Elite’s Weekly Market Wrap

29th April 2019

Good morning all,

I hope you all had a lovely break.  Even though the property market did quieten down over the school holidays, some transactions were still occurring.

Last weekend was a relatively quiet auction weekend with 378 auctions conducted of which 170 sold at auction, 45 before auction and 134 private sales.  The overall clearance rate was 57% with the houses clearance rates marginally higher than units (apartments, villa units and townhouses).

We will experience higher auction volumes throughout May albeit will likely be down on last year due to the Federal election coming up on the 18th of May.

The REIV released its median house price data for the first quarter of 2019 with the overall median house price falling to $793,000 which is down slightly by 1.4% from the previous quarter.  It should be noted the market has remained stable overall but some suburbs were already showing signs of recovery.

Glen Iris and Balwyn North recorded increases of 4.3% and 4.2% respectively and Eltham and Greensborough also saw healthy median house price rises.  Overall though it seems to be the more affordable suburbs such as Sunbury, Narre Warren, Point Cook and the likes that are experiencing price growth due to the house prices being more ‘affordable’ under $600,000.

There is still a consistent pattern of vendors not meeting the market on auction day and I believe this makes up the majority of the auction pass-ins.  We are witnessing many auctions with active bidding passing in to for the highest bidder to negotiate.  It is still taking time for some vendors to realise their property is not worth the same price as what would have achieved the same time last year.

On another note, we are offering free property portfolio assessments so please feel free to contact David Easterbrook or myself on 03 9592 1122 if you would like to discuss how your current properties are performing and structure a plan moving forward.

Have a wonderful week!

Kim Easterbrook and the team at Elite Buyer Agents.

 73 Harmsworth St, Collingwood Sold for $1,420,000

A well known taxidermist and jeweller sold her Collingwood warehouse over the weekend with interest from three bidders.  The property was quoted at $1,250,000 to $1,300,000 prior to auction and due to its uniqueness, was always going to be a property of interest to some.  The three bedroom, two bathroom home has history and used to be a button factory and was Collingwood’s first Scout Hall.  The bidding commenced at $1,200,000 and sold for $120,000 over reserve for $1,420,000.

2/14 Longview Ave, Bentleigh East Sold for $1,080,000

The downsizer market seems to be a touch more active this year with good quality single level, low maintenance homes selling well under competition.  In an unusual situation, a 10 year old bid on behalf of his grandfather to win the auction.  Five bidders fought to secure this property with a rapid series of bids.  The property was announced on the market at $960,000 and sold for $120,000 reserve to the downsizer for $1,080,000.

1D Woods Ave, Mordialloc Sold for $730,000

This two bedroom, one bathroom renovated period home with a very good floor plan last sold in 2015 for $1,130,000.  The home is well located close to Ripponlea shops and train station.  Two bidders again being a mix of a first home buyer and a downsizer were actively bidding to try and secure this home.  The property was announced on the market at $1,180,000 and sold to the downsizer for $1,215,000.

Clearance Rates
Melbourne

April 27-28 2019
This week: 378 Auctions

Clearance: 57%

Last Year: 67% [source: REIV]

Elite’s Weekly Market Wrap

15th April 2019

The clearance rate remained steady at 58% this week from 663 auctions.  Of the 663, 329 sold at auction, 53 before auction, 3 after auction and in addition there were 180 private sales.  138 properties passed in on a vendor bid.  Houses had a stronger clearance rate this week of 60% whilst units was 56%.

A very interesting report came out over the weekend in relation to first home buyers.  We know that this segment of the market is very active.  But what is surprising is the age group of some of these first home buyers entering into the market.  The State Revenue Office released statistics showing that buyers of all ages purchasing their home for the first time.

From July last year to February this year, 22,248 first home buyers purchased a property in Victoria of which almost 16,000 were under the age of 35.  3,237 were aged 40 plus with some buyers even buying their first home in their 60’s.  Some believe that the older first home buyers are moving from Sydney to Melbourne due to the high house prices, whereas the younger generation are still buying cars and travelling as their first priority before buying a property.

Many first home buyers are also making sure they make smart decisions for their first property with some paying for advice and engaging Buyers Advocates to assist them.  Many want to ensure they avoid making bad decisions and purchasing the wrong property, but also are concerned with setting themselves up for the future with dreams of owning a property portfolio.  We have buyers as young as in their 20’s engaging our services to secure their first property.

The market wrap will be returning after the Easter break on the 29th of April.

Have a wonderful long weekend!

Kim Easterbrook and the team at Elite Buyer Agents.

48 Orrong Road, Elsternwick Undisclosed

Bids were flying from all directions with downsizers and first home buyers trying to secure this dated, single level, three bedrooms, two bathroom townhouse in a brilliant location close to the Glen Huntly Road shops and train station.  It was obvious that buyers pushed way past their budgets in an attempt to secure this home.  The property was declared on the market at $1,000,000 (at the top of the agents price range) and sold for close to $1,300,000 under the hammer.

35 Lygon Lane, Carlton Sold for $595,000

Buyers love a rare type of property and this one was no exception.  A former stables which had been converted into a one bedroom, one bathroom home is small but works.  It appeared to be again a mix of downsizers and first home buyers interested in securing the property.  The property was advertised pre-auction for  $500,000 – $550,000 and the auction started on a genuine bid of $500,000.  The property sold to a first home buyer for $595,000 under the hammer.

12 Oak Grove, St Kilda Sold for $1,215,000

This two bedroom, one bathroom renovated period home with a very good floor plan last sold in 2015 for $1,130,000.  The home is well located close to Ripponlea shops and train station.  Two bidders again being a mix of a first home buyer and a downsizer were actively bidding to try and secure this home.  The property was announced on the market at $1,180,000 and sold to the downsizer for $1,215,000.

Clearance Rates
Melbourne

April 13-14 2019
This week: 663 Auctions

Clearance: 58%

Last Year: 66% [source: REIV]

Elite’s Weekly Market Wrap

8th April 2019

This week we saw an improved clearance rate from 54% last week back to 58% on 643 auctions.  307 sold at auction and 64 sold before auction.  Of the 271 that passed in, over 50% of those were on a vendor bid (163).  In addition, there were 157 private sales.  Both houses and units/apartments had a clearance rate of 58%.

While we are still waiting for the federal government to announce the election date, more vendors stalling from putting their properties on the market.  This is creating a shortage of properties for sale and we are certainly witnessing a shortage of high quality properties on the market.

The numbers of upsizers getting into the market to benefit from the more buoyant “entry level market” and the softer ‘’mid range” price point is increasing.  This market is really positive for buyers who are also wanting to move upgrade closer to the city.

Our team secured three properties last week, two of them at auction with multiple bidders and one off market property.  All for owner occupiers.  The investor market is still not as active as it was two years ago but this may change quickly, especially if Labor win and we should see an increase in investors wanting to enter the market prior to the 1st of January 2020 proposed changed policies.  That being said, I do wonder how effective their policy is going to be and how much first home buyers will actually benefit as the investor market is not significantly active at present.

Have a wonderful week everyone.

Kim Easterbrook and the team at Elite.

1/16 Lyndust Street, Brunswick East Sold for $720,000

Four bidders, all owner occupiers (and mostly first home buyers), fought it out to secure this rare find in East Brunswick.  Quoted at $650,000 to $680,000 prior to auction, this two bedroom, single level street fronted unit was popular.  There were more interested parties in the crowd that did not put up their hand.  The property was announced on the market at $695,000 and sold under the hammer for $720,000.

240 Moray Street, South Melbourne Sold for $1,561,000

This three bedroom, two bathroom townhouse was quoted $1,300,000 to $1,400,000 prior to the auction which the market determined was conservative after four parties bid hard to try and secure this three level, well located home.  Bids were flying from all directions with the property being announced on the market $1,350,000 and selling for $1,561,000 which was a huge $211,000 over the reserve price.

2/52 Stott Street, Box Hill South Sold for $920,000

A lovely thee bedroom, two bathroom, single level townhouse overlooking Gardiners Creek was popular with a mix of downsizers and first home buyers.  The property had a realistic price quote of $850,000 to $920,000 and interestingly the property was announced on the market at $880,000.  Five bidders in total attempted to purchase this property with the property selling for $920,000 under the hammer.

Clearance Rates
Melbourne

April 6 – 7th 2019
This week: 643 Auctions

Clearance: 58%

Last Year: 69% [source: REIV]

Good morning everyone!

This weekend we saw an increase in Melbourne auctions resulting in a slight decline of the clearance rate to 54%.  This week 696 auctions were held with 335 selling at auction and 41 before auction. In total there were 135 private sales.  Units/apartments had a higher clearance rate of 58% with houses 53%.

As a result of prices declining over the past twelve months, we are now seeing median rents increasing across Melbourne.  Melbourne median rents for houses remained unchanged but apartments increased 2.3% in February to $430.   The increase in rental yield has pretty much been seen across all capital cities except for Brisbane and Perth.

With the federal election looming, we may see these rental yields further increase if the Labor Government introduce limitations to negative gearing for investors from 1st of January.  This proposal could further hurt renters who are already struggling with unaffordable rents.

The purpose of the Labor Government’s proposal is to assist first home buyers to enter the property market however they might become even more challenged by facing increasing rents whilst saving for deposits.

The election date will need to announced by the 15th of April with the last date the federal election can be held being the 18th of May.

After what has been an incredibly busy buying month for our team, we would like to congratulate our excited purchaser who secured a beautiful home in Ascot Vale at auction on Saturday.

Hope you all have a lovely week.

Kim Easterbrook and the team at Elite.

2/5 Latrobe Street, Cheltenham Sold for $905,000

This large three bedroom, two bathroom villa unit went under the hammer on Saturday in front of a medium sized crowd who braved the rain.  Typically in today’s market, the auction was slow and the auctioneer had to work hard to extract bids.  It seemed there were buyers in the crowd who were going to bid but didn’t end up putting up their hand.  Perhaps they were waiting to see if the property passed in and then would be willing to negotiate.  That did not happen though with two bidders pushing the price above the $900,000 reserve with the property selling for $905,000.

7/1a Hawsleigh Avenue, Balaclava Sold for $662,000

A first home buyer secured this art deco apartment in need of a facelift in a competitive auction.  She was currently residing in the building as a tenant and loved the building so much she wanted to buy her own home in there.  The deceased estate had 230 groups through the campaign and a large auction attendance who braved the weather.  The company share titled property sold for $92,000 above reserve in a very quick auction.  The buyer is planning on renovating the apartment and bring it back to its former glory.

44 Moonee Street, Ascot Vale Sold for $1,745,000

We are thrilled that our client secured this beautiful period home in a great street of Ascot Vale on the weekend.  The auction started on a vendor bid of $1,500,000 and then another party jumped in at $1,525,0000 with our advocate David Easterbrook competing with the other party to secure the property at $1,745,000.  The property was announced on the market at $1,700,000.  A conservative result considering the location and the beautiful facade the property boasts.  Our client plans on renovating the home and we cannot wait to see the finished product.

Clearance Rates
Melbourne

March 30 – 31 2019
This week: 554 Auctions

Clearance: 59%

Last Year: 67% [source: REIV]

Good morning everyone!

This week we witnessed a 59% clearance rate which is a slight improvement from 58% last week.  Over the weekend there were 554 auctions held with 278 selling at auction, 47 selling before auction and in addition to this 125 private sales.

The sentiment appears to be starting to shift with some buyers confident to push a little harder at auction and abandoning the hope of a pass in.  Instead, we are seeing more confident bidding and buyers even attending some auctions with budgets well in excess of the agents quoted range.

The fall out from the Royal Commission seems to be yesterday’s news, with elections looming and the uncertainty of the Labour Government coming into power, buyers are taking advantage of the tail end of this cycle.  We are hoping that this will encourage vendors to put their property on the market as high quality stock is still on the scarce side.

Have a great weekend.

David Easterbrook and the team at Elite.

17 Wright Street, Brighton Sold for $1,350,000

A heritage listed property comprising of two principle rooms and then a lean-to at the rear, had been converted over the years to contain another living area, meals and kitchen over looking a green and private courtyard.  Buyers did not use the agents quote range as any indication of value with the property being quoted at $1,150,000 to $1,250,000 prior to auction.  The property was declared on the market at $1,250,000 but sold at $1,350,000 with 3 active bidders and more in the crowd that did not have the opportunity to raise their hand.

2/17 Ebden Avenue, Black Rock Sold for $952,000

This very well located 3 bedroom, 2 bathroom villa unit at the rear of only 2 was hotly contested on Saturday by downsizers and first home buyers.  A large crowd braved the rain to watch 3 bidders fight it out to secure this popular piece of real estate. There were many buyers wanting to bid but didn’t get a chance to with the strong bidding.  The bidding opened conservatively at $800,000 however in the end it was a Buyers Agent who secured the keys for their client for $952,500.

8/20 Bedford Street, Collingwood Sold for $991,000

A two bedroom townhouse located at the rear of development in Smith St. Collingwood was popular with first home buyers.   The property does not have a lot of outdoor living, however, that isn’t unusual for Collingwood.  We are seeing many first home buyers paying around $1,000,000 for their first properties rather than keeping under the $750,000 threshold. This is due to first home buyers wanting to purchase somewhere well located and convenient for their lifestyle which comes with a higher price tag.

Clearance Rates
Melbourne

March 23-24 2019
This week: 554 Auctions

Clearance: 59%

Last Year: 67% [source: REIV]

Good morning everyone!

The market wrap is back after the long weekend to report another increase in the clearance rate to 58%.  Over the weekend there were 648 auctions held with 317 selling at auction, 56 selling before auction and in addition to this 115 private sales.

We are seeing many auctions now with multiple bidders and a lot more confidence from buyers in general.  I believe that many buyers who have been sitting on their hands are now just starting to get on with it and we are seeing an increase in Investors in the market.

Last week, one of the major banks loosened their investor interest-only lending policy, which could only mean that possibly more banks will follow.  ANZ admitted that they were ‘overly conversative’ in its tightening measures.  They have changed their policy for residential investors to now have interest-only lending to be increased to a maximum of 90 per cent loan to value ratio and an increase in the interest-only period to 10 years.  We will watch this space closely to see what other changes the banks will make in the near future.

Enjoy the sunshine this week.

Kim Easterbrook and the team at Elite!

52 Shepparson Avenue, Carnegie Sold for $1,416

The auction of this property was one of the most competitive auctions we have seen in recent times with over 100 people in attendance.  The well located, four bedroom two bathroom home was quoted at $1,150,000 to $1,250,000 prior to auction.  Upto 10 bidders including three buyers agents put their hands up to try and secure the home with the property being announced by the auctioneer on the market in the high $1,200,000’s.  Selling for $1,416,000 under the hammer.

7/23 Raleigh Street, Malvern Sold for $560,000

The auction of this well presented two bedroom apartment in Malvern was more of a representation of the current market where it achieved active bidding albiet like pulling teeth. Most of the crowd were first home buyers who are usually quite reserved in their bidding.  The auctioneer worked very hard to attract bids with finally one young gentleman putting up his hand with another bidder being a father bidding on behalf of his daughter.  After a very slow auction, the father successfully purchased the property for his daughter for $560,000.

7 Larnook Street, Prahran Sold for $1,476,000

Entry level homes that are located close to the city are always in high demand especially ones that are renovated with good floor plans.   The three bedroom home was located in a beautiful street of Prahran and boasts a north facing rear.   The buyer mix included downsizers, investors and professional couples.  The popular home was announced on the market at $1,400,000 and sold to an investor under the hammer for $1,476,000.

Clearance Rates
Melbourne

16th – 17th March 2019
This week: 816 Auctions

Clearance: 56%

Last Year: 67% [source: REIV]

736 auctions were held this week over Melbourne with 354 selling at auction, 58 sold prior and 1 after auction.  In addition to this there were 149 private sales equating to 885 sales in total and a clearance rate of 56%.  The clearance rate seems to be stabilising in the 50’s however we are seeing a slight improvement in the rate week by week.

According to the REIV, some suburbs seem to be growing in value despite the Melbourne median house price declining over the past twelve months.  Carrum’s median house price has jumped 10 per cent over the past twelve months and the outer bayside area has been a popular investment location for Elite for many years now.  The new Skyrail may have contibuted to the increase but we have also seen an increase in buyers in Carrum/Chelsea and so on due to buyers wanting to stay close to the Bay but unable to afford the prices closer into the city.

Carlton and Elwood also saw a significant increase in median house price and now entering into the $2m median house price club.  There are now 10 suburbs in Melbourne with a median house price of over $2m with Brighton being nudged out to 11th spot with $1.99m.

Elite successfully secured properties in Yarraville and two in Camberwell last week.  One being the auction of 1/39 Donna Buang St, Camberwell.  This property is a very well location two bedroom, two bathroom villa unit renovated to a high standard.  The auction was very well attended and I was expecting some kind of bidding frenzy.  But that failed to happen.   The auction attracted bidding from three parties with the property being announced on the market at $905,000 and selling for $917,500 to our happy client.

This is a very good example of the performance of the Melbourne Property Market.  Twelve months ago (or even longer) this property would have been heavily contested by downsizers due to its great location, its single level and highly renovated.  The $2m plus market is showing signs of improvement, but not enough to convince the downsizer market to sell their family home and look at buying something smaller.  The property sold within the range that it should have, but two years ago, properties like this were experiencing run away results.

Have a wonderful week!

Kim Easterbrook and the team at Elite!

30 Churchill Ave, Cheltenham Sold for $865,000

This mid-century brick veneer home on 569 sqm requires immediate work to bring it to a liveable state.  However, being Cheltenham’s cheapest house on the market was always going to draw attraction.  Four bidders tried to secure this piece of real estate.  The property was quoted $800,000 to $850,000 prior to auction and sold under the hammer for $865,000.

45 Mawby Rd, Bentleigh East Sold for $1,315,000

A huge crowd attended the property of 45 Mawby Rd, Bentleigh East on one of the hottest days of the year.  Set on 632 sqm, this immaculate 4 bedroom, 2 bathroom home was extremely popular.  Bids were flying from every direction and the auction soared past its $1,080,000 reserve.  The property sold for $1,315,000 which is in excess or $200,000 over its reserve price.

2/30 Tivoli Rd, South Yarra Sold for $695,000

The established apartment market has stabilised and apartments with courtyards are very popular.  260 groups went through the property during the four week campaign which are huge numbers.  The auction was well attended by young professionals, first home buyers and investors.  Five bidders fought to secure this property where it sold $70,000 above its reserve for $695,000.

Clearance Rates
Melbourne

2nd – 3rd March 2019
This week: 816 Auctions

Clearance: 56%

Last Year: 67% [source: REIV]

816 auctions were held on the weekend which was the first real test for the Melbourne Property Market.  Of those, 345 sold at auction, 88 before auction and 383 passed in with 201 passing in on a vendor bid.  In addition, there were 149 sales.

I was disappointed to see another sensationalist headline in the media last week that “Sydney and Melbourne property prices could fall by half, in what one economist is warning will be a ‘property ‘bloodbath'”.  Even David Koch from Sunrise challenged this report by questioning why this particular ‘expert’ could possibly make these predictions with interest rates so low, population growth steady, unemployment low and a stable economy. I invite these scaremongering ‘experts’ to come and join us on the ground and see for themselves what is actually happening.

This week we saw some hugely competitive auctions and lots of buyers confidently bidding in the market place.  The first auction we attended was Friday night when an ‘acceptable offer’ was received on a family home in Sandringham.  You usually might see two or three parties attending a boardroom auction but when I arrived to the agencies boardroom there were 8 parties challenging the offer.  The property sold competitively for over $200,000 over reserve.

On Saturday, we attended five auctions with four out of the five auctions selling under the hammer, with the property that didn’t sell having multiple bidders and passing in due to a vendor’s high reserve.  Some examples being a single fronted home in Windsor attracting five bidders, quoted for $1,050,000 to $1,150,000 prior to auction selling for $1,277,000.  A family home in Bentleigh announced on the market at $1,770,000 and selling for $1,906,000 and an apartment in Caulfield attracting four bidders and selling for $65,000 over reserve.

There is no doubt there is still caution with some buyers in the property market, however it seems that many buyers are just getting on with it.  We have seen this since the second week of January.  Its time the media spoke to the real people who are working on the ground being selling agents and buying agents.  Or even better, I recommend journalists go out and attend some auctions and open for inspections and then report on what is really happening in the Melbourne Real Estate Market.

Have a wonderful week!

Kim Easterbrook and the team at Elite!

37 Eastbourne Street, Windsor Sold for $1,277,000

A large crowd attended the auction of 37 Eastbourne St, Windsor, popular not only due to the location but also its updated floorplan and side driveway.  The property was quoted at $1,050,000 – $1,150,000 prior to auction.  The auction was slow to start, as many auctions are these days however it gained momentum and five bidders participated to try and secure the property.  The property sold under the hammer for $1,277,000.

68 Robert Street, Bentleigh Sold for $1,906,000

50 onlookers attended the auction of this 4 bedroom, 2 bathroom family home well located in Bentleigh.  A genuine bidder opened the bidding at $1,600,000 and $50,000 rises were accepted by the auctioneer where a third bidder participated at $1,700,000.  The property was announced on the market at $1,770,000 and bidding continued strongly with a buyers advocate taking home the keys for his client for $1,906,000.

12/3-25 Hanover Street, Fitzroy Sold for $727,000

Another large crowd of over 100 attended the auction of the deceased estate sale.  The two bedroom, one bathroom, unrenovated top floor apartment was quoted $590,000 to $640,000 prior to auction.   More than 30 contracts requests demonstrated this was going to be a contested auction.  Six bidders in total tried to secure the apartment which was announced on the market at $620,000.  The property sold for $727,000 a huge $107,000 over reserve.

Clearance Rates
Melbourne

23rd – 24th February 2019
This week: 816 Auctions

Clearance: 53%

Last Year: 70% [source: REIV]

Melbourne’s clearance rate of 56% is the highest clearance rate achieved since the downturn began in September last year.  Auction attendances were up and there is no doubt there are a lot more buyers attending open for inspections.  I am hearing many reports of properties achieve 50 to 100 groups through for their auction campaigns.

Of 453 auctions held, 212 sold at auction and 41 sold before auction.  103 passed in on a vendor bid.  Clearance rates for homes exceeded units, 57% to 54%.

We are seeing the first signs that we are entering into a balanced market however the odd ‘good buying’ opportunity is still popping up.  Auctions over the weekend were generally well attended (as they were last year) but there is still of the element of some buyers sitting on their hands.  I heard many reports of buyers actually not bidding at auction and waiting to put an offer in after the property passed in.  On numerous occasions, the selling agent was then dealing with multiple buyers wanting to put offers in on the respective properties.

The disadvantage of negotiating in a pass-in scenario is that you lose the power of having transparency which you would have if you were to be buying under the hammer.  And quite often you might end up paying more as selling agents use their strong negotiation skills and tactics to achieve the highest price for the vendor.

Our purchase of the week was a renovated double fronted period home in Williamstown which was very popular with buyers.  The auction campaign was only two weeks through with over 50 groups inspecting the property.   We purchased the property pre-auction in a back and forth negotiation over the phone with competition from one other strong buyer.  All other buyers were knocked out with the pre-auction offer.  Our clients were extremely happy to secure the well located, renovated home in which they are fortunate to make their new home.

Have a wonderful week!

Kim Easterbrook and the team at Elite!

6 Roosevelt Crt, Brighton East Sold for undisclosed

A crowd of 40 people attended the auction of this two bedroom home in the Brighton Golf Course district.  The quiet court location is a drawcard for families and the property is most suited as a new home site.  Two bidders fought to secure the property where the property was announced on the market at $1.645m and sold shortly thereafter

66 Newell St, Footscray Sold for $1,230,250

Six bidders (mostly upsizers) worked hard to try and this dated, period home on 594 sqm.  65 people were in attendance to watch the property sell well over its $1.15m reserve.  There was a considerable amount of work required to bring this beauty back to its former glory but the real appeal was the large land size which is a rare find so close to the city.

16/47 Denbigh Road, Armadale Sold for $716,000

Large, well located apartments are very popular with first home buyers who are trying to enter into the market in affordable housing in blue chip suburbs.  This large, neat and tidy two bedroom apartment was no exception.  The auction of this property was well contested and sold well over the reserve of $670,000.

Clearance Rates
Melbourne

16th and 17th February 2019
This week: 453 Auctions

Clearance: 56%

Last Year: 71% [source: REIV]

It was another quiet weekend with only 237 auctions held over the weekend.  95 sold at auction, 29 before and 149 private sales.  Auctions volumes will increase over the next few weeks and we will really start to see how the property market is shaping up.  The open for inspections we attended over the weekend had lots of buyers through and there seems to be a more positive sentiment in the market than November/December last year.

It was a busy week for the team at Elite with five property acquisitions in locations all over Melbourne.  These included purchases for one first home buyer, two investors and two home buyers via private sale and off market negotiations.

The topic everyone is talking about is the outcome of last week’s banking Royal Commission.  No doubt this is going to become very political leading up to the Federal Election.   What does this mean for the banks, mortgage brokers and property buyers?

How banks assess loans was one of the large issues that was reviewed during the royal commission.  The good news for buyers is that banks already had taken steps last year (which was one of the causes of the property market slowdown) to make changes to assessing loans to ensure the applicant could pay back the loan.  There is even argument here that the banks went too far.  Commissioner Kenneth Hayne acknowledged that the banks had already made the appropriate steps to improve compliance and now this topic seems to be a mute point.

But the most controversial outcome is the view from the Royal Commission that mortgage brokers are not acting in their client’s best interests.  The argument is that there is a conflict of interest between the brokers recommendations for loans and how they get paid from the banks.  The recommendation is a model where the ‘borrower pays’ rather than bank pays.  There are bad eggs in all industries, we all know that, but it seems unfair that mortgage brokers are pin pointed in the Royal Commission when it was the actions of the 4 big banks which started this whole saga.

Over the years we have worked with many amazing mortgage brokers and will continue to do so.  We have seen the hard work they do for their clients and only have their best interests at heart.  Moving to a user pay model will be damaging for the mortgage broking industry and will only give more power to the big banks as the smaller banks will have less reach via the mortgage broker channel.

Have a wonderful week!

Kim Easterbrook and the team at Elite!

46 Ferdinand Avenue, Balwyn Sold for undisclosed

A large crowd squeezed into updated kitchen to watch the auction of this brick home on large land of 1,099 sqm in the Balwyn High School zone.  The auction started slow with the auctioneer kicking it off at $1,950,000 on a vendor bid.  2 bidders participated in the auction and it was announced on the market at $2,075,000 and knocked down to the highest bidder.

93 Pakington Street, Kew Sold for $1,050,000

This well located entry level home in Kew attracted strong bidding despite the fact that it needed a complete makeover.  The bidding started at $900,000 and the property was announced on the market at $1,001,000 as the bidding slow down.  A knock out bid saw the property sell at $1,050,000 to a buyer who saw the property for the first time that day.

124 Gwynne Street, Richmond Sold for $1,530,000

Well located, inner city properties are in high demand, even ones that require work.  This double fronted home attracted strong bidders from young professional couples due to is land size of 300 sqm and proximity to the city.  The property was quoted $1,400,000 to $1,525,000 prior to auctions and sold for $1,530,000 under the hammer.

Clearance Rates
Melbourne

9th and 10th February 2019
This week: 237 Auctions

Clearance: 52%

Last Year: 73% [source: REIV]

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