A COMPACT cottage in Mayfield snapped up by a first-home buyer was the most affordable house sold at auction last week.
The buyer secured the two-bedroom home at 3 Regent Street for $590,000 after a year-long search.
Century 21 Newcastle listing agent Shane Smith said the house drew strong interest throughout the campaign, with the majority coming from first-home buyers eager to get a foot on the property ladder for under $600,000.
"I had a tonne of enquiry on it," Mr Smith said.
"I had 30 groups through the property so it was well received and almost all of the interest came from first-home buyers.
"There was the odd investor and the downsizer that did inspect the home but really it was that first-home buyer market."
The agent said the property's auction guide of $550,000 and its position two blocks from the main street of Mayfield appealed to buyers.
The home's low price point was matched by its small footprint, with the block spanning just 126.5 square metres.
The slimline cottage had two bedrooms, one bathroom and an open-plan kitchen, living and dining area.
"It's a 120 square metre block but the house took up most of the land so it was a reasonably sized home inside," he said.
"Another property sold in Mayfield recently for a similar number but these are smaller blocks and they will attract the lower prices."
The median house value in Mayfield is $808,000, according to CoreLogic.
Another first-home buyer snapped up a property at auction on one of Hamilton's most coveted streets over the weekend.
The one-bedroom home on 260 square metres at 91 Everton Street listed with Robinson Property's Amanda Langlands sold under the hammer for $781,000.
The auction drew five registered bidders, with interest coming from first-home buyers, downsizers and singles.
"It was surprising for a one bedroom property like that to have such strong activity," Ms Langlands said.
"Every weekend we had 20 groups coming through and even after the latest interest rate rises we still had 17 groups through."
The agent said the location of the home and the fact it had a large backyard appealed to buyers.
"It was quite spacious inside for a one bedroom but it also had the backyard so it gave them the opportunity to have a pet or put in a garden," she said.
"It was very popular with singles and downsizers."
Meanwhile, Colliers Residential Newcastle listing agent Anthony Merlo reported strong interest from first-home buyers in the market for a three-bedroom, two-bathroom home in Glendale.
The 750 square metre property at 9 Manuel Street is listed with a guide of $585,000.
Mr Merlo said the low price point had drawn a high level of enquiry since the home hit the market on Thursday, with around 80 per cent coming from first-home buyers.
He held two open house inspections at the property over the weekend and is in negotiations with a number of buyers.
"It has already had huge interest because you just can't find anything that cheap," Mr Merlo said.
"It is tough for first-home buyers out there, there's no doubt about that.
"We had interest from investors but mostly from first-home buyers and I have already issued four contracts."
Mr Merlo said the property was set up with two separate self-contained areas but could be converted into a four-bedroom home.
Alternatively, a buyer could utilise the current configuration and rent out part of the home to earn an income stream.
"It was originally a two bedroom home with a lounge and eat-in kitchen but it was extended and has an extra living area with a second eat-in kitchen, a third bedroom and an ensuite," he said.
"A first home buyer could potentially set it up as a one bedroom apartment out the back and rent out it for extra income."
The median house value in Glendale is $676,000, according to CoreLogic.
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