A five-bedroom brick and tile home on Auckland’s North Shore sold under the hammer this week for $2.425 million after just seven days on the market.
Bayleys agent Victoria Mules, who was marketing 5 Coronation Street, in Belmont, with colleague Jemma Glancy, said they were “gobsmacked” when they received a pre-auction offer of $2.2 million - a cool $1 million above the property’s 2017 CV - three days into their campaign.
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The family who made the pre-auction offer still faced four other bidders at the Bayleys auction on Thursday and they had to throw in an extra $225,000 to secure the home.
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Mules said the buyers were happy with the result and had gone all out for the home because of it’s the school zone it was in.
She said the family had bought before selling their own home so they didn’t lose out.
"People don't want to sell when they don't have a property to buy, it's too nerve wrecking as the market is moving by the minute for them," she said.
The result was a win for the vendor as well. OneRoof records show the property last changed hands in July 2009 for $655,000, delivering profit, on paper at least, of $1.77 million.
Mules also found auction success this week with another home she was marketing.
A three-bedroom plaster home on a cross-lease section at 2/55 Parr Terrace, in Castor Bay, sold for $2.34 million under the hammer – more than $200,000 above CV.
The buyer, who had put in a pre-auction offer of $2 million, secured the property after strong competition from three other bidders on the day of the auction.
Like the new owners of 5 Coronation Street , the buyer had also purchased before selling.
Mules said the property had proven popular because there was not much available in Auckland at that price range.
"Even though it's plaster, it's pretty crazy. That $2 million to $3 million [price bracket] is the new $1.5million," she said.
2/55 Parr Street, in Castor Bay, in Auckland, sold under the hammer for $2.34 million. Photo / Supplied
Bindi Norwell, chief executive of the Real Estate Institute of New Zealand, said the lack of inventory in the market – numbers are 20.6% down on the same period last year - meant there was less choice for those looking to either buy or move house.
“The lack of total inventory means that there is more pressure on house prices – particularly for ‘good’ properties in ‘good’ school zones. There is increased FOMO in the market and people who are purchasing before they sell are likely to be worried they won’t be able to find somewhere new to live before the settle on their existing property," she said.
