Elite’s Weekly Market Wrap
24th February 2019
816 auctions were held on the weekend which was the first real test for the Melbourne Property Market. Of those, 345 sold at auction, 88 before auction and 383 passed in with 201 passing in on a vendor bid. In addition, there were 149 sales.
I was disappointed to see another sensationalist headline in the media last week that “Sydney and Melbourne property prices could fall by half, in what one economist is warning will be a ‘property ‘bloodbath'”. Even David Koch from Sunrise challenged this report by questioning why this particular ‘expert’ could possibly make these predictions with interest rates so low, population growth steady, unemployment low and a stable economy. I invite these scaremongering ‘experts’ to come and join us on the ground and see for themselves what is actually happening.
This week we saw some hugely competitive auctions and lots of buyers confidently bidding in the market place. The first auction we attended was Friday night when an ‘acceptable offer’ was received on a family home in Sandringham. You usually might see two or three parties attending a boardroom auction but when I arrived to the agencies boardroom there were 8 parties challenging the offer. The property sold competitively for over $200,000 over reserve.
On Saturday, we attended five auctions with four out of the five auctions selling under the hammer, with the property that didn’t sell having multiple bidders and passing in due to a vendor’s high reserve. Some examples being a single fronted home in Windsor attracting five bidders, quoted for $1,050,000 to $1,150,000 prior to auction selling for $1,277,000. A family home in Bentleigh announced on the market at $1,770,000 and selling for $1,906,000 and an apartment in Caulfield attracting four bidders and selling for $65,000 over reserve.
There is no doubt there is still caution with some buyers in the property market, however it seems that many buyers are just getting on with it. We have seen this since the second week of January. Its time the media spoke to the real people who are working on the ground being selling agents and buying agents. Or even better, I recommend journalists go out and attend some auctions and open for inspections and then report on what is really happening in the Melbourne Real Estate Market.
Have a wonderful week!
Kim Easterbrook and the team at Elite!
37 Eastbourne Street, Windsor Sold for $1,277,000
A large crowd attended the auction of 37 Eastbourne St, Windsor, popular not only due to the location but also its updated floorplan and side driveway. The property was quoted at $1,050,000 – $1,150,000 prior to auction. The auction was slow to start, as many auctions are these days however it gained momentum and five bidders participated to try and secure the property. The property sold under the hammer for $1,277,000.
68 Robert Street, Bentleigh Sold for $1,906,000
50 onlookers attended the auction of this 4 bedroom, 2 bathroom family home well located in Bentleigh. A genuine bidder opened the bidding at $1,600,000 and $50,000 rises were accepted by the auctioneer where a third bidder participated at $1,700,000. The property was announced on the market at $1,770,000 and bidding continued strongly with a buyers advocate taking home the keys for his client for $1,906,000.
12/3-25 Hanover Street, Fitzroy Sold for $727,000
Another large crowd of over 100 attended the auction of the deceased estate sale. The two bedroom, one bathroom, unrenovated top floor apartment was quoted $590,000 to $640,000 prior to auction. More than 30 contracts requests demonstrated this was going to be a contested auction. Six bidders in total tried to secure the apartment which was announced on the market at $620,000. The property sold for $727,000 a huge $107,000 over reserve.
23rd – 24th February 2019
This week: 816 Auctions
Last Year: 70% [source: REIV]