28 July 2018
What should we expect for the back half of 2018?
The internet sites are full of stock for sale but much of it is old stock that has been relabelled (new agency) and repackaged (new advertising). Without a price reduction, we fear the stock will continue to grow.
The market has changed (we think to a more balanced one) and, unless the home is an ‘A’ grader, for the first time in a while vendors are needing to make some changes if they want a successful outcome.
Agent choice is likely to become more important for vendors. Unlike 2017, when most of the feedback was positive, sellers need to be prepared and willing to listen and work with their agent to achieve their sale.
One of the biggest changes we have seen this year is the reduction in auction campaigns. They have been replaced with EOI (expression of interest) campaigns and private sales.
The list of ‘off market’ homes (those without paid advertising) is growing at a staggering rate.
For many of these, vendor asking prices can be above 10% more than the highest prices achieved last year, which makes us wonder whether they are really for sale at all. Inexperienced buyers could waste a lot of time pursuing something that isn’t even for sale, or worse, overspend on a property worth a lot less. Knowing how to tell is the key.
Of the homes we have purchased for clients this year, only 53% have been bought at auction and more than 35% of those were pass-ins (most with multiple bidders).
33% have been off market, 7% before auction and 7% advertised private sale.
Having a tool kit of strategies, or an experienced buyer advocate, will help ensure you are equipped to navigate the different sale methods, no matter which method presents.
Some of the better properties scheduled for auctions on 11 August 2018: an architect’s view
8 Moorhouse Street Armadale – Carla Fetter/Andrew McCann, Jellis Craig
10 Leslie Street Hawthorn – Rebecca Scanlon/Campbell Ward, Jellis Craig
50 Lucas Street Brighton East – Barb Gregory/Alyce Fleming, Marshall White
67 Northcote Road Armadale – Sally O’Connell/Fraser Cahill, Marshall White
29 Tennyson St Sandringham
29 Tennyson Street Sandringham sits high on the hill, offering bay views from the upper storey. The Federation home has retained its period features, in combination with a sympathetic extension at the rear, done some years ago. The home offers plenty of spaces for a family (including a studio at the rear) in a prime Sandringham location close to the beach, shops and the train. Naturally, this drew quite a crowd to watch proceedings at the Buxton auction, led by Peter Hickey. Peter called for opening bids of $2.9m, which were not forthcoming. He eventually placed a vendor bid of $2.8m to get the ball rolling. Again the audience remained quiet, forcing Peter to place a final vendor bid of $2.9m before passing the property in. Discussions immediately commenced with a number of parties who expressed interest after the pass-in call. The home was sold shortly after for $3.05m.