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Under the hammer: No sign of the hot market losing steam

Last week’s auction results show the property market is yet to cool down despite the prediction that colder weather could deter buyers.

Last Saturday saw two bidders fight it out at a Harris Real Estate auction at 48 Tarlton Street, Somerton Park.

The beachside home smashed its “conservative” reserve price of $1.65million, selling for $2.2millon.

Harris Real Estate Managing Director Phil Harris said the four-bedroom home sold above expectations.

“Throughout the campaign, the feedback was that $1.65million was conservative and that [the home] was going sell for around $1.8million to $2million if there was competition,” said Harris.

“But the location was superb and there were close to a dozen bidders registered.

“In the end, it came down to two people that competed aggressively for it.”

The home was one of the best-recorded auctions held across Adelaide over the weekend, where the final clearance rate was 77.7 per cent of 130 total auctions according to CoreLogic.

Other top performers include 2 Clyde Avenue, Lockleys which saw a “huge turnout” gather at an Ous Property auction.

The five-bedroom home with a pool sold for $1.55millon and saw seven registered bidders battle it out.

Ous Property Principal Laz Ouslinis said the bidding commenced at $1million with the property selling above the asking price.

“The auction was unique in that we had $50,000 rises from the million-dollar mark and, it went really fast and had really aggressive bidding,” said Ouslinis.

“It went all the way to $1.55million, which was above the reserve price.”

Ouslins said the auction result significantly outdoes that of another pool-bearing home sold on the same street in December last year.

“The most comparable property sold is 21 Clyde Avenue which sold for $1.43million and is an 800 square metre block whereas [2 Clyde Avenue] is a 500 square metre block.”

“That shows really good confidence in the marketplace at the moment.”

The warmer months saw Adelaide make gains in the property market, as the median dwelling value rose by more than 10 per cent yet in April alone.

CEO of the Real Estate Institute of South Australia (REISA) Barry Money said though the cooler months often mark a quiet period, low interest rates and fear of missing out will continue to drive demand.

“Stock has fundamentally been depleted… and that will have the impact on the actual numbers of houses that are sold,” said Money.

“Winter is usually the slower of the seasons, but I think subject to stock, there will continue to be a mini-boom.

“This winter will probably be better than last winter in terms of sales and sales prices.”

Though the continued market boom is good news for sellers, Money said buyers can expect to have some difficulty securing a property.

“[When looking at purchasing] buyers have to make a balanced decision based on pricing versus interest rates and government stimuli,” said Money.

“We don’t know when interest rates will change but, they’re still not slated to change until 2023-2024.

“But I still think it is a great time to do great [market] research to make a decision in terms of purchase.”