A Greensborough house has sold almost $70,000 above reserve, as signs emerge that banks are loosening their purse strings.
It took seven bidders and more than 50 bids for the three-bedroom house at 107 Delta Rd to reach its $716,200 sale price — which was far above the $560,000 vendor bid that opened the auction.
The house had a $650,000 reserve, but Jellis Craig auctioneer Scott Nugent only got the chance to call the home on the market at $690,000, when competitive bidding slowed for the first time.
Low stock in the area was forcing competition, but first-home buyers also seemed to have bigger budgets than they did a month ago, Mr Nugent said.
“It’s as if the brokers two weeks ago all hit the phones hard and told (buyers) they have that extra bit to spend,” he said.
First-home buyers Brett Allen and Ahrum Joo confirmed their bank had recently increased their lending limit, helping them make their start after two years searching on and off.
“So we got into the spirit of the auction, we didn’t want to lose,” Mr Allen said.
After missing out at another auction a week prior, and with their first child on their way, they broke their budget pursuing the home.
“We did go over our limit,” Ms Joo said.
An underbidder also appeared to push themselves past their planned top offer, making several phone calls before placing bids as low as $100.
Vendor Fiona Guney and her husband Jean fell in love with and bought the home after an auction in 2013.
They’ll now upsize ahead of welcoming their second child.
“We’ve gotten plenty out of it,” Ms Guney said.
“We bought it as our first home, got married, got a dog and I fell pregnant all in the one year.
“But we’re at a stage now where we do need more room.”
The successful auction meant they could take some time to find a new home that suited their daughter Fleur, 5, and kelpie Cookie, 8.
Mr Nugent said the auction result was good news for other prospective homesellers in the area, with the house proving more popular than similar properties sold recently.
“The last couple of similar homes have sold for $620,000-$645,000 in the area,” Mr Nugent said.
His colleague Dean Wolfe echoed the comments about higher first-home buyer budgets, and seemingly looser lending.