Elite’s Weekly Market Wrap
3rd December 2018
The clearance rate remained under 50% again which now seems to be the new normal. Of 946 auctions, 356 sold at auction, 106 sold before auction and 2 sold after auction. There were also an additional 189 private sales. Considering the higher volume of properties going to auction over the weekend, the clearance rate actually held up to be ok. We also know that many of these properties did not sell due to some Vendors price extectations not being in line with the current market conditions, and that many of them are likely to sell in the next week or two.
Over the weekend, our team experienced first hand the challenges of some high Vendor’s price expectations. We were representing an investor on a property that was quoted prior to auction for $700,000 to $750,000. The property passed in to us after active bidding at $798,000. To our surprise, and even the agents surprise, the Vendor set the reserve at $850,000. This is far above what the property was worth. We made a last and final offer of $805,000 in which the Vendor rejected. We informed the agent we were bidding on another property that afternoon and even made a call to the agent 5 minutes before the next auction to ask whether they would reconsider our offer. Our offer, which was the highest they had, was again rejected. We were then successful in buying another property at auction that afternoon, where the Vendor was realistic with their price expectations. We have no doubt over the next couple of weeks that the Vendor will realign their price expectations to where the true value sits.
We have two more weekends of auctions before the Christmas holidays. There will properties still on the market that have not sold at auction and Vendor’s will need tor realign their price expectations to achieve a sale before the holidays. We anticipate December will be a very active month and likely to be right up until Christmas Eve.
Hope you all have a great week.
Kim Easterbrook – Managing Director
3/19 Silver Street, Cheltenham Sold for $760,000
Single level villas are very popular assets, especially the ones that are spacious, have good floor plans, a garage and in liveable condition. Four bidders tried to secure this unit with the bidders being a real mix of buyers. There were two first home buyers, an investor and a downsizer. It was the investor (our client) that secured the three bedroom, two bathroom unit for $760,000.
22 Clarke Street, Prahran Sold for $3,435,000
Well located, unique (one of a kind) properties usually sell well in all market conditions and this was no exception. The house was owned by the owner of an Art Gallery. The property was quoted $2,800,000 – $3,000,000 prior to auction and was announced on the market at $3,100,000. The property sold for a huge $3,435,000.
43 Macgregor Avenue, Portsea Sold for undisclosed
The Portsea home of TV and footy legend Lou Richards sold during the week after passing in at auction last Sunday. The property is located in one of Portsea’s best streets. The price quote prior to auction was $3,500,000 – $3,800,000 and it is thought that the property sold at a price within the range.
1st and 2nd December 2018
This week: 946 Auctions
Last Year: 67% [source: REIV]