It’s nearly Christmas and, as the year draws to an end, tension levels seem to be rising.

In the past, as the market gets closer to wrapping up for the year, we usually see both vendors and buyers soften in their negotiations to secure their desired outcome.

It seems (for the time being at least) that many vendors, sitting on properties that have already failed at auction, are quite content to keep asking their ‘above market’ prices and hold onto their homes. Many vendors need a certain price, either to match a bank valuation or to provide the funds for their next purchase.

Perhaps new buyers will enter the market in the new year and the prices will be paid; however, these vendors may find their property among a growing number of homes that haven’t sold. Or, worse still, among a large pack of ‘fresh’ new listings.

One of the bigger differences in 2024 is the increase in homes (at all price points, even some villa units and apartments) being marketed using the ‘expression of interest’ method.

While most buyers find the EOI process challenging, it provides the vendor with some protection around interest levels and pricing, particularly if they are wanting a higher than market price.

Having monitored many EOI campaigns throughout the year, a high majority have sold within, or below, the quoted range.

We have seen a number of homes purchased during 2021 and 2022 quickly come back up for sale. Although some have sold well, others have seen quite a loss.  As an example:

Most vendors who bought for a very strong price during those years are now struggling to get back what they paid. If they are also asking on top for ‘transaction costs’ (ie stamp duty etc) that is almost impossible to achieve.

There have also been some very big sales at the top end of the market, although some also took a while to sell:

 So what can we expect for 2025? We think there are still a number of vendors suffering from mortgage stress. If there is no reprieve in sight, there could be quite a few new options for buyers in the new year. With interest rates not likely to drop until May, can vendors hang on?

This year we have seen a steady climb for ‘land’ sales, as buyers’ confidence grows to build new and/or renovate. We would expect this to continue, as the planning process has become more streamlined and councils in certain parts a bit more ‘relaxed’.

Some vendors of the more rural areas of Melbourne that experienced very rapid growth during the Covid years (such as the Mornington Peninsula) are now suffering from the interest rate hikes and land tax increases. We expect to see a further increase in homes for sale as many vendors have their ‘last summers’ before putting their properties on the market.

With the increased supply and decrease in demand, there are likely to be some very good opportunities for buyers. But, as always, you need to know exactly what you are buying and ensure you do the proper due diligence. If you don’t, it could cost you dearly.

For now, though, it’s time to regroup and relax with family and friends and we wish everyone a Merry Christmas, Happy New Year and safe and happy holidays.

There are a multitude of “pre-market’ properties scheduled for campaigns in February/March 2025 with vendors happy to receive early (high) offers now, along with a variety of more traditional ‘off-market’ properties. Here a selection:

• Near new, Hamptons style, 4-4-2, ~580, west rear, Brighton – circa $5m+
• Spanish mission, 4-2-2, single level, ~700sqm, Brighton – circa $5m
• Updated family home, 5-3-2, north rear, ~650sqm, Brighton East – circa $3.9m
• Cal Bung, Castlefield Estate, 4-2-2, ~700sqm, north rear, Hampton – circa $3.4m
• Single level family home, 4-2-2, ~560sqm, east rear, Sandringham – circa $2.5m
• Period w modern rear, 4-3-2, ~680sqm, west rear, Sandringham – circa $3.75m
• Family sized TH, water views, 4-3-4, ~470sqm, Black Rock – circa $2.85m
• Original home 4-2-2, pool, ~900sqm, ~23m frontage, north rear, Beaumaris – circa $2.75m
• Renovated 3 storey townhouse, 3-2-2, north terrace, Prahran – circa $1.8m
• Vacant land with pool foundations, ~1150sqm, north rear, Kooyong – circa $5.1m
• New home site ~580sqm (~18.3m frontage), north rear, no HO, Toorak – circa $6m
• 3 storey TH, 4-3-2, north balcony, Malvern East – circa $1.4m
• C1910 brick home, 4-3-2, pool, ~790sqm corner block, Glen Iris – circa $3.35m
• Striking modern home, 4-4-2, pool, Camberwell – circa $6.3m
• Double fronted Victorian, 4-2-2, pool, Kew – circa $3.45m
• Two storey period home, 4-3-2, pool, Kew – circa $4m
• Brick 2 storey Californian Bungalow, 4-2-2, pool, Kew – circa $3.15m
• Renovated Victorian, 4-2-2, pool, ~530sqm, Hawthorn East – circa $3.95m
• Victorian dble fronter, architectural extension, 4 bed, pool, Hawthorn East – circa $3.25m
• Single fronter, 2-1-1, ~340sqm, north rear, Hawthorn East – circa $1.85m
• Family home w pool, 4-2-2, ~630sqm, east rear, Glen Iris – circa $2.4m
• Near new contemporary home, 4-2-2, pool, ~800sqm, Glen Iris – circa $5m
• Renovated period 4-2-2, ~630sqm, south rear, Surrey Hills – circa $2.3m
• Two storey contemporary, 4-2-2, ~650sqm, Balwyn – circa $3.15m
• Victorian single fronter, 2 storey, 3-2-1, Carlton North – circa $2.3m
• Freestanding period home, 3-2-1, ~230sqm, corner site, Elwood – circa $1.65m