Hi,
742 auctions were reported to the REIV on the weekend. 433 sold at auction, 142 sold prior to auction and 165 passed in resulting in an improved clearance rate of 78%. There were an additional 149 private sales. In comparison, there were 1,329 auctions held on the same weekend last year producing an 81% clearance rate.
With the clearance rate consistently improving, the media are now reporting more positive stories about the property market than their normal doom and gloom reports. This in turn seems to helping some buyers to make the decision to purchase now. It is still too early to call whether the property market has bottomed out however we do believe there more buying opportunities at the end of last year and each negotiation we are involved with now is met with more competition from other buyers.
Selling agents are reporting healthy numbers through many open for inspections but whilst the clearance rate is looking stronger, there are still buyers sitting on their hands with a wait and see approach. Rising rents are pushing first home buyers into the market and as mentioned last market wrap, some people migrating from overseas are opting to buy rather than rent.
A huge auction in Geelong over the weekend with 19 Layton Crescent, Newtown going under the hammer. A family relocating from Melbourne outbid four other bidders to secure the four bedroom, two bathroom, three car garage home on 973 sqm. It is interesting to note that the property is in need of renovation. The price quoted prior to auction was $1,690,000 to $1,790,000, the property was announced on the market at $1,800,000 and sold for a huge $2,535,000.
26 Westbank Terrace, Richmond was also hotly contested at auction which was brought forward due to an acceptable offer being placed on the property. The updated four bedroom, two bathroom, two carpark home was quoted at $1,400,000 to $1,500,000 prior to auction and had active bidding from four parties (more buyers attended but did not have an opportunity to put their hand up) and the property sold for $170,000 above the acceptable offer for $1,770,000.
The market sentiment appears to be improving but also the lack of stock is also contributing to the higher bidders per property. Unfortunately, there are no signs that the stock levels will improve in the immediate future.
Have a great week.
David Easterbrook
Hi,
The clearance rate dipped slightly over the weekend with 685 auctions reported to the REIV. From 493 properties that sold, 375 sold at auction, 118 before auction and 192 passed in. There were an additional 133 properties that sold via private sale. Volumes are considerably down from last year where for the same weekend in 2022 there were 1,227 auctions producing a clearance rate of 75%.
CoreLogic released data last week that supported the downturn in the property markets across the country is easing with the four week rolling average of property prices showing that they actually marginally increased, Sydney (+0.8%), Melbourne (+0.2%) and Perth (+0.1%). This is largely due to a lack of new listings which CoreLogic reports to be down 19.9% from the previous five-year average for the same time of year.
CoreLogic also reported that overseas migration is rising and is putting pressure on property prices. With vacancy rates so low, people moving into Australia are opting to buy rather than rent. However, there are still some challenges in 2023 for the property market with interest rates predicted to rise another 0.5% to 1% over the course of the year. There is speculation though that the RBA may pause on rising interest rates next month to allow time to see if the interest rate increases have already had some impact on slowing inflation. Will be interesting to see what unfolds.
2/39 Wheeler Street, Ormond went to auction in front of almost 100 people on the weekend. Five bidders participated in the auction with many not even having an opportunity to put their hand up. The two bedroom, two bathroom unit, one of two on the block was quoted $790,000 to $880,000 prior to auction. It sold under the hammer for $1,040,000.
On the other side of town, the auction of a three bedroom home at 111 Greeves Street, Fitzroy was contested by three bidders. The property was quoted $1,550,000 to $1,650,000 prior to auction and sold for $1,724,000 which was $44,000 above the reserve price.
Have a great week.
David Easterbrook
Hi,
The clearance rate over the weekend improved again resulting in solid rate of 76%. There were 608 auctions reported to the REIV of which 337 sold at auction, 123 before auction and 148 passed in. There were an additional 298 private sales which is a high number and demonstrates that many vendors are still choosing to sell by other means than auction.
PropTrack (a company owned by the REA group who run a large valuation platform) released data last week which suggests the rate of property price declines was now minimal and the median house price remained stable in metropolitan Melbourne at $903,000 in January. Regional Victoria’s median house price also fell only marginally and remained stable at $593,000. This supports what we have been seeing on the ground over the past month or so and the improved sentiment that we have seen so far this year.
There is a sense that some buyers are factoring in interest rate rises into their budgets and just getting on with it. The drop in stock levels has no doubt assisted in keeping the market stable but there are no signs that there will be a flood of properties coming onto the market any time soon, even with many mortgages changing from fixed rate to variable in the near future.
Interestingly PropTrack’s data for the rental market showed that Melbourne’s rent hit a record high in December with the median rent rising 2.3% to $450 which is a 9.8% increase since the start of 2022.
26 Bay Street, Brighton went to auction over the weekend which is a well located, 1,311 sqm block of land with a large unrenovated house on it. The bidding opened at $7,100,000 and the property sold for $7,300,000 with active bidding.
The auction of 23 Malakoff St, Caulfield North attracted a huge crowd on the weekend with the first bid of $3,000,000 putting the house immediately on the market. The renovated four bedroom, two bathroom pretty period home was in high demand and the competitive auction achieved a price of $3,540,000, which was over $540,000 above it’s reserve price.
Have a great week.
David Easterbrook
Hi,
It was the first, high volume auction weekend for 2023 in Melbourne and it seems all signs are indicating that we are in a balanced market. There were 780 auctions resulting in a solid clearance rate of 75%. 452 properties sold at auction, 131 sold before auction and 197 passed in. There were an additional 134 private sales. Auction numbers are down on the same time last year which held 1,342 auctions resulting in a clearance rate of 76%.
As we have been mentioning over the past few weeks, there appears to be a lot of interest in property from buyers. Generally auctions and open for inspections are well attended but over the weekend, we saw many auctions with strong bidding from multiple buyers. It appears that some buyers have factored in future rate rises and are prepared to make compromises to enter the market. These compromises include location, size and condition of the property.
We may have already seen the worst of the property price decline which could possibly have been at the end of 2022. We should know more over the next month or so. Certainly at Elite, we are seeing good level of enquiry from buyers ready to purchase from both owner occupiers (first home buyers, downsizers and upsizers) and investors.
6a Manton Street, Richmond went to auction on the weekend. The property was quoted $1,200,000 to $1,300,000 prior to auction for a three bedroom, two bathroom, double garage attached home in very liveable condition. The property was announced on the market at around $1,550,000 but it is possible the property had met it’s reserve prior to this. The property sold for $2,150,000 which is almost $1,000,000 above the original price quoted.
20 Tarongo Drive, Aspendale is a well presented, three bedroom, two bathroom home which was quoted prior to auction for $1,000,000 to $1,100,000. Four bidders participated in the auction with the property selling for $1,190,000 under the hammer.
Have a great week.
David Easterbrook
Hi,
Melbourne Property Market Update
Auction numbers were higher over the weekend with 557 auctions reported to the REIV, resulting in a clearance rate of 73%. Interestingly to note that the same weekend last year, there were 1,162 auctions resulting in a clearance rate of 80% and it was very much a sellers market, whereas the current results are demonstrating that we are likely to be in a more balanced market (where the clearance rate usually hovers around 70% to 80%). We have less buyers in the market but we also have less properties on the market to purchase. In addition, there were 245 properties sold via private sale.
There were many reports over the weekend of propeties going to auction and selling well above their reserve prices. This is a direct contradiction to current media reports who are renowned for focusing on doom and gloom reporting. We have also noted there appears to be an increase in buyers obtaining financial assistance from parents to get into the property market due to the lack of available rental properties.
The auction of 135 Somerset St, Richmond smashed it’s reserve by over $1,000,000 in front of a huge crowd. The modern four bedroom, three bathroom home was advertised with a price guide of $2,700,000 to $2,900,000 prior to auction. The property sold for $4,200,000 which was well above its $3,050,000 reserve price.
On the other side of town, a four bedroom, one bathroom house at 2 Crawley Street, Reservoir was quoted $1,075,000 – $1,150,000 prior to auction, three active bidders participated and the property sold for $1,315,000 to a young couple attending the auction with their parents.
Vicky Whittaker, Senior Buyer’s Agent from our Geelong office has provided us with an updated on the Geelong property market, please see below.
Have a great week.
David Easterbrook
Geelong Property Market Update
Similar to Melbourne, we are seeing low stock levels in Geelong which is keeping property prices stable. Properties that require renovations are taking longer to sell due to less buyer demand. The ongoing pressure on the build/renovate market, where a lack of materials, alongside rising costs has caused a backlog in build/renovate projects being completed and therefore an inability to secure trades to carry out works. Properties that have had some renovations and are turnkey ready are seemingly still popular.
Open for inspections are well attended overall however, a lot of buyers seem to be very cautious about pulling the trigger and purchasing a property. With this being said, there should be some good opportunities for astute investors and home buyers over the course of 2023.
Geelong is only one hour’s travel by car and not much more by train, close to the beach, and on the doorstep of the Surf Coast and the Great Ocean Road. There has been a trend of Melburnian’s moving to the area of recent times due to it’s cheaper price point to enter into the property market and close proximity to Melbourne’s CBD.
Selling Agents are now opting to sell properties via private sale rather than auction, this is due to many buyers are requesting ‘subject to finance’ clauses on a contract which auction do not allow.
A well presented, four bedroom, two bathroom home at 11A Cambridge Street, Belmont sold on the weekend with four active bidders at auction. The property sold for $888,000 which was $88,000 above reserve.
Vicky Whittaker – Senior Buyer’s Agent (Geelong/Surf Coast/Ballarat)
Hi,
412 auctions were reported to the REIV last weekend resulting in a clearance rate of 71%. 224 properties sold at auction, 68 sold before auction and 120 properties passed in. In addition there were 242 private sales (a strong number), which is very much a reflection of the current market where some vendors are opting to sell their properties via private sale, off market or expressions of interest.
The Reserve Bank of Australia met for the first time for 2023 and raised interest rates by 0.25%. They have also warned there are atleast two more to come but appear to be favouring a slow and steady approach rather than any further large hikes. The current cash rate is 3.35% and they have implied that it could peak at 3.85% or just above. To put things in perspective, these rates are still low. Property owners have been very fortunate for the past 10 years to have experienced record low interest rates.
It is predicted that upto 800,000 mortgages will come off lower fixed term rates onto higher variable rates this year. Will this see a flood of properties coming onto the market? There is no doubt there will be some casualties from interest rates rising but one could argue that some of these owners have already put their properties on the market and sold. Many will try and maintain their home and/or investment property(ies) and some will do so by cutting back on non-essential purchases and reducing their spending budgets. However, if someone was in real financial stress, one would think their exit plan would already be in play. Stock levels are currently very low and we believe this will continue to be the case. Many property owners (and buyers for that matter) will stay in a holding pattern until the peak of the interest rate rises arrives.
Overall, there is still a level of uncertainty in the property market, buyers are cautious, BUT we again saw high numbers of people at open for inspections and some big crowds at auctions. 71% clearance rate is an improvement of last years clearance rate but this is being held up by low stock numbers. We feel buyers are circling, sussing out the market, doing their research, and some are likely waiting for the peak of interest rates to come. Some buyers however have factored these interest rates into their budget and taking advantage of the buying conditions where currently there are less buyers in the market.
1/2a Tiuna Grove, Elwood went under the hammer on over the weekend which is a well located 2 bedroom, 2 bathroom, 1 carpark apartment attracted downsizers bidding at auction. The property was quoted $1,000,000 to $1,100,000 prior to auction and sold well above its reserve at $1,165,000. The property last sold in 2019 for $1,000,000.
119 Hotham Street, Collingwood also went to auction and is a fully renovated, 3 bedroom, 2 bathroom single fronted home with no carparking. The property was quoted at $1,410,000 to $1,550,000 prior to auction and sold for $1,820,000.
Have a great week.
David Easterbrook
Hi,
The time of year has come again for many of us to take a break and recharge the batteries for another year. 2022 has thrown some unusual challenges at us but also some welcomed freedom which we missed in the previous two years.
We wish you all the best for a Happy Holiday season and here’s to a safe and prosperous 2023.
Kind Regards,
David and Kim Easterbrook and the team at Elite Buyer Agents and Elite Property Rentals
Hi,
There were 622 auctions reported to the REIV over the weekend resulting in a clearance rate of 67%. 311 sold at auction, 104 sold before auction, 1 sold after auction and 206 passed in. There were an additional 188 private sales.
Last week was the final week of 2022 where auction campaigns would be released for the year (except for the occasional short campaign that may go online between now and Christmas). Surprisingly, the amount of new listings was very low in comparison to the last minute flurry of properties that come onto the market in a normal Spring market.
Agents who have listed properties for next year, are using the next four weeks to attempt to sell some of these off market and we are already seeing an increase in off market properties and activity in our office. Many vendors who have failed to sell their properties over the past few weeks will become increasingly motivated to sell by Christmas Day as many want to have the sale done and dusted before the holiday season. This is usually a great time of the year to buy and this year won’t be any different, albiet, the available stock on the market is lower than a normal Spring season.
This is the last market wrap for the year and this year certainly has been an interesting one to work in. The end of lockdowns, spread of Covid-19, rising interest rates, rising cost of living, floods, war in Ukraine and rising inflation all being thrown at us in 2022. Although I am sure 2023 will bring its own challenges, lets hope we see some relief from the challenges we experienced in 2022. Mostly, those trying to enter the property market and those with mortgages will be hoping for a stabilisation of interest rate rises which appears to be on the cards. If this happens, we could be in for a very active property market in 2023.
I hope you all have a very enjoyable holiday season, stay safe and Happy New Year.
Kim Easterbrook
Hi,
Auction numbers were down this past weekend and so too was the clearance rate. 661 auctions were reported to the REIV resulting in a clearance rate of 65%. 325 sold at auction, 103 before auction but it must be noted that the number of private sales for the week were high at 362. Over double what they were last week.
Moving closer to Christmas, most of the auctions campaigns remaining for the year will be launched this week and then the odd private sale campaign coming thereafter. As mentioned in previous weeks, we are coming into a time where there were more off market transactions happening and we are beginning to see them trickle through to our office.
The clearance rate dropped to its lowest it has been for quite some time meaning either two things, that buyers weren’t prepared to transact on the properties that were on offer at auction (either not suitable or not confident enough to purchase) or the vendor wasn’t willing to drop their price to sell. The number of private sales for the week was high sitting at 362, however probably not too unusual for this time of year.
Over the next few weeks, leading up until Christmas I believe the buying conditions may be as good as they will be for quite some time. Buyer confidence is down, vendors will be motivated to sell before the end of year, and with interest rate rises slowing down and potentially stabilising in the New Year, now might be as good as time as any to buy. Our enquiry from investors has increased and usually it is the savvy investors who reap the rewards when buying in a downturn.
The auction of 15b Service Street, Hampton attracted a very large crowd and the bidding was quick to start for the well located, updated, three bedroom, two bathroom, two car (one car garage) townhouse which is located at the rear of three. The property was quoted $1,350,000 to $1,450,000 prior to auction and quickly took off where it was announced on the market at $1,500,000. A downsizer ended up securing the property for $1,660,000 at an auction that attracted five bidders in total.
59 Poolman Street, Port Melbourne went to auction over the weekend and is a great example of what is happening with unrenovated properties in the current market. The unrenovated four bedroom, two bathroom, three car ‘Bank House’ failed to attract a bid at auction. Many buyers are nervous about the cost of renovating and this is presenting opportunities for buyers who are willing to ‘get their hands dirty’. The property sold after auction for an undisclosed amount, which is a very common occurrence in the current market.
Have a great week.
Kim Easterbrook
Hi ,
Auction numbers are down considerably in comparison to last year with 656 auctions were reported to the REIV on the weekend (same time last year was 1,296 however we just came out of a long lockdown), 329 sold at auction, 119 sold before auction, 1 after auction and there were an additional 175 private sales.
As the weeks get close to Christmas, it appears to be becoming less likely there will be a late run of properties or even buyers coming into the market. The feeling around the city is that Christmas has already begun. Christmas trees are up, some parties are happening, shops are filled with Christmas items for sale, Santa has even arrived at the shopping centres for photos. This is unusually early to previous years.
As a result, I feel that the window for buying property this year is going to cease a little earlier than anticipated (although there will no doubt be quiet/off market transactions happening right up until Christmas Eve). Stock levels will likely remain low and there will be some very motivated vendors who are wanting to sell their properties before Christmas. On the flip side to this though, it doesn’t appear that there will be a huge amount of vendors rushing to put their properties on their market early next year either. So we could be in for a bit of slow start unless the RBA pauses interest rate rises, which appears to be on the horizon. This could stir up activity from both buyers and sellers.
On the ground, auctions were patchy with some properties selling under the hammer with multiple bidders, some properties selling immediately after passing in to one bidder and others passing in and going back on to the market as private sale. Runaway results are few and far between. There is still a willingness from buyers to transact but some are waiting until vendor’s expectations come down to a price they are willing to pay.
159 Park Drive, Parkville went under the hammer with auction participation from three bidders. The stunning terrace home which had been restored keeping many period features and blending with some modern touches was sought after but secured by a downsizer couple. The property was quoted $3,000,000 to $3,300,000 prior to auction and sold under the hammer for $3,535,000.
Have a great week.
Kim Easterbrook
