The Spring market is offering buyers their best shot in years at purchasing properties at lower prices not been seen for many years. The banks have toughened on their lending criteria meaning that buyers are not being able to borrow as much as they could of say twelve months ago. Plus the increase in stock which is normal for this time of year, are allowing some good opportunities for buyers that previously could not afford what they were hoping to buy. Vendors also become increasingly motivated this time of year with the desire to sell before Christmas.
On the flip side of this, we are seeing some prestige sales being no longer confined to the Bayside or leafy Eastern suburbs of Melbourne. With neighbourhoods in the north and the west now fetching sales in excess of $2 million.
Over the weekend, there were 274 properties sold at auction in Melbourne, with 79 selling prior to auction and 313 being passed in, 156 of those on a vendor bid. In addition to the auctions, there were also 170 private sales. The result, was a clearance rate of 53%.
We are positive about the future of the Melbourne property market, with prospects in certain key suburbs bucking the current trend. With our strong population growth continuing, low interest rates and prices still considerably cheaper than Sydney’s, the ease in buying conditions may only be short-lived and its the savvy investors who are making the most of the current opportunities.
Kind Regards,
The Team at Elite.
60 Ruskin Street, Elwood Sold for $ undisclosed
Evidence that that $2m plus market is not performing as well as it was this time last year was the auction of this renovated period home in one of Elwoods best streets. The auction was well attended albeit by neighbours with 40 onlookers enjoying the sunny day. The opening bid was $2.1m vendor with no more bids until after the half time break. A genuine bidder came into the mix with a large increase on the vendor bid of $2.165m. Another bidder jumped in and the property passed in to the second bidder at $2.22m. The property sold immediately afterwards for an undisclosed amount.
30A Seventh Street, Parkdale Sold for $862,000
A crowd of about 40 gathered in the sun to watch a well presented 2 bedroom unit with private front garden and street frontage go under the hammer. The property is one of only 2 on the block and has its own driveway and lockup garage, appealing to downsizers and investors looking to live close to Parkdale Village and beach. An opening bid of $740k was quickly answered by another bidder with a rise of $10k. The 2 battled it out in various denominations until the first bidder remained at $852K. As the agent was about to let the hammer fall a third bidder jumped in with $855k. Another battle ensued until the first bidder finally won the keys at a healthy $862k.
20 Bailey Avenue, St Kilda East Sold for $1,606,000
This 3 bedroom home in St Kilda East was auctioned on Sunday with a focus on its location which was situated between schools and the station in a prestige cul-de-sac. This solid-brick c.1917 home was set around 480sqm with lovely mature gardens. Bidding started off from a gentlemen at $1.2m with a crowd of around 31 attending the auction. Bidding was slow to start at first, so the auctioneer put in a vendor bid of $1.25m. Thereafter this point a flurry of bids from multiple bidders proceeded. At $1.510m the property was on the market and after another quick succession of final bids around mid $1.55m mark continued until the property was sold for $1.606m.
Clearance Rates
Melbourne
15th October 2018
This week: 666 Auctions
Clearance: 53%
Last Year: 75% [source: REIV]
There is no doubt there has been a shift in the sentiment of the Melbourne Property Market over the past few months. As a result, we are witnessing more auction pass-ins but most properties are selling quite soon thereafter via a private sale negotiation. Although, in contrast, we are still seeing some runaway results in the inner city for well attended auctions, for example, in Hawthorn, Camberwell and South Melbourne.
Home values overall are down 2.7 per cent nationally since peaking in September last year, according to the latest home value index from property analysts CoreLogic. This is no where near as disastrous as what the media are reporting. And one can’t forget that Melbourne experienced 56.4 per cent growth over the past five years to January 2018.
Over the weekend, there were 285 properties sold at auction in Melbourne, with 93 selling prior to auction and 300 being passed in, 155 of those on a vendor bid. In addition to the auctions, there were also 184 private sales. The result, was a clearance rate of 56%.
We have seen a decline in Investors in the marketplace due to the banks tightening their lending criteria. As a result this has opened up opportunities for owner occupiers, first home buyers, and downsizers who now don’t have to face as much competition to secure properties.
As a summary, we are seeing most buyers keeping their cards very close to their chests. Often allowing properties to pass in and then putting themselves forward to negotiate. We are experiencing a balanced market at present and if the properties are marketed well and priced right, are usually selling under competition from more than two buyers.
Kind Regards,
The Team at Elite.
26 Weymar Street, Cheltenham Sold for $1,045,000
There were 30 people who attended this auction which was quoted $950,000 to $1,045,000. This home is located in a popular, quiet location of Cheltenham. With mostly young families in the crowd, the bidding was a true reflection of the market conditions at the moment. The auctioneer had to work extremely hard to extract any bids and was almost going to pass it in on a vendor bid when a young man jumped in right at the last minute. The genuine bidding then started at $980,000 with the property almost passing into the only bidder when at the last minute again, another bidder entered the contest. They only went back and forth a few times when the original bidder bowed out and the property passed in at $1,020,000. The property later sold for $1,045,000.
55 Swinburne Avenue, Hawthorn Sold for $2,165,000
In Hawthorn, more than 100 onlookers attended the Saturday morning auction of a 3 bedroom, 1 bathroom Spanish mission-style home, at 55 Swinburne Avenue. Set on a 673 sqm (approx) block, this property has been in the same family for around 60 years. It offered an art deco period style with broad family appeal and scope to renovate in the future. The property attracted a good crown of spectators with bidding becoming serious betweeen two bidders around the $1,999,000 market with the property eventually being sold for $2,165,000 showing the market in key suburbs does not always follow the downward trend.
1/11 Roseberry Grove, Glen Huntly Sold for $492,000
This 2 bedroom 1 bathroom apartment in Glen Huntly went to auction on a sunny Melbourne Sunday with moderate crowd in attendance. Tucked to the rear of the block, the home offered the appeal of a welcoming entrance hall off which is a large kitchen including ample work and storage space along with a relaxed meals area. With it’s location just stroll from the station and close to both bus and tram routes it was a perfect first home, downsizer or easily rentable asset. The auction started on a vendor bid of $430,000, the auction began with two bidders competing for the property, which later was joined by a young couple and another female bidder. The property was announced on the market at $480,000, with the property being sold to a fifth bidder at the end of the auction for $492,000.
Clearance Rates
Melbourne
8th October 2018
This week: 670 Auctions
Clearance: 56%
Last Year: 74% [source: REIV]
The weekend kicked off with some beautiful weather on Saturday which was ideal for Melbourne Spring auctions. The property market held up well considering there were 818 auctions and achieving a 57% clearance rate.
The Melbourne Property Market is currently running at two speeds. The $2m plus market has seen a decline in buyers across the board with the pricier properties having less bidders at auctions, with many passing in and either selling immediately after the auction, or via private sale thereafter. Entry level properties in quality suburbs is currently the most active market with many auctions achieving multiple bidders and properties selling well in excess of reserve.
With ANZ, CBA and ING increasing their interest rates in September, many buyers are shopping the banks to ensure that they have got themselves a competitve rate. There is no better time than now to speak to your mortgage broker to ensure you are with a lender that is offering a reasonable deal.
There will be very few auctions next weekend due to the AFL Grand Final and therefore no market wrap next Monday 1st October. But we will be back the week after and look forward to attending and reporting on a couple of Super Saturday auction weekends in October.
Kind Regards,
The Team at Elite.
2/2 Monamie Avenue, Highett Sold for $835,000
A well attended auction gathered to watch the rear of only 2 villa units in the heart of Highett go under the hammer. Well located villa units are currently one end of the market that is performing very well. The auctioneer did not have to call for bids for very long with one buyer opening the bidding at $650,000. No less than 2 seconds later, another bidder jumped in with an aggressive bid of $800,000. Two more bidders entered the contest but the property sold to a gentleman sitting on his car for $835,000. The auction was all over in about 3 minutes!
1/51 Wandsworth Road, Surrey Hills Sold for $ unknown
The auction of this centrally located 3 bed, 2 bathrooms and 2 car park premises in Surrey Hills attracted a good crowd of 71 people. This luxurious single level flat offered the buyer access to a great lifestyle, walk to the tram, train and schools. It was mainly targeted at the downsizer with nothing to renovate since it was in great condition for its age. Opening statements were given and the first bid was a vendor bid of $1,500,000 which there were no other bidders coming to the table at that time. After a couple of minutes the auctioneer went inside to consult the vendor, only to return with another vendor bid, but again there were more spectators even though there were apparently interested parties in the crowd. The property was passed in at $1,525,000 and again showing the downsizer market is currently very slow.
17 O’Hara Street, Blackburn Sold for $1,455,000
The auction of this development site with a liveable house on it failed to fire. This property is extremely well located close to shops and the train station. The auctioneer had many attempts to try and encourage genuine bidding however was not successful in doing so and placed multiple vendor bids before passing the property in. The property passed in but sold over the weekend for $1,455,000. Due to lending restrictions developers are less active in the market which is giving rise to some opportunities for developers who are able to access a loan.
Clearance Rates
Melbourne
24 September 2018
This week: 818 Auctions
Clearance: 57%
Last Year: 74% [source: REIV]
There were 343 properties sold at auction in Melbourne, with 74 selling prior to auction and 313 being passed in, 170 of those on a vendor bid. In addition to the auctions, there were also 192 private sales. The result, was a clearance rate of 57%.
As the market becomes more balanced between buyers and vendors, first home buyers seem to be rushing back into the market whereas the downsize market remains quiet (generally speaking).
We are seeing more properties being sold before auctions due to vendors not wanting to risk losing a good offer come auction day. Many buyers are also sitting on their hands waiting for properties to pass in.
Melbourne’s outer suburbs continue to produce more strong results. And again, we are still seeing some suburbs within Geelong and the outer ring of the West and South East produce some great opportunities for buyers.
Kind Regards,
The Team at Elite.
20A Wave Street, Elwood Sold for $1,350,000
On a blustery day in Melbourne around 48 people attended the auction of a 3 bedroom single level home in Elwood. This home offered an established private inner city escape, craftsman built with timeless finishes and free from body corporates. Only minutes to shops and transport, and a heartbeat to Elwood Village cafes, boutiques and restaurants, walk to Elsternwick Park, the beach and the local schools. The opening bidding started out at $1,175,000 and was fought out between one other bidder. The property was announced on the market at $1,200,000 with bid increments of $10,000 then slowing down around $1,300,000 to later sell for $1,350,000.
21/30 Tanner Street, Richmond Sold for $1,850,000
In a super central Richmond position and north facing, this outstanding top-floor apartment went to auction in Richmond. With its sweeping uninterrupted views across Richmond Hill added a breathtaking perspective to the brilliant design and contemporary style of this luxuriously-appointed apartment. The auction was attended by around 65 people with 5 bidders for the property. The auction demographic was predominately middle aged professionals. The starting bid kicked off as a vendor bid of $840,000 with $10,000 bid increments to start. At $970,000 the apartment was announced on the market, and in the end after a flurry of bids the final bid and knockdown price of $1,850,000 was achieved.
83 Glen Iris Road, Glen Iris Sold for $1,795,000
This lovely 3 bedroom period home near Ferndale Park, with a 2 bathroom layout and a north-facing living room with kitchenette beside one of the bedrooms and bathrooms went to auction over the weekend. A decent crowd of people were in attendance at the auction for this period home with classic style and it’s prized position in Glen Iris. The property offered the winning bidder the potential to renovate or reinvent the home which already came with an elegant kitchen including Blanco and Asko appliances. The property at the end of the bidding was sold for $1,795,000 under the hammer.
Clearance Rates
Melbourne
17th September 2018
This week: 730 Auctions
Clearance: 57%
Last Year: 74% [source: REIV]
