A semi-detached house in Leichhardt sold at auction on Saturday to a first home buyer couple from Ryde for $1.6 million, some $100,000 below its reserve.

The couple, who plan to renovate, outbid a developer from Leichhardt for the two-bedroom, one-bathroom house at 43 Allen Street, which had a guide of $1.6 million and a reserve set at $1.7 million.

The auction started at $1.5 million and rose in $20,000 increments with two of three registered parties active. When bidding paused at $1.56 million, negotiations began and the reserve was adjusted to $1.6 million to meet the market – the vendor, living abroad, had no intention to return.

The property was rented for $675 a week in August 2020, records show. It was one of 980 scheduled auctions in Sydney on Saturday.

Montano Group’s James Montano reported buyer fatigue in the lead-up to Christmas, but deals were still getting done between motivated vendors and buyers.

Montano expected fresh buyer energy in January and February, but predicted buyer fatigue would continue until interest rates came down.

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“The longer it takes for these rates to come down, I think there’s going to be the same sentiment in the market in the first two quarters of 2025,” he said.

Co-agent John Cannizzaro agreed that there was buyer fatigue and said buyers were hesitant to secure properties, despite attending auctions.