A beautiful semi-detached Melbourne home stunned bystanders after it sold at the weekend for $2 million over the guide price.
The three-bedroom, two-bathroom, no-car-space home sold for $5.1 million - well above the $2.8 million to $3.1 million price guide.
Selling agent Marshall White’s Dean Gilbert told the Australian Financial Review the strong result was due to a lack of supply in the market and the homes sought-after location.
“I couldn’t keep up with it, super fast-paced, $100,000 bids. It was phenomenal,” Gilbert said.
“It’s totally life-changing for them.”
Around 40 onlookers were left stunned with the final sales price when the hammer fell.
The newly renovated home boasts 3.2-metre-high ceilings in the dining room, a gas log fire and oak floors.
Why did it sell for so much?
While property prices have fallen from their pandemic-era highs, they have started rising again thanks to a lack of supply.
Australia is experiencing higher migration and, therefore, more people are looking to a home to call their own. Combine more people looking to purchase a home with a lack of new housing and you have a recipe for higher prices.
National home values rose 1 per cent in the three months to April, according to recent data from CoreLogic. This marked the first quarterly lift in home values since May 2022.
On top of that, the amount of time it took to sell property was starting to pivot. Median days on market nationally was down from 37 days to 33 in the three months to April.
CoreLogic research director Tim Lawless said it was becoming increasingly clear the housing market had started turning around.
“Not only are we seeing housing values stabilising or rising across most areas of the country, a number of other indicators are confirming the positive shift,” he said.
“Auction clearance rates are holding slightly above the long-run average, sentiment has lifted and home sales are trending around the previous five-year average.”