Melbourne’s auction clearance rate over the weekend remained steady at 80% on 585 auctions reported. 357 of those sold at auction, 110 before auction and there were an additional 278 private sales.
The State Government announced last week of stamp duty discounts which is welcoming news to many property buyers. There will be a 50% stamp duty discount on newly built homes valued upto $1m and 25% discount for established properties for upto $1m for the rest of the financial year. Whilst welcoming news this is likely to encourage more buyers into the market which could result in further pressure in prices.
There is such a buzz around Melbourne at the moment…cafe’s and restaurants are open, masks are off outside and there were large attendances at many auctions on the weekend (socially distanced of course). There is a feeling that we are back to some kind of normality and this was also the case at auctions on the weekend with active bidding and in some cases, properties selling well above reserve.
We attended many auctions in Melbourne and Geelong with all of them selling well above reserve. The type of bidders were varied from investors, first home buyers, upsizers and downsizers.
The auction of 5/86 Cromwell Road, South Yarra achieved 9 bidders mostly from first home buyers with the property selling for $111,000 over reserve. The property was quoted $600,000 to $640,000 prior to auction and was announced on the market at $620,000 at auction. The last two sales in the block sold for close to $700,000 but this property was unrenovated, (almost unliveable), so to achieve $731,000 was a very good result for the vendor.
41 Middle Cres, Brighton sold for $5,425,000 at auction which was over $1,000,000 above reserve. This huge result was only achieved through two buyers who both desperately wanted the property. There were three bidders in total but two of these bidders belonged to the one party. The bidding was so fast and in large increments that no one else got an opportunity to put their hand up and I have no doubt there were other buyers there to bid. It just goes to show that auctions can achieve huge results if emotion comes into play as both buyers had pushed way past their budgets to try and secure the home.
In Regional Victoria, 5 bidders fought to secure a renovated home at 5 Spring Street, Belmont. The property was quoted at $670,000 to $700,000 prior to auction and was announced on the market at $700,000. The bidding kept going until it sold for $750,000. Selling agents have been reporting that buyer enquiry has doubled or even tripled in some cases since the ‘ring of steel’ was lifted.
After so many dire forecasts this year about the Victorian property market, it is a nice change to see reports of confidence with many experts now predicting property prices to rise. With record low interest rates, increased confidence, unemployment rates falling, stamp duty concessions and the likely vaccine roll out next year, an increase in property prices next year could quite be on the cards.
The REIV auction clearance rate has improved once again achieving 85% on 400 auctions reported. 220 properties sold at auction, 118 before auction and 1 after auction. In addition there were 241 private sales. The clearance rate for houses was 88% and units 80%. These percentages whilst high, overall transaction numbers are still well down on the 1034 auctions reported on the same weekend, last year.
We have just over four weeks left before the holiday season commences and I am expecting a shorter break in the property market than previous years. Many people still have not booked holidays due to the uncertainty of borders opening and others are choosing to stay local so they can play catch up on lost work during lock down.
New buyer enquiry should continue to be strong throughout January as confidence improves which is not dissimilar to January 2020, as long as we don’t see any spike in Covid-19 cases. Hopefully the resilience the property market is demonstrating will encourage more vendors to put their properties on the market.
Off market listings are on the rise as selling agents list properties due to go on the market in the new year. Many of these vendors will be willing to sell now and the Elite Buyer Agents team are working extremely hard to find these off market properties for our clients. In addition to higher levels of off market properties, historically December can be a very good month to buy as vendors become even more motivated to sell their property before Christmas.
Have a great week.
Kim Easterbrook
The REIV auction clearance rate achieved a result in the 80’s again with 382 auctions reported. 231 sold at auction, 85 before auction and an additional 206 private sales. The clearance rate for houses was 84% and units 80%.
In the first 12 days of November, CoreLogic’s data shows that Melbourne property prices were bouncing back and outperforming all other major capital cities around the country. This data is supported by four weeks of strong auction clearance rates.
Over the past six months, I have been asked almost on a daily basis about distressed sales. The second lockdown financially hit some people very hard and no doubt some people will lose their businesses and potentially their homes. However, the government have helped support many businesses through JobKeeper and other grants, and the banks allowed mortgage holidays to try and help keep people afloat. On the flip side, there have been many people who haven’t lost their job, in fact, have been saving a lot more money than what they normally would have. This has allowed some buyers to have increased budgets due to larger deposits.
The banks have extended mortgage holidays for another four months, now ending March 2021. This has given homeowners plenty of time to sell their home if they anticipate they financially need to. Interestingly, 50% of all mortgages on holidays have now had their repayments resume, not needing to make use of the extended holiday.
Many selling agents are reporting they are rarely seeing a distressed sale and even when the odd one does come onto the market, the buyer demand is strong enough to achieve a sale at market value.
There have been many reports this year that Melbourne property prices will drop and thus far, the market has remained very resilient. If everything remains as it is now, we will enter into a very active late Spring and busy start to next year.
Have a great week.
Kim Easterbrook
The auction clearance rate over the weekend was 82% from 374 auctions. 219 sold at auction, 85 before auction and 2 after auction. In addition, there were 212 private sales. This is the third week in a row that auction clearance rates have been in the 80%’s. In comparison, there were 919 auctions on the same weekend last year achieving a clearance rate of 72%.
Premier Daniel Andrews yesterday announced the next step of easing restrictions in metropolitan Melbourne and they included some changes for real estate. 10 people will now be allowed to inspect a property at the same time This is not an open for inspection (rather a private inspection with multiple buyers) and the time cannot be advertised. This is welcoming news for both selling agents and property managers who have been working extremely hard taking buyers through individually. From the 23rd of November, auctions will be allowed to have 50 people outside or 20 people inside as long as social-distancing requirements are met.
The ring of steel is now lifted meaning buyers can inspect properties anywhere in the state. I am expecting that the amount of properties for sale in Regional Victoria will increase dramatically as many vendors were holding off until Melbourne buyers could physically inspect them. The amount of properties on the market in Melbourne should also increase as confidence builds whilst restrictions ease.
Over the past week we have experienced a considerable increase in buyer enquiry looking to purchase. This has been from first home buyers, investors, upsizers and downsizers, all segments of the market. The resistance we were receiving a few weeks ago from buyers indicating they are going to wait until next year seems to be fading. This is partly due to the record low interest rates but mostly due to the increased confidence with back to back days of zero new Covid-19 cases in the state.
Off market transactions are still very active, we purchased two properties off market last week in Newport and Elsternwick. There is still a short window for vendors to put their properties on the market before Christmas and I believe there will be a rush over the next few weeks. The real estate industry will likely shut down for a couple of weeks over the Chritmas period but it is unlikely that we will be closed for the most of January like the industry historically has been.
Have a great week.
Kim Easterbrook
The Melbourne auction clearance rate was in the 80%’s for the second week in a row. Of the 420 auctions reported to the REIV (previous weekend was 375 auctions), 271 sold at auction and 84 sold before auction. There were an additional 295 private sales. The overall transaction numbers are expectantly down from last year but these numbers are a positive sign that the property market is holding up well. Prices appear to be remaining stable and the Melbourne market is not being flooded with distressed sales.
From next Monday, stock levels in Regional Victoria are predicted to dramatically increase as the ‘ring of steel’ between Metro Melbourne and Regional Victoria is due to be lifted. This will allow buyers from Melbourne to now inspect properties in person and the property market in Regional Victoria is tipped to be very active for the remainder of the year. With the increase in demand, it is predicted that some suburbs of Geelong may enter the $1m median price club within the next six to twelve months.
The Reserve Bank is meeting tomorrow and it is likely that the official cash rate will decrease from 0.25% to 0.1%. It is hoped that the banks will pass this on in full to help partly kick start the economy with increased consumer spending.
With low Covid-19 case numbers, a potential interest rate cut, reopening of Victoria and now the news of a vaccine rollout next year, there are a lot of reasons why buyers may not hold off too much longer to buy property.
Victoria and in particular Melbourne have done it tough over the past few months. The hard work is now paying off and it is great to see some positivity out in the community.
Have a wonderful week.
Kim Easterbrook
Auction numbers are on the rise as stock levels increase across Victoria. Melbourne recorded a strong auction clearance rate over the weekend of 83% on 290 auctions which is the most amount of auctions held over a weekend in months. In addition, there were 112 private sales.
The property market is continuing to remain resilient and vendors are mostly being realistic with their price expectations. Agents are also encouraging vendors to sell if a reasonable offer has been made on their property. The number of transactions is significantly down on last year but that is to be expected based on less buyers and less sellers in the market.
After speaking to many prospective buyers, there seems to be a common sentiment of many waiting until the new year to purchase. This is very similar to the sentiment we experienced prior to the 2019 Federal Election which resulted in many buyers sitting on their hands. In this situation, once Liberal were voted in, many buyers entered the property market at the same time which resulted in property prices rising and many buyers not taking advantage of the eased buying conditions. We could see the same happen next year.
Next month, the RBA is tipped to decrease interest rates from 0.25% to 0.1% and if the banks pass this cut onto their customers, this will make borrowing money even cheaper than ever before.
Whilst we are not currently experiencing any property price drops as such, vendors who have their properties on their market are generally motivated to sell, reserve prices are mostly in line with what the property is worth and there is less buyer competition on most properties. These conditions are likely to continue for the remainder of this year but as restrictions begin to ease and confidence grows, more buyers might decide it is time to buy.
Have a great week everyone.
Kim Easterbrook
It has been a great week for Victorians! Not only did Melbourne Storm, Geelong and Richmond book themselves a spot in this years Grand Final, cases of Covid-19 have dropped dramatically and we are now on the brink of defeating the second wave. Last night Daniel Andrews announced some easing of restrictions and more to come over the next two weeks. Interestingly, we had a run on enquiry from new buyers after the announcements yesterday. There is certainly a lot more positivity in the air.
Last week in metro Melbourne, there were 117 online auctions reported to the REIV with a clearance rate of 76%, in addition there were 152 private sales. We are still well down on the usual spring numbers but I am expecting this to increase considerably over the next few weeks. As part of Daniel Andrews announcements, auctions are now allowed on site with 10 registered people only in addition to the agency staff. We will see some online auctions now convert to onsite auctions.
In Regional Victoria, the property market is very active with days on market declining. Some of these properties are selling to Melbourne buyers purchasing sight unseen. This includes properties in the town centres of Geelong, Ballarat and Bendigo and acreage properties on the outskirts of these towns. Over the lockdown period, there has been a real shift in the mindset of some Melburnians that has resulted in wanting a sea or tree change or wanting a second residence in the country. This has caused an increase in demand for these areas.
Whilst this could be just a short term phase that could decline over time, there is certainly an increase in investors looking to purchase in these areas which will push higher demand long term. Whilst residents of metropolitan Melbourne cannot enter Regional Victoria for the purpose of a property inspection, there is still a window of opportunity here as many buyers will not buy sight unseen.
Have a great week everyone.
Kim Easterbrook
We are one week in to Metropolitan Melbourne now being allowed to conduct private inspections and there is no doubt the property market is active. There was a lot of confusion at the start of the week as to what was and wasn’t allowed but there now has been some clarity around that. In addition to private inspections, photographers, videographers and stylists are allowed access to the property which means newly listed properties will come onto the market, and building inspectors are allowed on site.
So you would think that it is now business as usual however I don’t believe the amount of private inspections that the selling agents are currently conducting is sustainable. I spoke to countless number of selling agents who had been standing at the one property all day, everyday, showing ‘qualified’ buyers through. Some agents having to conduct over 100 inspections for the week with their executive assistants helping to open properties and working Sunday to get all the prospective buyers through.
This does show though that there is buyer demand with many agents reporting the buyers coming through their properties are new to the market. Stock levels still remain low but we believe that will increase over the coming weeks as new properties come onto the market.
We had an extremely busy week at Elite with back to back private inspections for our clients and many zoom meetings with prospective purchasers. We also secured a property at 9pm Saturday night after only viewing it at 4pm that day. Some properties are selling quickly and we are expecting a very busy spring season.
In Regional Victoria, Vicky Whittaker (Elite Buyer Agents – Regional) purchased a terrific off market property in Geelong for our client. Our client’s brief was to purchase a development site with potential for three townhouses for around $700,000 which we were able to achieve. There has been an increase in off market properties being listed and there have also been many reports of Melbourne buyers purchasing properties sight unseen.
Stay dry and have a great week.
Kim Easterbrook
We are one week in to Metropolitan Melbourne now being allowed to conduct private inspections and there is no doubt the property market is active. There was a lot of confusion at the start of the week as to what was and wasn’t allowed but there now has been some clarity around that. In addition to private inspections, photographers, videographers and stylists are allowed access to the property which means newly listed properties will come onto the market, and building inspectors are allowed on site.
So you would think that it is now business as usual however I don’t believe the amount of private inspections that the selling agents are currently conducting is sustainable. I spoke to countless number of selling agents who had been standing at the one property all day, everyday, showing ‘qualified’ buyers through. Some agents having to conduct over 100 inspections for the week with their executive assistants helping to open properties and working Sunday to get all the prospective buyers through.
This does show though that there is buyer demand with many agents reporting the buyers coming through their properties are new to the market. Stock levels still remain low but we believe that will increase over the coming weeks as new properties come onto the market.
We had an extremely busy week at Elite with back to back private inspections for our clients and many zoom meetings with prospective purchasers. We also secured a property at 9pm Saturday night after only viewing it at 4pm that day. Some properties are selling quickly and we are expecting a very busy spring season.
In Regional Victoria, Vicky Whittaker (Elite Buyer Agents – Regional) purchased a terrific off market property in Geelong for our client. Our client’s brief was to purchase a development site with potential for three townhouses for around $700,000 which we were able to achieve. There has been an increase in off market properties being listed and there have also been many reports of Melbourne buyers purchasing properties sight unseen.
Stay dry and have a great week.
Kim Easterbrook
We received terrific news in Melbourne yesterday with some COVID-19 restrictions easing which included private inspections for real estate now a permitted activity. This is welcoming news for vendors, buyers, landlords and tenants. It is also our understanding that any necessary marketing services are also allowed (being photographers, videographers and stylists) which means we should see many new listings come onto the market.
There are strict safety requirements that must be adhered to with private inspections limited to one agent and one prospective purchaser or tenant who may be accompanied by one other person from an existing household or their partner.
The agent must confirm with the occupier of the property prior to the inspection to ensure they are not symptomatic, self-isolating or under quarantine prior to attending the property. The person who is occupying house must leave the property for the inspection for one of the four reasons under the stay at home directions during the inspection.
The agent is required to have all the internal and external doors open during the inspection so the property is well ventilated. Face coverings must be worn at all times and physical distancing is to be maintained.
Any surfaces touched during the inspection are to be disinfected by the agent at the end of the inspection however it is required that any touching of surfaces is to be kept to an absolute minimum. Hand sanitiser must be provided by the agent and the prospective tenant or purchaser must use it prior to entering the property.
We will see many online auctions for the remainder of this year and we may have some onsite auctions with limited numbers before the year is out.
We could also see some changes in lending very soon as the government last week announced they are reviewing lending regulations with the aim to simplify the lending process. The current process due to the Royal Commission and COVID-19 has become more intrusive and difficult. The bottom line is the government is wanting to increase credit which translates into more spending. These changes will increase buyer demand and combined with low interest rates makes it a very attractive time to buy.
We are very much looking forward to a very busy week. Hope you have a great week too.
Kim Easterbrook
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