.

The ground floor unit at 1/440 Dandenong Road sold above the asking price of US$880,000 to US$950,000.

Jellis Craig Carnegie sales agent Michael Minic wished he had about 50 similar “cracking” Art Deco blocks for sale every weekend. He declined to disclose the reserve.

Minic sees more qualified buyers viewing homes than people just watching.

“Interest rates are a factor. However, the smart money buys,” he said.

North of the river, a Brunswick patio and backyard was still available after a $1.25 million seller bid was made.

The one-story, three-bedroom semi-detached home at 52 Edward Street has sold at auction with a target price of $1.25 million to $1.35 million. It was subsequently advertised with a target price of $1.34 million.

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Jellis Craig Fitzroy sales agent Johanna Doherty said two potential buyers have already come forward to express interest.

“There’s still a lot of buyers out there,” she said after hosting another open house in Clifton Hill on Saturday, which featured 26 parties.

“Some people are new buyers, so they don’t know exactly what they want or what they can afford.”

In Reservoir, three first-time homebuyers competed for a three-bedroom family home in need of modernization.

The bidding opened with a seller’s bid of $700,000 for 65 Yarra Avenue and then rose to $745,000 when it was submitted.

The home sold for $772,500 in post-auction negotiations, said Ray White Preston sales agent Ian Dempsey. He declined to disclose the reserve, but the pricing guideline was $730,000 to $800,000.

First-time homebuyers are probably the largest pool of buyers in the Reservoir and Preston area right now because they saw value for money, he said, adding that many buyers have become accustomed to the string of rate hikes.

“Shoppers have realized it’s a good market to shop in,” he said. “There’s a bit of activity now because they don’t want to miss the downturn, they don’t want to miss the bottom.”