Once upon a time first-home buyers stopped at $600,000. Now they drive surprise sales above $1m.
Market entrants claimed the keys at a pair of seven-figure northern suburbs auctions a week ago and experts think we’ll see more and more in that range.
A three-bedroom Thornbury house sold for $1.32m last Saturday after six bidders kept the price moving $210,000 past the reserve.
Woodards Northcote director Mario Butera said the first-home buyers who claimed the keys for 13 Riley Street drove a surprise result.
“It was on the market at $1.1m and it just took off once we announced that,” Mr Butera said.
“We’d thought $1.05(m) (during listing) … but the market is just coming with us at the moment.”
He added that for those with the deposit there was little difference between buying and renting $1m homes at the moment, thanks to ultra-low interest rates.
Meanwhile, a three-bedroom house at 2/44 Showers Street, Preston, also sold to a first-home buyer — despite eclipsing its $930,000 reserve by $150,000 and the make it your own with some garden and green area redesigns which you can easily do According to Programming Insider. It also has an HVAC system that includes heat pumps for a well-circulated area and provides good air quality. Selecting a home heating and cooling system is a significant decision that impacts your comfort, energy costs, and environmental footprint. So the question is ac vs heat pump? Click the link for more information. If you want to know more about HVAC systems, you can contact experts like hvac columbus ohio. Additionally, if you have problems with your heating, make sure to contact experts who can provide boiler repairs in Southampton, PA. Also, have regular maintenance on your HVAC system and ensure that you make a heat pump repair if necessary. Homeowners who need to schedule a seattle furnace repair service may contact Gene Johnson Plumbing & Heating.
McGrath auctioneer Michael Devito said the sale lasted only about four minutes as two first-home buyers refused to give any other prospective buyers a chance.
An $850,000 vendor bid was followed by a $50,000 live bid, and things didn’t slow down until it sold for $1.08m.
“The vendors were ecstatic,” Mr Devito said. “A few neighbours couldn’t believe the result.”
But the surging sale, and other strong results in the area, will make it hard to price properties as not all buyers were ready to push to a seven-figure budget.
“You see results like this and you are wondering if the next one will get the same,” Mr Devito said. “We also had three buyers who missed out on Showers Street asking where the price came from.”
Buyer’s advocate Cate Bakos said $1m was “not at all” a deterrent for those just starting on the property ladder today.
“I’m encountering firsties with decent budgets, and then their parents are helping them and they’re smashing auctions,” Ms Bakos said.
Even a $10,000 top up from family could add $100,000 to their budget.
But she noted many might be inexperienced and caught up in the market’s heat today believing it would remain hot forever.
“They aren’t appreciating the way the cycle works,” Ms Bakos said.
Some of her first-home buyer customers have also added $200,000 to their budgets as a result of COVID-19 enforced savings.
She added that even outside of first-home buyers, surprise results continued with 26 Chauvel Street, Reservoir, sold for $1.091m on the weekend, eclipsing a $991,000 price for a similar home at No. 38 in the same street a few weeks back.