The REIV reported 223 auctions over the weekend producing a clearance rate of 99%. Of the 223 auctions, 100 sold at auction, 120 sold before auction and 1 after auction. 441 were withdrawn and 634 postponed. In addition, there were 144 private sales.
With no end in sight to lockdown ending, it is looking more likely that the busy spring period for real estate will be pushed out to summer with some selling agents suggesting that auctions could run as late as the 23rd and 24th of December. The length of auction campaigns could be shortened from four weeks to three weeks and perhaps even two weeks if enough interest can be generated. We should see an increase in stock at the cessation of lockdown due to some vendors holding off launching their campaigns but also selling agents are appraising and listing properties via virtual inspection.
Some vendors are pushing on with the sale of their property by offering virtual tours via zoom to prospective buyers. I attended one of these over the weekend and it worked very well. This can only occur at properties where either a tenant or vendor are currently living there as no one is able to attend a vacant property to film. While the vendor walks their camera through the property room by room, the selling agent narrates in the background. Whilst this is obviously not as good as inspecting in person, it is the best that can be offered in the current environment. If a buyer chose to purchase this way, a building inspection (which are allowed) should be conducted to ensure any issues with the property are found.
3 Collis Street, Brighton East sold via virtual auction on Saturday to a buyer who had not physically inspected the property. The property only had a short period of time for physical inspections prior to lockdown so inspections were converted to online with the vendors walking through prospective purchasers in the lead up to auction. The auction attracted five bidders and smashed the reserve of $3,950,000 selling for $4,362,000 to a buyer who had not physically seen the property.
Have a great week.
Kim Easterbrook
Hi,
Auction numbers were down again over the weekend with 281 virtual auctions conducted. Of these auctions 138 sold at auction, 136 sold before auction and 7 passed-in bringing the clearance rate to 98%. Only auctions that selling agents were confident had buyers continued through to auction so the clearance rate is not reflection of the state of the market as 527 auctions have been postponed.
With Covid-19 case numbers rising and regional Victoria now thrown into lockdown, the real estate industry is effectively shut down with only virtual tours of properties allowed. Rental properties seem to be leasing well via virtual tours but very few properties will sell and new listings being launched are extremely low.
The REIV are currently lobbying the government to have 1 on 1 private inspections permitted (which was allowed during Lockdown 1.0 via a permit system) but it seems to be falling on deaf ears. I could only imagine the stress that some vendors must be feeling if they are selling due to financial hardship or if they must sell as they have purchased a property.
The online auction of 9 Kawareen Street, Balwyn North lasted for 90 minutes while two parties would not give up on securing the five bedroom, three bathroom home. For 30 minutes of the auction the bidding increments were at just $500 with both parties at multiple stages during the auction giving up and congratulating the other party. The property sold for $2,421,500 which was over the $2,200,000 reserve.
A home in Parkdale went under the hammer on Saturday after just having two opens prior to lockdown. 9A Evans Street, Parkdale is a four bedroom, two bathroom that has a great floor plan which allows it be easily renovated. 24 buyers registered to participate in the auction with only three bidders taking part. The auction commenced on a vendor’s bid of $1,000,000 with the property being announced on the market at $1,200,000. The property sold for $1,240,000 to first home buyers.
Have a great week everybody!
Kim Easterbrook
Hi,
Auction numbers were down on the weekend with 482 auctions postponed. 387 auctions were still reported to the REIV with 214 of these selling at auction, 154 before auction and there were an additional 149 private sales. Most of the auctions that are scheduled for this weekend coming will likely be pushed out until after lockdown ceases unless the agent is confident that they have a number of strong buyers. And even in that case, most of these negotiations have been brought forward.
For our Melbourne offices, it will be a quiet period of buying until we can inspect properties again, however for our Geelong/Ballarat office, it has been busy and business as usual. Our rentals team have been surprisingly busy leasing a number of properties last week via virtual tours which shows that the lockdown has not deterred tenants from planning their next move.
Online auctions continued to deliver some strong results with an unrenovated house at 25 Hume Street, Armadale selling well above the price guide. Five bidders tried to secure the property that was quoted prior to auction for $3,500,000 to $3,850,000 and selling for $4,200,000.
The Geelong market continues to go from strength to strength with a house in Hamlyn Heights selling for $138,000 over the reserve price. 12 Langibanool Ave, Hamlyn Heights was quoted for $525,000 to $550,000 prior to auction with ten buyers registered to bid but only five of them participated in the auction. The fourth bid was $550,000 where the property was announced on the market but strong bidding pushed the sale price to $688,000.
Have a great week.
Kim Easterbrook
Hi,
What a difference a day can make, one day the State Government was announcing no Covid-19 cases then the next day we are in lockdown. There were over 1,000 auctions scheduled for the weekend however 701 have been reported to the REIV as being postponed. Of the 397 auctions that were to be held online, 267 sold at auction, 92 sold before auction and 38 passed in resulting in a clearance rate of 90%. In addition, there were 149 private sales.
It seems that 2021 is the year of in and out of lockdown. The real estate industry has adapted very well however there is still only a certain amount that can be done under the tight restrictions. Auctions can easily be converted to online however onsite inspections of properties are not allowed. This basically puts the industry into a holding pattern until restrictions ease.
Lockdown aside, there were some very strong auction results over the weekend with some properties selling hundreds of thousands of dollars above the vendor’s reserve. 4 Hamilton St, Seddon was quoted $1,200,000 to $1,300,000 prior to auction and is a three bedroom, two bathroom, single fronted period home on 322 sqm. The property whilst updated, did not have a great floor plan and could have done with some additional works to lift it to its full potential. The property sold for $1,567,500 which was $276,500 above the vendor’s reserve.
8 Grange Road, Sandringham was also another popular property. The property was quoted $1,690,000 to $1,790,000 prior to auction and is an entry level, family home for the area with four bedrooms, two bathrooms in very liveable condition on 356 sqm of land. The property had reached the vendor’s reserve after a strong opening bid of $1,900,000 which knocked out some participants immediately. There were an additional two bidders above this level with the property selling for $2,155,000.
Have a great week.
Kim Easterbrook
Hi,
Lockdown 5.0 thankfully ended last week which allowed onsite auctions to take place over the weekend. 433 auctions were reported to the REIV weekend resulting in a clearance rate of 88%. 278 properties sold at auction, 50 passed in, 105 sold before auction but 595 were postponed (to take place over the next few weeks). In addition, there were 186 private sales. Interestingly, this time last year there were 217 auctions and a clearance rate of 78%.
Lockdown 5.0 does not appear to have impacted the property market with buyers very willing to participate at auctions over the weekend. If anything, it may have had a negative effect on the amount of properties coming onto the market. Some vendors are concerned about the disruptions of lockdowns and are holding off selling whilst in actual fact, the lack of stock couldn’t make it a better time to put their properties on the market.
As a company, we have seen a small impact of the Covid situation in Sydney. The first six months of the year we had received considerable buyer enquiry from both owner occupiers moving to Victoria due to the housing affordability factor and Sydneysiders wanting to invest in the Victorian property market. Over the past few weeks this enquiry has dropped to virtually zero. Whilst we believe this will only be short term, there is no doubt and understandably, residents from Sydney may have put their plans into a holding pattern.
75-77 Haydens Road, Beaumaris went to auction over the weekend which was quoted $2,500,000 – $2,650,000 prior to auction. The three bedroom, two bathroom home in need of renovation is set on a large block of 1,226 sqm sold for a huge $580,000 over reserve for $3,230,000.
A fire damaged home 44 Collins Street, Thornbury sold for a big price considering that it would be unlikely that a bank would lend money against the property in its current state as it could be deemed as uninhabitable. The tenants who resided in the property unfortunately fell asleep whilst a candle was burning and the front section caught fire. Five bidders participated in the auction with the property selling under the hammer for $1,517,500 which is significantly higher than the $1,150,000 to $1,250,000 quoted price range.
Have a great week.
Kim Easterbrook
Hi,
The second week of lockdown didn’t deter hundreds of vendors moving their onsite auctions to online with 443 auctions reported to the REIV. This was down on the previous week but up on the same time last year which only produced 293 auctions. Another high clearance rate of 94% was achieved however 527 auctions were postponed so it is not a true reflection of what the market would have produced had lockdown not occurred. Of the 443 auctions, 418 sold (with 202 of these selling before auction and 216 sold at auction), 155 were withdrawn and there were an additional 190 private sales.
With promising signs that lockdown will cease tomorrow night, the state government has given a stern warning that restrictions will be in place for quite some time to come. Whilst we may be able to inspect properties again, it is likely these will either be private inspections with capped numbers and auctions will again be either outdoor only with limited numbers or still online. Hopefully we will hear an announcement today.
The auction of 21 Aberdeen Grove, Northcote was scheduled to go to auction last Saturday but was brought forward due to an ‘acceptable’ offer being received. The property had been quoted $1,400,000 to $1,500,000 prior to auction with an offer well above this range triggering the property to sell before auction. Three additional buyers were wanting to challenge the offer so a zoom auction was then scheduled. The auction ended up with four bidders in total and sold well above its reserve price for $1,811,000.
Have a great week.
Kim Easterbrook
Hi,
The sudden announcement of a fifth lockdown in Victoria threw the weekend’s Super Saturday auction calendar into chaos yet once again. Some auctions were moved from Saturday to Thursday night (pre-lockdown) in order to have the auction on site, some moved to online, some sold before auction and some have been postponed. 525 auctions were still reported to the REIV which just shows how well we have been able to adapt in the event of a snap lockdown.
Of the 525 auctions reported, 315 sold at auction, 43 passed in, 166 sold before auction and 1 sold after resulting in a clearance rate of 92%. There were an additional 175 private sales. Due to 293 auctions being postponed, the clearance rate doesn’t give an accurate indication of what would have been had all properties gone to auction but it does still demonstrate strong buyer activity in the market.
Super Saturday weekened online auctions produced some strong results over the weekend and the auction of 23 Allnutt Parade, Cheltenham was one of them. The renovated, five bedroom, three bathroom home was quoted $1,240,000 to $1,320,000 prior to auction with six bidders participating driving the price to $1,564,000.
The REIV released its June quarterly report showing the median house price in Melbourne held steady at $1,010,000 and in regional Victoria is increased to $559,500. The median house price across regional Victoria rose 10.5 per cent over the quarter resulting in a 20 per cent annual growth in house prices.
Other findings of the report were:
– there was an increase from 155 to 177 metropolitan suburbs having median house prices over $1,000,000;
– auction clearance rates have been above 80 per cent for all of 2021 with June having the most amount of auctions reported;
– The median house prices in Greater Geelong increased 7.9 per cent in the June quarter to $695,000;
Have a great week.
Kim Easterbrook
Hi,
Auction numbers were high on the weekend with 958 auctions across Melbourne. 606 sold at auction, 150 sold before auction, 202 passed in and there were an additional 158 private sales.
Over the past two weeks, we have seen real a disconnect in some agents price guides and reserve prices. A few of years ago this would be have an intentional act by some selling agents quoting the property lower to generate buyer interest. However, I don’t believe this is currently the case. It seems that some vendors are becoming overly excited about the sales results of other properties and setting high reserves on the day of auction. I even attended an auction where the vendor instructed the agent to just pass the property in, regardless of where the bidding landed. I have witnessed some agents frustrated by this and I believe that is why we have seen a slight dip in the clearance rate. Not due to lack of buyer interest, but due to some vendors being overambitious on their price expectations.
We attended some very competitive auctions on the weekend with the auction of 267 Clarke Street, Northcote being one of them. This unrenovated three bedroom, one bathroom California Bungalow on 529 sqm with rear laneway access. The property was quoted at $1,800,000 to $2,000,000 before auction and had generated serious interest with many buyers inspecting the property throughout the sales campaign. The auction commenced on a genuine bid of $1,800,000 from one party with another four bidders jumping in to try and secure the home. The property was announced on the market at $2,000,000 and sold for a huge $2,415,000. The bidders were all young, professional couples and families.
The auction of 942 Lygon Street, Carlton North which is an unrenovated but impressive Victorian terrace was also very well attended and was quoted before auction for $1,550,000 to $1,705,000. A strong opening bid of $1,650,000 started the auction off with another four bidders participating where the property was announced on the market at $1,700,000. The property sold for $2,156,000. A very big result for the vendor and whilst the property had an incredible facade, it did require a lot of work and was located on a busy, main road.
Have a great week.
Kim Easterbrook
Hi ,
Auctions were back on the weekend with the REIV reporting 543 auctions with a clearance rate of 83%. 314 sold at auction, 135 sold before auction and 719 postponed. There were an additional 133 private sales reported. This time last year there were 438 auctions with a clearance rate of 67%. The next two weekends are predicted to produce very high numbers of auctions as we play catch up from lockdown 4.0.
Winter and school holidays historically results in a slow down in the amount of properties for sale however the fourth lockdown may have made some vendors nervous about putting their property on the market for fear of further interruptions. Stock levels are low across Melbourne and Regional Victoria. New sales campaigns have been delayed as stylists and photographers were unable to get access to properties during the two week lockdown.
Vendor’s need not fear about putting their properties on the market. As an industry, we have adapted extremely well and properties have still been selling under strong competition. That being said, the panic and FOMO we experienced at the start of 2021 has eased.
An unrenovated house at 8 Lysterville Avenue, Malvern went under the hammer on the weekend. The property last sold in 1997 for $440,000. Four bidders participated in the auction after an opening bid of $2,500,000. The property was announced on the market at $2,650,000 and sold for $2,940,000.
Villa units are continuining to show their popularity and 2/4 Sandford Street, Highett was no exception. Investors, first-home buyers and downsizers were all in the mix to secure the property which was quoted at $600,000 to $660,000 prior to auction. Six bidders pushed the final sale price to $743,000.
Have a great week.
Kim Easterbrook
Hi,
A strong clearance rate of 96% was achieved over the weekend with 565 online auctions conducted. The final result for the previous weekend was 869 auctions and a clearance rate of 93%. In comparison, the same weekend last year produced only 159 auctions and a clearance rate of 67%. It must be noted that these results do not take into account the properties that have been converted from auction to private sale nor the auctions that have been postponed until after lockdown. However, it does tell us is that almost every property that went to auction….sold. There were an additional 183 private sales and lockdown has certainly not impacted on the amount of property transactions too dramatically.
Melburnians’ are hoping for some good news that lockdown will end this week and we are expecting an extremely busy few weeks in the real estate market playing catch up. My company, once again has experienced strong new buyer enquiry over the past week and a half with investors making up a large percentage of this enquiry.
With currently no population growth in Melbourne, and even some long term residents moving to the country/sea, there is still a strong demand for buyers to invest their dollars into the Melbourne property market. We have seen how property prices have soared in Sydney to unaffordable levels and a large majority believe that Melbourne property prices will follow suit (and already are). Property prices have remained very resilient throughout the biggest test it has ever experienced (a pandemic). Population growth is expected to resume once the international boarders open due to immigration. Investors have also had particular interest in buying in Geelong and Ballarat. This is due to these locations being a lot more affordable than Melbourne and both towns also offering a great life for families with very good private and public schools.
Unfortunately, first home buyers are the casualty here with strong demand further pushing them out of the property market. There is no surprise that the banks are seeing a decline in first home buyer lending with Melbourne’s median house price now tipping over $1,000,000. This will likely result in more first home buyers opting to rent or looking at properties at a more affordable price point, eg. apartments or properties further out from the CBD.
Have a great week.
Kim Easterbrook
