A weatherboard and brick Sydney home has sold for more than $4million, just days after the Reserve Bank delivered its first interest rate cut in more than four years.
The property in Finalyson Street, Lane Cove went under the hammer on Saturday and sold for $4.16million – with the median property price for the suburb at $3.5million.
The modest 695sqm single-storey home features four bedrooms, two bathrooms and a single car garage, and was bought by a family from the UK who recently relocated to Australia.
‘We’ve been back for a few weeks now with auctions, but this is probably the most competitive auction we’ve had this year,’ selling agent Julia Sikora from McGrath Lane Cove told Domain.
Just three bidders duked it out for the home, which had been held by the same family since 1976, and pushed the price $665,000 above the reserve, in a sign confidence is returning for borrowers in the property market.
RBA boss Michele Bullock was questioned about the board’s decision to cut rates on Friday.
The colourful parliamentary hearing also saw her asked the central bank’s opinion on a dubious cryptocurrency based on an internet meme and backed by a tech billionaire.
This modest single-storey house in Sydney’s Lane Cove just sold for $4.1million
The house features four bedrooms, two bathrooms, and a single car garage
With inflation slowing more than expected, Ms Bullock said the board was convinced it was appropriate to slightly ease monetary policy.
But subsequent rate cuts are not guaranteed as Australia takes lessons from other nations.
‘One learning from overseas is that disinflation can be bumpy, it doesn’t go in a straight line back to target,’ Ms Bullock told politicians on Friday.
‘The board remains cautious about the prospects for further policy easing.’
In New Zealand and Canada, for example, interest rates increased much more and have come down harder, but their unemployment rates are relatively elevated.
Australia’s labour market has largely held up by comparison, but this has caused different uncertainties for the RBA to navigate.
‘We can be satisfied with the progress made so far, though the job is definitely not done,’ Ms Bullock said.
The kitchen to the property which sold for $665,000 above its reserve price
The selling agent said it appeared confidence was returning to the housing market for borrowers after an interest rate cut on Tuesday
As a key contributor to the cost of living, getting younger people into housing is expected to be one of the most pressing matters at the federal election.
‘It’s very much symbolic of generational wealth inequality and indicative of a feeling of economic disparity and disempowerment,’ Redbridge director Simon Welsh said.
The government has committed to increase Commonwealth Rent Assistance and aims to construct 1.2million new homes by 2029.
The Master Builders Association of Australia has said we are lagging behind the target already.
