A property investor has accepted $50,000 less than the listed reserve price for a six-bedroom red brick home in Melbourne's inner west, after the Seddon property passed in at Saturday auction and was sold through post-auction negotiations for $1.25 million.

The home at 14 Hobbs Street featured period characteristics including decorative hallway fretwork, stained-glass at the entrance and multiple fireplaces. It sits on a 300-square-metre block and had previously operated as a rooming house. The buyers, a locally based couple purchasing their second home, may choose to renovate the property back to its original configuration.

How the Seddon Sale Unfolded

The reserve price on the Hobbs Street home was set at $1.3 million. At auction, a vendor bid of $1,225,000 was placed, but no competing offers followed and the property passed in. Two interested parties then entered negotiations with the vendor, ultimately resulting in a deal at $1.25 million.

Selling agent Tate Moore described the suburb as a popular pocket of Melbourne, noting the buyers had local ties. He also pointed to a broader pattern emerging in the market, with a growing number of homes either selling after auction or before it even begins.

"They really just want some third-party endorsement that people will put their hand up," Moore said, explaining that some buyers were seeking social proof of demand before committing.

Moore said the fifth cash rate increase for the year, which lifted the Reserve Bank's cash rate to 4.85 per cent, had not yet visibly dampened activity among second home buyers, partly because they tend to be buying and selling within the same market conditions. He acknowledged the impact could grow over time. For context on how rising rates have been reshaping buyer sentiment, see our earlier coverage of the Reserve Bank's cash rate decisions and cooling inflation signals.

Records show the Seddon property last changed hands in 2010 for $736,000. The suburb's median house price over the 12 months to September sat at $1.06 million.

Melbourne's Weekend Clearance Rate Inches Higher

The Seddon result was among 629 properties scheduled for Melbourne auction over the week. By Saturday evening, a preliminary clearance rate of 59 per cent had been recorded from 416 reported results. A further 74 auctions were withdrawn, with those properties counted as unsold in the final calculation.

The modest improvement on the previous week's early read of 56 per cent came despite the latest rate rise, suggesting many active buyers had already priced the increase into their planning. Those auction clearance rates remain at subdued levels overall, reflecting ongoing caution across the market.

Other Results: Hampton East Townhouse Draws Six Bidders

In Hampton East, a single-level three-bedroom townhouse at 2/300 South Road attracted six registered bidders and sold for $1,361,000 to a downsizer. Bidding opened at $1.1 million, surpassed the $1.2 million reserve, and continued with increments as small as $500 before the hammer fell.

Selling agent Angus Graham credited the strong outcome to the vendor setting realistic expectations, as well as the property's practical appeal: a three-bedroom-plus-study layout, single level, garage and outdoor entertaining area. He said the winning bidder attended the first inspection, while the underbidder had only seen the home the Thursday before the auction.

"Realistic sellers are getting rewarded," Graham said, adding that while the market remains challenging, all of his October auction listings had sold successfully.

First Home Buyers Score Mickleham Home Above Reserve

Further north, a three-bedroom house at 49 Ginger Crescent in Mickleham sold under the hammer for $590,000, comfortably above its updated reserve of $550,000. Four parties registered for the auction, with two actively bidding. Opening offers of $560,000 already exceeded the reserve, and the price climbed through a combination of $10,000 and $5,000 increments.

A young couple renting locally secured the home as first-time buyers, edging out an underbidder who had been hoping to downsize.