This weekend Melbourne recorded a clearance rate of 74 per cent, compared to 76 per cent last week. There were 1113 auctions held on the weekend with 819 properties selling and 294 being passed in, 120 of those on a vendor bid. In addition to the auctions, there were 433 private sales reported.

The REIV has reported that September held several auction records compared to the same time last year:

– auction volumes increased by 38 per cent

– property listings increased by 35 per cent

– there were around 10,700 residential sales in Victoria, (an increase of 6 per cent).

– auctions comprised about 30 per cent of sales in September with approximately 4,120 auctions held, and the overall clearance rate was a solid 74 per cent.

This weekend’s results reveal that downsizers are creating a large pool of family homes flooding onto the market this spring, as people in their 50s and 60s are taking advantage of strong price growth for their family homes. This activity has also created a higher demand for single-level compact homes such as villas and period cottages.

The upsizers – families needing to upgrade to a three or four bedroom house, are enjoying the extra choice in available stock made possible by the increased buying and selling by baby boomer property owners.

We are also proud to announce that Kim Easterbrook has been named as a FINALIST in the category of ‘Buyer’s Agent of the Year’ in the REIV 2015 Awards for Excellence. The awards will be held on Thursday 22nd October.

With such a healthy market at the moment, we are looking forward to two consecutive super Saturday weekends scheduled for the coming fortnight.

Auction Results

9 Tahara Road, Toorak. Sold for $4,905,000
Gerald “The Bull” Delany introduced 9 Tahara Court, Toorak to a mixed crowd of developers, home site buyers and onlookers. The tired but expansive 1980’s built home attracted a bevy of well-known and well-heeled Melbourne estate agents, one of whom opened the bidding at $4.1m (Kay and Burton’s quote was $4M+ for the just under 700m2 holding). The bidder didn’t have to wait long to have his bid countered as two, then three further bidders joined the party. The property was on the market at $4.5m and it was on. Aggressive bidding by the first bidder, appearing to have a client on the end of a phone, soon outbid all but one competitor who was not letting go easily. The lady, an Asian woman was almost as aggressive as he was, and her patience and steady bidding soon paid off when he was out at $4.905m. “The Bull”, at his finest, slammed the gavel down and the keys to the single level family home were once again exchanged.

6/50 Leura Grove, Hawthorn East. Passed in at auction.
A small group of around 15 people gathered in the shade of the large trees lining Leura Grove as the auction for the two bedroom top storey apartment went under way. One of only twelve in the development with a lock up garage and views of the city, it was surprising that less people had come to see the action. The auctioneer was met with nothing but silence as he asked for the first bid, eventually placing a vendor bid of $500,000 in the hopes it might entice someone to throw their hat in the ring. After a brief ‘half-time break’, the auctioneer was very pleased to find a bid of $5,000 from a lady avoiding the hot sun. When no one would offer a competing bid, he placed a second vendor bid of $520,000 and passed the property in to the crowd.

24 Union Street, Williamstown. Sold for $870,000
This recently renovated double-fronted Victorian in the historic part of Williamstown has three bedrooms and a freshly modernised bathroom and kitchen. The pre-auction price guide of $780,000+ was an attractive price for two would-be buyers who put their hands up at the auction. An opening bid of $780,000 fuelled the competition, and when the auctioneer asked for a $20,000 rise, he got it. But the power bids between the two parties was short-lived because at $820,000, the increments dropped to $10,000. The auctioneer stepped inside for instructions when the auction stalled at $870,000, and returned to announce the property on the market. No further bids were made, and the hammer was brought down at $870,000.

This weekend Melbourne recorded a clearance rate of 74 per cent, compared to 76% last week. There were 993 auctions held on the weekend with 732 properties selling and 261 being passed in, 111 of those on a vendor bid. In addition to the auctions, there were 370 private sales reported.

The latest ABS data released last  week has revealed that house prices in Melbourne are again on the increase. After it was thought that Melbourne prices had peaked in March 2014, the latest reported quarterly growth of 4.2% in June was the biggest in Melbourne since March 2010.

Furthermore, the ABS has reported that Victoria (and NSW) are both creating more employment opportunities and are subsequently attracting both people migrating from overseas and interstate, which is trending as a shift away from the mining states. With higher population growth comes more demand for housing, which is one of the factors affecting higher property values in Melbourne. 

A new record was reached in Mount Waverley, when a Regent Street property sprawling some 4097 square-metres was sold during post-auction negotiations for approximately $6 million. A developer won the right to negotiate after a bid of $5.55 million did not meet the reserve, and none of the 3 other bidders put their hands up. The new owner is yet to decide on the future of the property.

Next week, due to the AFL Grand Final there are approximately 65 auctions expected.

Auction Results

35 McConnell Street, Kensington. Sold for $1,451,000
This double-fronted re-designed three-bedroom two-bathroom period home immediately appealed, attracting a 70 strong crowd to the auction. An opening bid of $1.2 million was slightly lower than the quoted figure of $1.25 million to $1.3 million prior to auction, but it was enough to enliven the crowd with four bidders stepping in to the ring and pushing the price up to $1.4 million, when it was announced on the market. The first bidder stepped down, and it was the last party who joined the bidding whose strong bidding tactic was persistent enough to walk away with the keys for $1,451,000.

28 Cunningham Street, South Yarra. Sold for $2,230,000
On the market for the first time in half a century, this “diamond in the rough” presented in original condition in a sought after South Yarra location, had a crowd of 70 people attend the auction. The opening bid of $1.5 million started proceedings, and with an onslaught of $50,000 rises it wasn’t long before the property was on the market at $1.9 million, at which time the first bidder dropped out leaving two other parties to continue bidding. The auctioneer was keen to use first names, and he enjoyed the rivalry between bidders Chris and Barry, but it was Barry who bowed out first at $2.22 million, leaving Chris to take ownership for $2.23 million.

129 Park Drive, Parkville. Sold $3,520,000
A prestigious Parkville residence c1879, on two titles featuring a substantial landscaped garden and extra-wide double frontage with rear access, had a price guide of $3 million+. On auction day the opening bid came from a woman offering $2.8 million before the auctioneer had even completed his opening spiel. A man raised her bid by $100,000, spurring the woman to fight back; their bids quickly sailed into the low $3 millions. A third bidder then joined in, but it was the original lady who outshone her rivals and excitedly secured the home at $3.52 million.

As more stock arrives on the Spring market, auction listings are also up by 20 per cent on 2014 figures. This weekend Melbourne recorded a clearance rate of 75 per cent, the same figure achieved last week. There were 1007 auctions held on the weekend with 759 properties selling and 248 being passed in, 92 of those on a vendor bid. In addition to the auctions, there were 380 private sales reported.

In the year to date, there have been 25,800 auctions held in Melbourne – the highest on record for any year. And it is good news for buyers who can enjoy the choice in properties available during the peak season of the year.

Lower clearance rates and a slowing down of price growth indicates that the market has somewhat stepped off the peddle, and vendors will need to readjust their expectations with more realistic prices if they want to sell. 

The higher interest rates for investor loans has had an effect on the market, while opening up the door for owner-occupiers to jump in. Suburbs in the outer Northern and the inner, middle and outer Western areas of Melbourne have seen buyers have a stronger influence on prices.

Auction Results

10 Frampton Street, St Kilda. Sold for $1,610,000
With the original house dating back to 1854, this property has been magnificently transformed into a clever, contemporary 3 bedroom home that reflects today’s modern lifestyles. The auction began with an opening bid from a man for $1.2 million, which was a low start considering the price guide was $1.5 million+. A second and third man stepped in and the price was pushed up to $1.59 million when the auctioneer announced “we are playing for keeps”. It wasn’t long before the truly unique property was sold for $1.61 million to applause from the crowd.

32 Heyington Place, Toorak. Sold for $4,605,000
In a highly sought after location and on an allotment of 708sqm, this four bedroom, two bathroom Georgian home with underground garages attracted around 100 onlookers to view the auction. The property has been with the same family since it was built in 1961, and held a price guide of high $3 millions+. The first bid to be placed at the auction was from a man offering $4 million, and this awakened the crowd as four other bidders emerged. Rises of $50,000 switched to $25,000 and then less, as a woman beat the other hopeful owners, to secure the home at just over $4.6M.

1 Barkly Street, Brunswick East. Sold for $3,400,000
A deceased estate sale of an Edwardian relic that has never been renovated, on a huge 1260 sqm block was the setting for a very popular auction on Saturday. A crowd of nearly 200 people gathered to see if the grand home, Glenvale, would sell for the first time in its 105 year history. It was an attempted knock-out bid of $2 million that began the auction and immediately put the home on the market. Hotly contested between five bidders including the local church and a developer who enjoys heritage property, the latter managed to secure the keys in a result that was beyond expectation to all. 

A clearance rate of 76 per cent was recorded in Melbourne, compared to 77 per cent last week. There were 841 auctions held on the weekend with 643 properties selling and 198 being passed in, 76 of those on a vendor bid. In addition to the auctions, there were 410 private sales reported.

As we step out of the colder months, so too are the buyers ready to welcome quality Melbourne properties onto the market. During the traditionally non-peak winter months, the market was tested with almost 500 extra auctions added, rising to 11,257. An overall winter clearance rate of 77.4 per cent proved that buyers were ready to get a jump-start on Spring.

The REIV have reported that Bentleigh had the highest clearance rate in August (95 per cent), followed by Glen Iris and Caulfield South (both 91 per cent). As September begins to unfold, it will be interesting to see if these hotspots remain, or new ones emerge.

More than 3,600 auctions are expected this September, which is a much higher number than the figures from the same month last year. This early-Spring market is showing signs of offering some great quality stock, with a range of big period homes in some of the best streets, arriving on the market. 

We are looking forward to next weekend with an expected 1000+ auctions scheduled.

Auction Results

64 Dickens Street, Elwood. Sold for $1,372,000
This three bedroom “renovators delight” is located just a short walk from the beach and amenities, suffering from “worst house on the best street syndrome” as the auctioneer Tony Pride put it. Despite Tony’s great opening spiel, the audience of around 70 people were reluctant to participate, so a $1.1 million vendor bid was made. The bids started flying from different sections of the street with three bidders pushing the price to $1.24 million when things came to a halt. After a quick half time break and announcement that the property was not on the market, the under-bidders sped off in their Porsche as fresh bids began to fly again with two new bidders. The house was announced on the market at $1.32 million and sold shortly after for $1.372 million.

1 Peacock Street, Brunswick West. Sold for $905,000
On a large corner block, this three-bedroom California bungalow with a quote prior to auction of $840,000+  held appeal for families as well as developers. The auctioneer offered a vendor bid of $780,000 to begin the auction, which prompted three other bidders to make offers before everything slowed to a halt. A second vendor bid of $820,000 tried to stir things up again, but it was very slow going. At $850,000 the auctioneer consulted the vendors, but the property ended up passing in and was later sold for $905,000.

7 Maroona Street, Brighton. Sold for $1,625,000
This charming Californian bungalow that’s been in the one family for 60 years is full of potential, with four bedrooms and two bathrooms. A conservative vendor bid of $1.2 million began the auction, and was quickly responded to with an offer of $1.25 million by a gentleman in the crowd. Another bidder joined in with a $25,000 rise, but did not last long and dropped out after only a few bids. Two other parties stepped in and put up a good fight until one of them bowed out $4000 short of the final bid. The new owners of the home ended up paying $265,000 above the reserve to secure their piece of Brighton real estate.

A clearance rate of 78 per cent was recorded in Melbourne, compared to 73 per cent last week. There were 950 auctions held on the weekend with 741 properties selling and 209 being passed in, 89 of those on a vendor bid. In addition to the auctions, there were 371 private sales reported.

Conditions have been looking good for buyers as we head into spring – with low interest rates and more stock arriving on the market, there should be some great results in the coming weeks. In comparison to the volatile share market of late, property is being seen as a more stable option for investors.

The market is heading into a string of 1000+ auction Saturdays, and there will even be multiple weekends between September and December that host over 1500 auctions.

Winter listings have been up by 20 percent on 2014 figures. The opening weekend of the spring selling season will see over 850 properties go under the hammer next week.

Auction Results

86 Morris Street, Williamstown. Sold for $1,803,000
A well located home with views over parkland and the bay, and with a price guide of $1.4 million+. This three bedroom, two bathroom home was the scene of a heated auction on Saturday. An opening offer from one woman of $1.3 million began proceedings, and was met by a counter offer of $1.35 million. The two bidders locked horns and continued with rises of $50,000 until the price reached $1.62 million, when the property was announced on the market. The second bidder reluctantly bowed out at $1,802,000 allowing the first bidder to claim the views for only $1,000 more.

21 Joy Street, South Yarra. Sold for $1,303,000
An inspired and innovative conversion of an original c1900s stable, this sensational warehouse style residence with off street parking proved to be a popular choice as the crowd gathered awaiting the auctions start. At least six people from the audience wanted to get their hands on the property, which is on the verge of Hawksburn Village. A vendor bid of $850,000 immediately warmed the crowd up with the home reaching $1 million after only four bids. One man practised his golf swings as he called out more than 30 offers. But it was another super keen bidder equipped with his cheque book who was prepared to pay more than $300,000 above the reserve for this one bedroom warehouse-style house.

86 Malin Street, Kew. Sold for $3,225,000
This renovated Edwardian’s superb combination of charming period grace and stylish modern functionality is found on a deep and wide allotment of 836 sqm. A well landscaped block situated close to Kew’s private schools and shops was unsurprisingly over-run with families inspecting the three-bedroom home. A vendor bid of $2.4 million kicked off the auction in front of a crowd of over 90 people. One man jumped straight in with a $50,000 rise before a second vendor bid was made. Despite three other buyers attempting to win the home, the first bidder held strong and secured the keys at $3,225,000.

Have you noticed more “for sale” or “forthcoming auction” signs going up around Melbourne last week? That’s no surprise, as the listings are readying for a very busy spring selling season. A clearance rate of 74 per cent was recorded in Melbourne, compared to 76 per cent last week. There were 770 auctions held on the weekend with 569 properties selling and 201 being passed in, 80 of those on a vendor bid. In addition to the auctions, there were 414 private sales reported.

Last week’s auction results saw Melbourne beat Sydney’s clearance rate for the first time since May 2013. As Melbourne emerges from the winter period, buyer demand will be put to the test.

Next week there are more than 1000 auctions scheduled. This makes a new record, as this is the first time that more than 4000 homes are going under the hammer in Melbourne in the month of August.

Auction Results

98 Beach Street, Port Melbourne. Sold for $2,198,000
The idyllic lifestyle offered by close proximity to the beach and cafes of Port Melbourne wasn’t the only thing attracting a crowd to this property on Saturday. The vendor’s of this property were champion jockey Damien Oliver and Fiorente’s part-owner John Bongiorno. The opening offer of $1.85 million was made by a downsizer, who soon dropped out when a couple and young family stepped into the ring. After a slow auction and a close finish, the young family walked away with the keys for $2,198,000.

31 Johnson Street, Northcote. Sold for $1,070,000
Two bedrooms and one bathroom in a prime location near High street, trains, trams and leafy parkland, this renovated Edwardian held lots of appeal. A genuine bid of $800,000 kick-started the auction and ignited some serious competition between two would-be buyers. The price quoted prior to auction was $900,000+, and it was eventually announced on the market at $950,000 before a late-comer took the title of “new owner” after making only a couple of bids. The property sold for $1.07 million.

104 Little Charles Street, Abbotsford. Sold for $762,000
Generous sized rooms combined with an abundance of natural light work harmoniously to create this cutting edge New York style oasis. The idea of living on the city’s doorstep in a relatively new property with a quoted price of $650,000+ attracted quite a crowd to the auction. Despite the appeal, the auction started very slowly as a young woman on the phone put her hand up and offered $650,000 before three more bidders joined in. When the price reached $750,000 the auctioneer received instructions from the vendor and announced the property was “selling”. At that point a fifth bidder jumped in, and eventually took the keys at $762,000.

Another steady result in auctions this weekend with a clearance rate of 77 per cent, the same as last week. There were 735 auctions held on the weekend with 567 properties selling and 168 being passed in, 71 of those on a vendor bid. In addition to the auctions, there were 353 private sales reported.

There have been 22,000 auctions held so far this year, a number which is 14 per cent up from 2014. With this in mind, August is tipped to be a record month for Melbourne. Next weekend there are over 800 auctions expected, while the final weekend of winter has over 1000 auctions scheduled.

The current market in Melbourne has been tracking at around 30 per cent private sales, showing how effective auctions are for producing strong results. The results can be seen especially in the million dollar-plus market, where there has been a 60 per cent increase in seven-figure sales compared to the same time last year.

The scene is getting set for a very active spring market!

Auction Results

45 Flowerdale Road, Glen Iris. Passed in at Auction
Over 60 people squeezed into the back yard of this four bedroom home encompassing over 1100 square metres. Many were sunning themselves in the Northern light overlooking the tennis court at the rear of the property, which backs onto the Hill ‘n’ Dale park and bike track. The house itself was somewhat dated but no doubt was utterly luxurious in the ’90s. The excitement of the auction peaked unfortunately early with a dog on the loose shortly before the auctioneer placed a Vendor bid of $2.5 million to begin, looking for a real rise of $50K. After a brief halftime break, one gentleman finally raised his hand to bring the property to $2.55 million – and to bring the exclusive right of negotiation to himself with the property then passing in with no further bids.

311 Nott Street, Port Melbourne. Sold for $1,475,000
Historically, this free-standing 2-storey brick home only had one bedroom, but a separate rear building has been added, which includes two more bedrooms and a contemporary feel. A crowd of more than 80 people gathered for the auction of this property, quoted prior to auction at $1.1 million+ and witnessed an opening bid of $1.2 million. It did not take long with three parties and seven more bids bringing the price up to $1.3 million. Another two bidders joined in to see the price escalate to $1.41 million where it was announced on the market, and it only took another eight bids for the property to sell to one of the fresh bidders for $1,475,000.

48 Pleasant Road, Hawthorn East. Sold for $2,301,000
About 100 spilled out onto Pleasant Road (ironically dubbed Unpleasant Road by its residents due to the masses of cars using it as a cut through on a daily basis) to see auctioneer Antony Woodley spruik the benefits of the updated and extended 1920’s home.

Opening on a vendor bid of $1.95 million, Woodley called for bids which he found in the form of 3 eager would be buyers. The property was on the market at $2.2 million after Woodley sought instructions from his vendors and the competition heated up from there. One bidder soon dropped out leaving two young families to fight it out for the keys to the door. After almost knocking it down 3 or 4 times, the hammer eventually fell to the family with 2 small children for a tidy sum of $2.301 million.

The 8th of the 8th was certainly a busy day for auctions in Melbourne, and the result for the weekend was a clearance rate of 79 per cent, compared to 77 per cent last week. There were 872 auctions held on the weekend with 689 properties selling and 183 being passed in, 87 of those on a vendor bid. In addition to the auctions, there were 369 private sales reported.

This weekend was the biggest auction day in August that Melbourne has ever seen – all spurred on by the lucky number 8. Many Chinese view transacting on the eighth day of the eighth month as lucky. Auction numbers were up 51 per cent compared to the same weekend last year.

Luxury real estate in Melbourne is still running hot, with results showing that Melbourne’s top tier properties gained a 7.9 per cent growth in value in the year to June 30, placing Melbourne in the top ten cities with the most growth in luxury properties worldwide.

While this weekend saw an unusually large number of properties go under the hammer, many buyers are still waiting for the A-grade properties to hit the market in Spring. 

Next week, there are over 750 auctions scheduled across Melbourne.

Auction Results

888 Riversdale Road, Camberwell. Sold for $1,440,000
In Chinese culture the number 8 signifies luck, so there was little surprise at the turnout of over 100 people (and two news crews) to 888 Riversdale Road on the 8/8/2015(2+0+1+5 = 8). With 3 bedrooms this 1940s red clinker brick home had no doubt seen better days and is in dire need of a renovation, or potentially a new home to be built on the 631 square metres of land. Quoting at $1.1 million+ prior to auction, the bidding was kicked off by a gentleman hiding in the crowd offering a $900,000 bid. The price quickly increased with $25,000 rises to over $1.1 million. At the half-time break, the property was still not on the market at $1.17 million. As the price climbed, more people seemed to be itching to get a bid in with one unlucky punter only making one bid of $1.43 million and missing out on the home which eventually sold to a developer for $1.44 million.

37 Mont Albert Road, Canterbury. Sold for $2,526,000
A 200 strong crowd of Chinese Australians and their families took over the footpath and road to watch auctioneer Alastair Craig of Jellis Craig sell a magnificent renovated 1920’s brick home on the corner of Mont Albert Road and Barnsbury Road in Canterbury. Amongst the 50 plus bids taken by Craig, at least 10 of them contained the lucky number 8, in various numerical order, but none won any of the eager bidders the keys to the door. As bids drew out to $1000 offerings (about 30 of them!), buyers were noisily on the phone taking instructions from whoever held the purse strings in their camp, hoping for another couple of grand to seal the deal. After much coaxing from one of the many Jellis Craig consultants who were there aiding the 5 or so bidders who came to secure their piece of the Golden Mile, it was a lady in her mid-50’s who, after nearly 45 minutes, eventually won the keys to the property for $2.526 million, almost $200k over the reserve.

1/45 Foam Street, Elwood. Sold for $575,000
Quoted at $400,000 plus, the auction started very slow with all attendees sitting on their hands not wanting to be the first one to bid. The Agent ended up opening the auction on a vendor bid of $430,000 to try and stir on some audience participation from the 80 strong crowd. After a few minutes, an offer of $440,000 shook the audience awake, as it spurred on some competition between two bidders who tangoed up to $480,000 when the second bidder dropped out. A very keen third bidder stepped up to challenge the first bidder and the two went head to head until the third party was outbid at $495,000. Two more bidders attempted to stop the motivated buyer but to no avail. The young man (potentially a first home buyer) purchased the property for $575,000 and bought himself a great apartment in an excellent location.

The first August results for 2015 saw a slightly higher clearance rate of 79 per cent, compared to 76 per cent last week. There were 595 auctions held on the weekend with 467 properties selling and 128 being passed in, 61 of those on a vendor bid. In addition to the auctions, there were 434 private sales reported.

The lead-up to Spring is seeing an increase in the volume of auction listings, with opportunity for uninterrupted four-week campaigns thanks to an October AFL Grand Final. Higher auction volumes have been trending throughout the winter months, compared to last year, and higher clearance rates have also been the result.

So far, there are 3,480 auctions already scheduled for August (source REIV) in greater Melbourne, while there was a total of 3,323 auctions held during the month of August 2014. The surge in listings may be due to vendors seeing the market peak in May, thanks to the interest rate cut, prompting them to prepare their home for selling, causing auction numbers to rise after the peak.

With the Reserve Bank meeting on Tuesday, we are not expecting any changes to the cash rate, which is good news for buyers entering the market. A word of caution though, while interest rates are remaining low, buyer’s still need to keep a level head and not over-extend themselves at auction.

Auction Results

36 Henry Street, Prahran. Sold for $1,113,000
This sophisticated Victorian has been thoughtfully renovated to its former glory, adding a beautiful light filled extension, whilst retaining the charm of its original period features. The two-bedroom cottage on the edge of Windsor attracted a crowd of 70 with five bidders amongst them. The opening bid offered by a woman at $800,000 was a healthy start. Bids started flying from four other directions with a variety of rises from $10,000 to $1,000 and $3,000, keeping the auctioneer on his toes. But it was a young couple who made the final bid, with the hammer being brought down at $1,113,000.

15 Fairmount Road, Hawthorn East. Sold for $2,540,000
This solid brick 1920’s home located in a prized tree-lined street, with three bedrooms, plus study with a well-separated teenagers’ retreat, welcomed a 70-strong crowd to the Saturday auction. An opening bid of $1.9 million started proceedings, with two more potential buyers joining in. The price reached $2.45 million when the auctioneer announced the property on the market, and it looked as though the hammer would be brought down, but a latecomer jumped in and within 2 bids, the fourth bidder won the keys at $2.54 million.

26 Austral Avenue, Preston. Sold for $852,000
A crowd of 50 came to see the auction of this four-bedroom property bordering Thornbury and close to Miller St cafes, schools, transport and parks. An opening offer of $720,000 was accepted after a long silence from the crowd, and two more bidders joined in to help the price reach $830,000 when it was “well and truly on the market”. Soon after, one couple dropped out of the battle, leaving two fiesty bidders to argue with each other until the auctioneer eventually asked one of them permission to sell it to the other party, and it was granted. The property sold for $852,000.

This weekend, a clearance rate of 79 per cent was recorded in Melbourne, compared to 75 per cent last week. There were 687 auctions held on the weekend with 542 properties selling and 145 being passed in, 56 of those on a vendor bid. In addition to the auctions, there were 407 private sales reported.

We are now beginning to see a reduction of investors in the market due to the tighter lending restrictions brought about by APRA in early July. It is likely that we won’t see the full effects of this immediately as pre-approved loans may still be available to some investors.  As a result, we may see a slow down in the investor market which could help open the doors again for some owner occupiers and first home buyers.

Winter has caused some areas of Melbourne to have fewer than average listings which is not unexpected and in fact, the usual trend.  As a result of this, and strong prices, we should see an increase in listings coming into the silly Spring season.  This in-turn may stabilise house prices.

Stock listings have already started to rise due to the conclusion of the school holidays with 600 auctions expected for next week.

Auction Results

3/10 Higham Street, Cheltenham. Sold for $545,000
A small crowd of about 40 gathered in freezing conditions to see a smart, renovated villa unit, close to the Charman Road shops go under the hammer. Located at the rear of a boutique block, in a quiet cul de sac, this family friendly home appealed to first home buyers and investors alike. In calling for an opening bid, the auctioneer’s suggestion that we “should all be feeling warm as the market is so hot at the moment”, was met with silence until a vendor bid of $400,000 was made. Slowly the crowd responded with bids in $10k rises from 3 interested parties, until it slowed at $490,000. One of the bidders offered a $5000 rise and that’s where the auction stalled until a fourth bidder offered another $5000 just as the hammer was about to fall. This continued until all 3 bidders were out and the property was knocked down to the fourth bidder for $545,000, $10,000 above the reserve.

1/2 Victoria Street, Elsternwick. Sold for $660,000
This super-sized apartment with striking views from almost every room overlooking the greenery of Hopetoun Gardens, was quoted at $550,000 plus before auction. Amidst all of Elsternwick’s finest restaurants, transport facilities and sought after amenities, this apartment is truly in the heart of it all. Given the size and location, this two bedroom apartment was always going to be highly sought after, and the crowd of 60 people discovered just how tough the competition was at the auction. Four parties attempted to secure the property, with an opening bid of $550,000 being a strong start to the auction. Bidding was competitive from four sides, and the property was announced on the market at $620,000. But it was a gentlemens’ only bid of $660,000 that was enough to secure the property.

15 Marwarra Street, Ringwood East. Sold for $828,000
With a seemingly affordable price range of $540,000+, this three bedroom, one bathroom home in the Ringwood Secondary College catchment. Being on 669 square metres of land, it held wide appeal to investors, developers, renovators and owner occupiers. More than 100 onlookers attended the auction which saw six enthusiastic bidders drive the price up in an attempt to win the keys to this property. It was eventually sold for $828,000, well above the reserve. We are seeing more and more properties selling well in excess of reserve in the outer Eastern suburbs as first home buyers are being pushed further out of their targeted areas.