22 June 2019
We have seen a steady rise in auction clearance rates in May and June. Low stock levels, the election result certainty and the more recent interest rate reduction has installed some confidence back into Melbourne buyers.
Buyers also seem to be more prepared when it comes to finance. They have factored in the length of time it takes to secure finance approval and they are now ready to bid when the right home comes along.
Staying on top of finance is probably still the most important thing a buyer can do for themselves at the moment. It is worth keeping in mind the renewal dates for finance, particularly when negotiating long settlements, so you don’t get caught out if the market or your financial situation changes.
Many vendors have also had the luxury of selling in isolation (ie without similar homes competing for the same buyers), which has resulted in some solid results and healthy bidding at auction.
With so many varying results, many buyers are becoming confused again by property quotes. Many buyers are finding it hard to understand why some homes sell within their quoted range, others sell for 10 or 20 per cent (plus) more and some don’t even get a bid. Knowing this information before the auction has enabled our clients to make good decisions about the properties they wish to purchase and the price they are prepared to pay.
There are sectors of the Melbourne market, however, where low volume isn’t a concern. Apartments and townhouses (including off the plan) dominate the property sites on the net, providing plenty of choice if these are on the shopping list.
Slowly, the old stock, some of it hanging around since last year, is now getting mopped up as property-starved buyers troll through the limited listings.
Over the next fortnight, many agents will be heading away for holidays. Sentiment among the agents has been buoyed by increased buyer interest; however, many have said they don’t have the same number of homes starting campaigns upon their return as they have had in previous years. At this stage, September looks like it is going to be a bigger month than August, with talk of a late Spring run through to Christmas.
15 Berwick Street Brighton (J Clarkson/S Whiting, Buxton)
Approx. 447sqm with dual street frontage and a well maintained original ’80s home, very conveniently located to Bay Street shops, beach, schools and transport. Opened with a genuine bid of $1.6 million, followed by a vendor bid of $1,625,000. Slowly other bidders raised their hands, six in total. On the market at $1.8 million, it eventually sold for $2,118,000 or $4,738sqm.
4/120 Queens Parade Fitzroy North (J Pillisner/S Kyle, Nelson Alexander)
A generous sized, 3 bedroom, 2 bathroom warehouse conversion on the fringe of the city. Opened at $1.2 million, on the market for $1,210,000 and sold, also with six bidders, for $1,575,000.