No bids for Brunswick Victorian house priced $110,000 below 2017 valuation

Buyers declined to put their hands up at the auction of a Brunswick house, even though it was priced $110,000 less than its valuation nearly two years ago.

Across Melbourne, buyers are hesitating at many auctions, agents say, although certain homes are still fetching strong results.

In Brunswick, a two-bedroom Victorian freestanding home was auctioned on Saturday, with a crowd of two dozen gathering for the sale.

The recently updated house at 13 Evans Street had a quoted price range of $780,000 to $820,000.

Before the proceedings, auctioneer and Raine and Horne agent Robert Elezovic told the crowd it had been valued at $930,000 in 2017, the peak of Melbourne’s market.

It had brought solid interest before auction, with about 60 inspections and multiple offers.

“We had a couple of offers at the low end of the asking price and it wasn’t enough to take the property off the market and we wanted to see what interest there was,” Mr Elezovic said.

But when it came time to bid, no buyers put their hands up. The sole bid was the vendor bid, setting the price at $780,000.

Following the auction, several attendees inspected the house again. Mr Elezovic said it was still normal to sell property after auction.

“It’s becoming a part of the usual practice and buyers are reluctant to participate when they see no one else is participating,” he said. “What I’m finding personally is that we’re selling them two or three days after the auction.

“The foot has come off the accelerator a little. Buyers are more tentative than what they were.”

Despite some recent weak results, Mr Elezovic said he was still committed to the auction process.

“The important thing is to not give up on auctions. They’re a popular method of sale and they do work,” he said.

The home was later listed for sale with an asking price of $805,000.

It was one of 473 auctions held across Melbourne on Saturday.

By evening, Domain Group had recorded a 56.7 per cent clearance rate from 326 reported results.

Earlier in North Melbourne, a three-storey terrace with a shared backyard sold after a two-horse race.

The eventual winning bidder at 7 Canning Street, an older man buying on behalf of his child who had their own young family, bid in awkward increments to secure the house.

The quoted price range was $1.65 million to $1.79 million, and the auction opened with an offer of $1.58 million. Auctioneer Nick West of Nelson Alexander placed a vendor bid of $1.68 million, and then the auction took off.

It sold for $1,868,000 to the young family.

Nelson Alexander agent Charlie Barham said the home had done well because of the shared backyard, which is on the title as an undivided share between number 7 and the three terraces to the east.

“It’s very UK style and all four families that live here share it. It’s in a body corporate style but it’s all really informal. It works really well, particularly in North Melbourne,” he said.

“It’s not something I’ve seen before, it’s really unusual and I think that’s why we drew a crowd today and this was really popular.”

Further south in McKinnon, a family home in the McKinnon Secondary College school zone sold in post-auction negotiations to an investor.

Woodards agent Ben Quigley said three bidders participated in the process for 28 Osborne Avenue, but allowed it to pass in. The investor nabbed it for $1,325,000.

Its quoted price range was $1.3 million to $1.4 million. The post-auction negotiations showed that buyers were still cautious, Mr Quigley said.

“It’s only five or six doors from the college so it was a good investment,” he said. “They’ve taken advantage of a good time to buy.

“I just think personally it shows people are stepping up and buying good-quality real estate and they have the opportunity to buy property at 2019 prices so they’re doing that.”

In St Kilda East, an architecturally renovated home sold to downsizers who swooped in at the last minute with some late bids.

McGrath agent Josh Stirling said the home at 18 McHenry Street was top quality, because the architect who designed the home had done so for his mother.

“We thought, ‘If you wouldn’t put in your best effort for your mum who you would do that for?’” he said.

Two bidders went toe-to-toe from $1.8 million for the four-bedroom home, and it was declared on the market at $2 million.

The downsizers began bidding after it reached reserve, and purchased the property for $2.07 million.

“Within a few minutes of walking in to the first open [the buyer] fell in love with it and it was the house he had to have,” Mr Stirling said.