Good morning everyone,

The dreary weather did not stop buyers coming out to auctions on the weekend with another improvement in the clearance rate.  Of 522 auctions held this week, 296 sold at auction, 45 before auction and there were additional 151 private sales.  Houses had a much stronger clearance rate on the weekend of 68% with units 62% bringing the overall clearance rate to 65%.  The auction count though is still significantly lower than this time last year.

The after effects of the election are starting to be felt across not only the property market, but other industries as well.  The nation seemed to be in a holding pattern due to the level of uncertainty a potential Labor win was going to bring.  The travel industry has since seen a boom in holiday bookings due to self funded retirees no longer putting their holiday plans on hold because of the proposed reform in the franking credit policy.

In addition to that, it seems that some buyers are no longer putting their property purchasing plans on hold with the banks and mortgage brokers reporting a significant increase in home loan applications since the result of the election was known.

Core Logic has also reported that the falls in property prices have substantially improved with its lowest fall rate in quite some time of only 0.3% across Melbourne in May.

For those who have been delaying their property purchasing plans waiting to see what is going to happen with property prices, now might be the time to make the leap.  There are multiple signs that a market recovery is not too far in sight and there is a confidence in the market that has not been seen for quite some time.

Stay warm and have a great week.

Kim Easterbrook and the team at Elite Buyer Agents.

 31 Johnson St, Northcote   Sold for $1,430,000

This two/three bedroom, one bathroom, single fronted home proved very popular at auction.  The bidding started with an opening bid of $1,275,000 well over the advertised price range and announced on the market at $1,300,000.  Five bidders participated in the auction (many knocked out early) and the property sold $130,000 over the reserve price for $1,430,000.

1/20 Clydebank Road, Edithvale  Sold for $855,000

This well located, street fronted, brand new townhouse attracted a good crowd at auction.  The bidding commenced at $800,000 and quickly rose to $840,000 within two bids. Another bid took it to $850,000 where the property was announced on the market (and top of the advertised price range) where it sold with just one more bid at $855,000.

11 Jeffrey Street, Blackburn  Sold for $1,920,000

When purchasing property, we love to see some kind of X Factor and this property certainly had that with a creek running through its large backyard.  Three buyers participated in the auction but it was an architect who is planning on renovating the home that took away the keys.  The property was announced on the market at $1,850,000 and sold under the hammer for $1,920,000.

Clearance Rates
Melbourne

Jun 1 – 2 2019
This week: 522 Auctions

Clearance: 65%

Last Year: 62% [source: REIV]

Good morning everyone,

The cold wintery weather over the weekend did not seem to deter buyers in the market with the clearance rate remaining stable at 64%.  The clearance rate was achieved on a weekend with higher volumes which seems to suggest the market is holding up quite well. Melbourne had 711 auctions on the weekend with 399 selling at auction, 1 after and an additional 154 private sales.  The clearance rate for houses was 65% and units 63%.

The news of the week surrounds APRA announcing they are proposing changes to how the banks assess home loan applications which could result in an increase in borrowing capacity for many Australians.

At present, the banks assess home loan applications on the ability of the applicant to repay the loan if it were to be at a minimum of 7% interest rate.  APRA are now proposing that the banks set their own floor as long as they account for a 2.5% buffer on the current interest rate.

So what does this mean?  Well at some point we believe that the banks will start loosening their restrictions on lending to allow more people to borrow money and more of it.  Which means there could be more buyers and buyers could have bigger budgets to play with.  This could be start of the cycle turning.

In addition to the APRA changes, many experts are predicting that interest rates will decrease by 0.25% at the next Reserve Bank meeting on the 4th of June.  Another aspect which could encourage more buyers into the market.

Whilst we are still predicting 2019 to remain a balanced market, there are enough noises in the market to indicate there could be some kind of recovery in the not too distant future.  APRA changes, interest rate cuts and more incentives for first home buyers should drive more buyers into the market.  There appears to be a shift in the sentiment of the market with agents reporting more buyers attending opens and more bidders at auctions.

Keep warm and have a great week!

Kim Easterbrook and the team at Elite Buyer Agents.

 6 South Terrace, Clifton Hill  Sold for $4,515,000

The late 1800’s double fronted, freestanding terrace had been fully renovated some 20 years ago.  Spectacularly located across the road from a park, the auction attracted approximately 200 people to witness 2 bidders try to secure the unique property. The auction started on a genuine opening bid of $4,000,000 and after a number of strong and consistent bids the auction reached $4,200,000 when the property was declared on the market. The bidding war continued between the younger couple and the buyers advocate until the buyer’s advocate’s limit was reached and the younger couple won the beautiful home for $4,515,000.

11 King William Street, Fitzroy  Sold for $2,200,000

One of Fitzroy’s oldest homes went under the hammer over the weekend.  11 King William Street, Fitzroy is a 165 year old attached Georgian property, three bedroom, one bathroom, two car parks in good condition internally.  The property was quoted at $1,800,000 to $1,850,000 prior to auction and with the auction starting conservatively at $1,600,000.  It only took two bidders and lots of bids to drive to price way past its reserve of $1,900,000 (when announced but could be on the market earlier) to sell for $2,200,000.   The purchaser plans on building an extension on the property which the vendor had plans and permits issued to do so.

7/10 Wrexham Road, Windsor  Sold for $615,000

We are consistently seeing auctions of similar type properties with multiple bidders, mainly first home buyers, trying to secure entry level two bedroom apartments close to the city.  This auction was no exception.   Four parties bid to secure this well located, renovated, two bedroom apartment in Windsor but it was a dad bidding on behalf of his son that took home the keys. The property was advertised at $560,000 to $610,000 prior to auction with the apartment selling for $621,000.  Although we are seeing good activity from first home buyers, we are not experiencing run away results as such with most of the first home buyers having restricted budgets.

Clearance Rates
Melbourne

May 25-26 2019
This week: 711 Auctions

Clearance: 64%

Last Year: 64% [source: REIV]

Good morning everyone,

Finally, the result is known and thankfully the election didn’t result in a hung parliament which could have resulted in the winning party not being announced for another two weeks.  Liberal were the clear winners which we know some people will be happy about and others not.

So what does that mean for Australia’s property market?  The biggest segment to benefit will be First Home Buyers with the government planning on providing low deposit funding.  At this stage, I am not aware of any capping on the purchase price however it will likely affect the sub $750,000 market.

The government is planning on supporting 10,000 First Home Buyer loans each year, which realistically will be encouraging new buyers into the market as they currently would not be able to get a loan.   This could stimulate this segment of the market.

Another Liberal proposal to watch is the proposal of the fast train between Geelong and Melbourne.  It is still very much up in the air as to whether this will proceed or not, and if it were to proceed is years away from being completed.

Now that we have a publicly voted Prime Minister in power, let’s just hope that there is not another leadership spill and that the Government can offer stability moving forward.

Have a wonderful week!

Kim Easterbrook and the team at Elite Buyer Agents.

 145 Male Street, Brighton  Sold for $2,620,000

Three bidders went head to head to secure this very liveable family home on 808 sqm.  The house could do with an update in the future to bring it to its full potential.  The auction opened on a genuine bid from the crowd of $2,500,000 and the pace was slow to start but the property sold to a couple in their 40’s for $2,615,000.

41 McLean Ave, Bentleigh  Sold for $1,485,000

Even though boasting a reasonable floor plan, the house did need quite a lot of work.   Well located and a north facing orientation proved popular with buyers.  Four bidders attempted to purchase the property with the successful bidder buying the property for $1,485,000 which was $165,000 over the property being announced on the market.

32 South St, Hadfield  Sold for $750,000

Entry level houses are still proving popular especially with first home buyers.  This updated, four bedroom, one bathroom home on 588 sqm proved popular and attracted bidding from three parties.  The auction started on a $675,000 genuine bid and announced on the market at $726,000 with it being knocked down for $750,000.

Clearance Rates
Melbourne

May 18-19 2019
This week: 295 Auctions

Clearance: 65%

Last Year: 65% [source: REIV]

Good morning everyone,

Melbourne’s clearance rate remained steady over the weekend with a clearance rate of 60%.   Again lower auction volumes with 384 auctions held, down on last week and last year.  Of that 189 sold at auction, 41 sold before auction and 165 additional private sales.  The clearance rate for houses was 60% and units/apartments was 59%.

This week the election campaigns will be in full force in preparation for Saturday’s election.  The Liberal party has now jumped on the bandwagon to help first home buyers but in a different way to the Labor Party and one that I see working better than Labor’s negative gearing policy.  Liberal have proposed to set up a scheme to offer loan guarantees for first home buyers.  This means that first home buyers could buy their properties with deposits of just 5% of the price.

How this proposal is meant to work is the amount of loans would be capped at 10,000 per year and “that would include guaranteeing, to approved applicants, the additional loan amount taken out by the first-home buyer to cover the difference between the lower deposit of, say, 5% and 20% of the value of that property.’ Scott Morrison stated.

There are more conditions to these loans but it is a last minute dash to try and win over votes from what would be a segment of the market that may largely be voting for Labor.  Since the announcement though, Labor have now also come out and said they will match this scheme.

We will have a very interesting week ahead of us all and no doubt we all are looking forward to an outcome coming to fruition next Saturday.

Have a wonderful week!

Kim Easterbrook and the team at Elite Buyer Agents.

 21 Burgess St, Bentleigh  Sold for $1,210,000

4 strong bidders fought extremely hard to secure this entry level home in Bentleigh.  This cute 3 bedroom, 1 bathroom home on a subdivided block across the road from the train line was popular due to the convenient location between Centre and Patterson Rd shops and train stations, but also because the property had been well renovated and had loads of character.  The property was announced on the market at $930,000 and sold well above reserve for $1,210,000.

18 McHenry St, St Kilda East Sold for $2,070,000

It’s hard to believe a semi-detached home could achieve over $2m in this market, however, this one attracted bidding from three parties.  This renovated, three bedroom, two bathroom home ticked all the boxes, even having the north facing rear orientation.  The property sold for $2,070,000 which we believe was a strong result.  St Kilda East seems to be attracting more interest of late due to it being slightly cheaper than its surrounding suburbs of Prahran, Elwood and Ripponlea.

13 Desmond Ave, Highett  Sold for $1,255,000

A three bedroom, one bathroom home (which also had amazing gardens) on a 605 sqm attracted bidding from three parties.  The very well located property was quoted $1,100,000 to $1,200,000 prior to auction and represented a solid entry level home for a highly sought after suburb.  It seems entry level or unique properties are predominately the ones that are getting good interest at auction.  The property sold for $1,250,000.

Clearance Rates
Melbourne

May 11-12 2019
This week: 385 Auctions

Clearance: 60%

Last Year: 63% [source: REIV]

Good morning everyone,

Winter is just around the corner and historically we see stock levels decline over the June and July months as vendors avoid selling in the winter period.  We may experience something slightly different this year with some vendors holding off until after the election to put their property on the market.  The sales volumes in May is predicted to be down on previous years and even though June will naturally be a quiet month, we may see higher stock levels than last year due to the delay of properties coming onto the market.

As a result of the lower stock levels and solid buyer activity, the clearance rate jumped to 63% over the weekend.  Of the 463 auctions held, 247 sold at auction and 46 before auction.  There were also 169 private sales.  The clearance rate for units was 64% and houses 63%.

We are still witnessing some properties struggling to sell at auction with vendors still too high in price.  But we are also seeing some properties selling extremely well under competition.  We have personally been to many auctions over the past month that have had bidders frantically pushing past their budgets to secure them.   At times, auctions not dissimilar to what we saw when the market was heated.

As some people feel a level of uncertainty when an election is looming, I think we all agree that we are looking forward to after the 18th of May and a decision been made.

Have a fabulous week!

Kim Easterbrook and the team at Elite Buyer Agents.

 13/33 Kensington Rd, South Yarra Sold for $610,000

This updated, two bedroom apartment in a popular location was very popular with first home buyers with active bidding from four parties.  The bidding was slow but steady and was clear that all parties went there with a set budget in mind and none stretched past them.  Something we are seeing often in the current market.  The property was announced on the market at $605,000 and sold for $610,000.

54 Garton Street, Carlton North Sold for $2,380,000

A huge crowd attended the auction of this very popular unrenovated terrace in the exclusive Princes Hill precinct.  The auction was competitive from start to finish with a genuine opening bid of $1,800,000.  The property was announced on the market at $2,000,000 which was accurate against the price quoted prior to auction.  The property sold for a whopping $2,380,000 equating to $380,000 over reserve achieved from 7 bidders.

5/26 Victoria St, Fitzroy Sold for $985,000

Another auction that attractive competitive bidding was 5/26 Victoria St, Fitzroy due to being quietly located near the busy Brunswick St precinct.   Six bidders worked hard to try and secure the three bedroom unit which was quoted at $800,000 to $880,000 prior to auction.  The property was announced on the market at $900,000 after fast bidding but the auction did not stop there.  The property sold for $985,000 to investors.

Clearance Rates
Melbourne

May 4-5 2019
This week: 436 Auctions

Clearance: 63%

Last Year: 66% [source: REIV]

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]