“We’re still seeing some really good prices for good family homes in the area. For this home, a little bit of work needs to be done inside, but it’s a fabulous location, and they could add a lot of value to it,” Ryan said.

“People are still willing to pay a good price for good homes in the area.”

It was one of 874 auctions scheduled in Melbourne on Saturday.

In Pascoe Vale South, a first home buyer paid $705,000 for a two-bedroom townhouse, beating three others.

Ray White auctioneer Jamil Allouche said competition was fierce for 7/277 Ohea Street. He placed a vendor bid of $610,000 before two bidders began trading offers, quickly rising above the $670,000 reserve.

“I had two bidders go pretty aggressively at each other until we reached $680,000,” Allouche said.

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Two other parties then joined the race and bidding slowed to $5000 increments. The home, which was listed with a price guide of $610,000 to $670,000, sold under the hammer to a buyer local to the Pascoe Vale area.

Allouche said it was mainly first home buyers who had shown interest in the stylish home, which offered an attractive price point for buyers looking to break into the market.