Archive for March 2026

The past few weeks since our last blog has seen one of the quickest turnarounds in the market since the Covid market and buyers now feel they are comfortably back in control.

Many agents, particularly this week, have started using the phrase ‘It feels like Covid version 2.0’, after experiencing a major change in both buyer and seller sentiment.

The reasons for this are self-evident.

While in recent times auction clearance rates have been quite normal (i.e. around the 65-75 per cent mark) last week saw a dip to around 60 per cent – a number we haven’t seen since 2022.

Stock levels also were up about 40 per cent from this time last year.

This does not bode well for sellers, but, on the flipside, it is favourable for buyers.

Each weekend, Melbourne property specialists at WoledgeHatt monitor auctions across Melbourne for properties above $1.5 million. The number of houses being auctioned has been steady but what is changing is an increase in the number of properties withdrawn from auction and converted to private sales. Agent quotes are changing quite a bit during the selling campaign and the number of properties selling above the end-quoted range is lessening. Rather than ‘underquoting’, we are more often seeing a trend to ‘over-quote’.

With the auction system faltering, many agents are favouring private sale or EOI campaigns instead of auctions, where it is much easier to hide a high vendor, and/or lack of competition.

The number of ‘off market’ properties remains solid; however, most of these are quite heavily overpriced, with vendors just testing the market and occasionally one or two getting ‘lucky’ with a buyer who pays the price.

The genuine sellers in this group eventually opt for a public campaign if their goal is to actually sell the property.  It can often still get the best price for the vendor.

In times of uncertainty, we believe it is even more important for vendors to consider who they choose to sell their (often) most valuable asset.

Experience counts.

Experienced agents give credibility to the property they are selling. Experienced agents have regular training (often outsourced by professional sales experts). Experienced agents collaborate with fellow workers and have good systems. It surprises us that we frequently see a house for sale with an agent or agency who has almost never worked in the area, and therefore has less understanding of the precinct and location nuances, and less involvement with the buyers in that area. As a result, they usually don’t have a database of passive buyers, who don’t check real estate websites each week but may buy if the ‘right’ home is brought to them.

We feel that buyers think the control in the process has now flipped more into their favour.  Control doesn’t always equate to good decisions. Just because a property may now be bought more cheaply than previous purchased or recently advertised, it doesn’t automatically make it the right property or a good property to purchase.

Just as we think that it is more prudent for sellers to use local, experienced agents skilled at selling their type of property, we believe engaging the skills of an experienced buyer advocate will help buyers work through the increased stock levels and varying quality of homes for sale. You need to trust your emotions when buying a home to live in – you have to like what you’re buying. But what you don’t want to do is make an emotional decision (i.e pay too much, buy the wrong property just because it feels like a bargain etc.).

Many buyers who did buy emotionally during recent Covid times (2020-2021) and have had to sell the home in the past year or so have suffered badly, rarely recouping transaction costs (i.e. around 5-7 per cent of the purchase price, which is considerable) and often lucky to get the new buyer to pay what they did originally.

For now, the ‘public auction’ market will take a pause during Easter, school holidays and the Anzac Day weekend. The next key auction weekends will present in May and the run-up to King’s Birthday weekend. That should provide the next litmus test as to how the market is tracking. Finding the right home and understanding price/value will perhaps be the biggest challenges for buyers. If sellers have a good product and don’t need to sell it, they may decide not to in times such as these.

If you’re looking to navigate these changing conditions with confidence, it’s worth speaking to an experienced buyer advocate to discuss your property goals and make informed decisions in a shifting market.

 

Some of the better properties currently on the market; an architect’s view

6 Foote Street Brighton – Sarah Korbel/Joel Fredman, Fredman

5 Bell Street Hawthorn – Elsa Liu / Richard Winneke, Jellis Craig

6a Kendall Avenue Elwood – Sam Gamon/Rhianna Hoyle, Jellis Craig

 

‘Off-market’ Properties:

• Renovated single level period home, 4-2.5-2, pool, Brighton – circa $4.8m
• Single level 4-2-3, corner block, ~780sqm, Black Rock – circa $2.6m
• Period semi attached in Golden Mile, 3-2-3, Nth rear, Brighton – circa $3.9m
• Freestanding TH, 3-2-2, Brighton East – circa $2.35m
• Modern 4-3-2, pool, park access, Brighton East – circa $3.7m
• Large 4-2.5-2, 3 living, pool, McKinnon Sec. zone, Bentleigh East – circa $3.15m
• Updated, brick single fronter, 2-1-0, South Melbourne – circa $1.1m
• Contemporary TH in small group, 3-3-2, downstairs bed, Armadale – circa $2.3m
• Brick Edwardian, 3-1-3, ~410sqm Nth rear, Prahran – circa $2.35m
• 1960s architectural brick 4-2-2, Nth rear, South Yarra – circa $3.1m
• Solid brick 2-1-1, looking for updates, ~610sqm, Kew – circa $2.3m
• Original period home, 3-1-2, ~540sqm, Kew – circa $2.5m
• Timber Period 3-2-2, 2-storey, quiet street, good north light, Kew – circa $3m
• Near new 5-5-3, 2-storey home, ~830sqm, Camberwell – circa $3.15m
• Brick 1920s 5-3-2, pool, ~1000sqm, Camberwell – circa $3.8m
• Family sized TH 4-3-2, ~400sqm, Balwyn North – circa $2.62m
• 2-storey period home, 4-2-2, ~620sqm, Nth rear, Glen Iris – circa $2.75m
• Single fronter looking for reno, 2-1-1, Richmond – circa $1.3m

  

Auction Spotlight:

5 Thomas Street Hampton

Quoted $2.2-2.4m

Started $2.2m (vendor bid)

Ended $2.5m

Bidders 2

The brick period home positioned within strolling distance to Hampton Street shops, cafes and transport, offers a flexible three-to-five-bedroom options, as well as 3.5 bathrooms, plus a garage and off-street parking. With rain threatening, the 25 plus crowd spread around the northern rear garden, ready to jump inside if need be.  Angus Graham, heading up the Hodges team, started proceedings with a vendor bid of $2.2m, at the bottom of the quoted range of $2.2-2.4m throughout the campaign. Two parties swiftly brought the property on the market at $2.4m, continuing with $25,000 rises.  The second party eventually secured the home for $2.5m.  No doubt both parties relieved to achieve their desired result in a hit and miss market.

 

8 Henrietta Street Hawthorn

Quoted $3.2-3.5m

Started $3.2m ended, pass-in (sold after for around $3.63-3.69m)

Bidders 2

A very pretty single level brick Victorian home in a convenient Hawthorn location.

In front of about 25 people, Auctioneer Davide Lettieri accepted a $3.2m starting bid from bidder one, then not long after bidder came in with a $50K increase. After the half-time break was taken at $3.35m, some more bidding followed and the property duly passed in at $3.45m to bidder two, who apparently turned up on the day undertaking minimal due diligence, saw the quote and assumed they needed to pay a bit over the top of it.

In a market of limited options, this property stood out as good option to move in to straight away. The big knock on it was the shopping centre carpark next door, and that did have an impact on interest levels and the price of course. The quote we and others felt was a bit ambitious, but the vendor got a bit lucky and sold very well in a market that is tough right now for sellers.

 

3-6 Findon Crescent Kew

Quoted $2.2-2.4m

Started $2.2m (vendor bid)

Ended $2.55m

Bidders 2

As the rain tumbled down and there was chill in the air, the auction was held inside. Good thing the hydronic heating had recently been installed and was working beautifully as expected. Auctioneer Steven James as always conducted a very professional auction; starting on time, announcing the property on the market at a proper level and communicating clearly. Staring on vendor bid of $2m, two bidders joined in, the property was on the market at $2.4m and then sold for $2.55m. This is the type of property that is still going quite well right now, and probably always will. It attracts downsizers and also those looking for a lock-and leave option. In addition, developers rarely build this type of thing anymore – as to why, we continue to shake our heads. Single level, good location, easy to live in, light and bright, good security, minimal body corporate, etc. Good auction and great result for buyer and seller alike.