Home sellers across Sydney have been walking away from auctions smiling after getting unexpectedly large sums under the hammer, with some breaking price records.
The vendors have been cashing in because of a spring surge in buyers, coupled with a slump in the number of listings.
This has encouraged keen buyers to up their offers to secure the properties they want or risk losing out to other home seekers.
A family who had kept their Drummoyne home for 60 years were rewarded with a price nearly $320,000 over their $1.8 million reserve yesterday.
Auctioneer Ben Horwood dropped the hammer at $2.18 million in front of a crowd of about 40 people, including six registered bidders.
Bidding for the property at 29 Dening St started at $1.905 million — more than $100,000 above the price guide — and four bidders put their hands up to submit offers.
The buyers were a local family who were considering renovating the property at some point in the future.
Underbidder Ellena Mangavoulakis said her family decided to drop out the auction because it looked like the buyers were certain to pay over $2.2 million.
“We just thought it wouldn’t make sense paying that kind of money and then still renovating,” she said.
Selling agent Alessio Scivetti of LJ Hooker-Drummoyne said the home attracted considerable buyer interest because of the 543sqm parcel of land within a short walk of Drummoyne Bay.
“It’s a bigger block for the area,” he said. “There’s also a real shortage of quality stock at the moment.”
Mr Horwood said there was renewed energy in the market and this was helping sellers get “great” results — especially long-time homeowners.
In nearby Chiswick, 12 bidders registered for the auction of a three-bedroom house on Burns Crescent — a location about a block from the water.
The bumper turnout helped the property sell under the hammer for $3.1 million — $400,000 over the $2.7 million reserve. It is the highest price recorded for a Chiswick home in seven months.
Selling agent Fayez Yammine of Devine Real Estate said it was a competitive auction.
“Bidding opened up strong at $2.7 million, slowed around $2.9 million, then took off again,” he said.
The buyers were a local family who put in a knockout bid $90,000 above the underbidder’s highest offer.
A four-bedroom house on Moore St in Drummoyne sold for $2.355 million.
In the Hills District, the sellers of a three-bedroom home on a prized 696sqm block in Castle Hill walked away with $1.508 million, beating the street record for a three-bedroom house sale.
Thirty buyers registered for the auction of 12 Drayton Ave and bidding opened at $1.2 million.
Selling agent Ethan Tomajek could not disclose the reserve price but said initial feedback from buyers indicated the home would sell for about $1.3 million.
In Baulkham Hills, the auction of a five-bedroom house on William Thompson Way attracted 24 registrations in what selling agent Will Hampson said was “one of the best auctions I’ve seen”.
The home sold for $1.85 million, $250,000 over the reserve. It was also the highest price paid for a Baulkham Hills home so far this year, according to CoreLogic records.
“It’s in a quiet cul-de-sac and the buyers knew the location really well so they went for it,” Mr Hampson said.
In the eastern suburbs, two adjacent blocks were sold under the hammer for $7.355 million to a local developer.
The auction for the blocks at 87 and 91 Middle St in Kingsford attracted eight registered bidders.
The blocks were among about 630 properties to go under the hammer.
Preliminary figures suggested about 75-80 per cent of the auctions were a success for the vendors.
This was largely in line with the bumper sales period recorded over the past three months, when 74 per cent of Sydney auctions cleared, according to CoreLogic’s latest quarterly auction review report.
The clearance rate was measured across 6373 auctions, down from 6740 auctions at the same time last year when the clearance rate was just 51 per cent.
CoreLogic head of research Tim Lawless said it was a “remarkable” rebound for the market.
“The lift in clearance rates highlights a better fit between buyer and seller pricing expectations and some urgency creeping back into the market,” Mr Lawless said.
He said that renewed sense of energy came as “a larger pool of buyers compete for a smaller than usual number of homes for sale.”
The suburb with the highest clearance rate was Marrickville in the inner west, where 97.4 per cent of auctions over the past three months were successful.
The city region with the most successful auctions was the northern beaches, with a clearance rate of 81 per cent.
“There is a strong likelihood advertised stock levels and the number of scheduled auctions will progressively rise as spring progresses and vendor confidence lifts on healthier housing market conditions,” he said.