A Palmerston North property put up for auction with a $1 reserve has sold for $400,000.
Owner James Faber said there were scary moments when bidding seemed to stop at $350,000, but he was happy with the final result.
The property was valued at $480,000 by CoreLogic when Faber first listed it about six weeks ago, which he agreed with.
The $80,000 reduction, which equated to about a 17% fall, was fairly typical of how the market had moved since, Faber said.
Faber said a $1 reserve was a valid sales method, and while he would not rule out using it again he would not do it again in the current market.
The property went to a Wellington investor, who had already paid the deposit.
The auction would allow Faber to pay his mother back for a $300,000 loan she gave him for another subdivision project.
House prices didn’t fall as much during April as previous months, which was treated as a sign by some that the market may be approaching the bottom.
Buyer sentiment, however, suggests house price falls would continue. Real estate agents also appeared to share buyers’ sentiment, with a net 58% believing house prices would continue to fall.
Credit: stuff.co.nz
