10-05-2025
Reserve Bank rate cut forecast linked to Melb auction results that shot $300,000 past reserve
Multiple Melbourne homeowners have been left with shock home sale results that will see them walk away six figures better off than expected.
In one of yesterday's most unexpected sales, a four-bedroom Victorian era house delivered a $1.175m result despite only having an $880,000 reserve price.
In its first sale since 1946, the 16 Station St, Coburg, home had been the residence of the same family since the 1930s — when the moved in to it as tenants, before going on to purchase it off their landlord.
Nelson Alexander's Ryan Currie recorded an $840,000 opening bid, with five bidders subsequently jumping in.
In the end the bidding came down to a couple with a chihuahua, and a young man with his parents in tow.
It went to the couple, but that didn't stop the underbidder heartily congratulating them afterwards.
But Mr Currie said even more prospective bidders had cooled on the property overnight before the auction, choosing not to bid.
'It had the train line behind it, and while it had good bones, a number of people decided not to go so hard,' he said.
Mr Currie added that it seemed with the prospect of an interest-rate cut in a week's time while some buyers had lost their nerve, a result $295,000 above expectations showed others had clearly felt that now was the time.
Another blow out result in Ferntree Gully also left the vendors and agents in shock, in a further sign the market is anticipating home values to rise with future rate cuts.
Jellis Craig's Andrew Luke had four bidders pursue 27 Stringybark Close, three of them downsizers.
'And they were cashed up and just ready to go,' Mr Luke said.
While the home had a $1.4m reserve, the top of its price guide, the buyers had other ideas — driving the sale to a whopping $1.78m.
'All of the buyers had said prior they couldn't go much past the advertised price,' he said. 'But in my preamble I said to everyone 'buy now', as if it's a half a per cent cut in May, we know that when interest rates go down, prices go up.'
The agent added that home sellers with a single-level floorplan were particularly well placed for strong sales.
