Elite’s Weekly Market Wrap
With measures around the world to control the spread of Covid-19 changing with what feels like every hour, it is no wonder some property buyers and sellers are feeling quite nervous. This nervousness resulted in a clearance rate drop to 66% over the weekend. But instead of focusing on the clearance rate, it is important to drill down a bit more and understand the volume of transactions. It was a weekend with many auctions scheduled and resulted in a solid 779 properties sell before auction and at auction over the weekend.
Our purchase success last week was mixed… we secured multiple great properties for our clients being before auction and at auction. We did on the other hand miss out on more than we bought due to high buyer competition.
There are two types of buyers in the current market. The nervous ones that are going to sit on their hands and wait to see what happens. And the opportunistic buyer who are willing to transact and hopefully take advantage of the market with less competition. We will see many more off market transactions over the next few months for a couple of reasons. Vendors are worried about investing thousands of dollars into advertising when a looming shut down is on the horizon and some vendors are trying to avoid having too many buyers treading through their properties from a health and safety perspective.
So what does that mean for buyers? Over the next few months we may see some very motivated vendors. They may have already purchased another property and need to sell. Some may need to sell because of financial reasons due to job loss. We will see more off market transactions and many properties selling prior to auction. There may be an opportunity to secure A Grade properties with less competition.
I feel very confident that if we are to see any downturn in prices, that it will be short term and the property market will bounce back quickly once the dust settles. There are too many first home buyers, downsizers, upsizers and investors still wanting to take the leap, especially with interest rates at record lows.
Stay safe and have a great week.
Melbourne | 23 March 2020
This week: 932 Auctions | Clearance: 66% | Last Year: 58% [source: REIV]
Auction of the week
92 Page Street, Albert Park
A large crowd gathered to watch the auction of 92 Page Street, Albert Park. A rare offering of a house on 600 square metres of land and a tower with a lookout.
Bidding started at $7 million and was a bit slow to start until it reached its reserve of $8 million. Five bidders ended up putting their hands up to try and secure this amazing piece of real estate with the property selling for $1.01 million above reserve for $9.01 million.
It just goes to show that quality properties sell well in almost any market condition.
Rental Property of the week
23 Fairview Avenue, Camberwell – $1,090
Sitting pretty in a leafy tree-lined street, this warm and welcoming Californian Bungalow reveals a series of updated and extended spaces ideally matched to modern family needs whilst preserving its stunning, original period features of timber floors and ornate high ceilings. Four bedrooms, all with built-in robes, a separate study and family bathroom provide ample accommodation and complement an elegant formal lounge and dining room, through to a separate family domain incorporating a contemporary kitchen with ample storage space and dishwasher and full width living/dining area opening out to a sunny north facing timber deck and in-ground, solar heated swimming pool as well as a fabulous in ground trampoline to keep the kids entertained for hours. This beautiful home is complete with every modern day comfort including ducted heating and cooling, split system cooling, single carport and additional off street parking. Enviably located minutes to elite independent schools, local shops and various transport options. Pool maintained/serviced professionally between April – September and monthly garden maintenance included. Please call the office on 03 9592 1122 if you are interested to view.
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