Going, going, gone: For $500,000 more than owners asked

FOR more than $3 million you would expect all the latest gadgets - or at least a fresh lick of paint.

mosman

FOR more than $3 million you would expect all the latest gadgets - or at least a fresh lick of paint.

But this old house, which sold for more than $500,000 above reserve, still needs some love - and money.

The Mosman home, which sits behind one of Sydney's busiest roads, sold for a staggering $3.02 million at auction this week to a local family.

They are undecided about their plans for the property but are considering knocking it down and rebuilding.

Built in the early 1900s, it sits two streets back from Military Rd.

It is 1.2km from Balmoral Beach and has stunning views. Selling agents Bernard Ryan and Tim Abbott of LJ Hooker Mosman said the $3,020,000 sale price for the 606sq m property indicated homes in sought-after areas were still performing well.

"Even though we knew what it was worth we were still overwhelmed by how well the market received it. It was wonderful," Mr Ryan said.

Real Estate Institute of Australia president Pamela Bennett said the sale may signal a turnaround at the top end of the market.

"While I don't think it's everything, location is certainly enormously important when it comes to buying a property," she said.

However real estate prices across most of the nation remained flat in August, according to the latest RP Data-Rismark Hedonic Index.

The Sydney and Melbourne markets lifted 0.1 per cent, while Adelaide was the best performer, climbing 1.4 per cent.

Elsewhere prices slipped, with the Brisbane and Gold Coast region recording a value fall of 0.3 per cent and Perth suffering a larger decline in values of 1.2 per cent.

The latest figures follow a 0.5 per cent increase in average home values nationally in July and a 1 per cent increase in June.

The spring selling season, which officially starts today, is expected to be a litmus test for real state markets across the country after years of soft sales.

But the latest data, which is officially released on Monday, is expected to show that for the year to date, home values across the five largest capital cities have fallen by 0.8 per cent - a much slower pace than declines throughout 2011.

Leading agents believe it is a sign the market in most cities has now bottomed, with LJ Hooker deputy chairman Janusz Hooker saying his agents were reporting faster sales times and higher level of buyer inquiries.