The Spring market is offering buyers their best shot in years at purchasing properties at lower prices not been seen for many years. The banks have toughened on their lending criteria meaning that buyers are not being able to borrow as much as they could of say twelve months ago. Plus the increase in stock which is normal for this time of year, are allowing some good opportunities for buyers that previously could not afford what they were hoping to buy. Vendors also become increasingly motivated this time of year with the desire to sell before Christmas.
On the flip side of this, we are seeing some prestige sales being no longer confined to the Bayside or leafy Eastern suburbs of Melbourne. With neighbourhoods in the north and the west now fetching sales in excess of $2 million.
Over the weekend, there were 274 properties sold at auction in Melbourne, with 79 selling prior to auction and 313 being passed in, 156 of those on a vendor bid. In addition to the auctions, there were also 170 private sales. The result, was a clearance rate of 53%.
We are positive about the future of the Melbourne property market, with prospects in certain key suburbs bucking the current trend. With our strong population growth continuing, low interest rates and prices still considerably cheaper than Sydney’s, the ease in buying conditions may only be short-lived and its the savvy investors who are making the most of the current opportunities.
The Team at Elite.
60 Ruskin Street, Elwood Sold for $ undisclosed
Evidence that that $2m plus market is not performing as well as it was this time last year was the auction of this renovated period home in one of Elwoods best streets. The auction was well attended albeit by neighbours with 40 onlookers enjoying the sunny day. The opening bid was $2.1m vendor with no more bids until after the half time break. A genuine bidder came into the mix with a large increase on the vendor bid of $2.165m. Another bidder jumped in and the property passed in to the second bidder at $2.22m. The property sold immediately afterwards for an undisclosed amount.
30A Seventh Street, Parkdale Sold for $862,000
A crowd of about 40 gathered in the sun to watch a well presented 2 bedroom unit with private front garden and street frontage go under the hammer. The property is one of only 2 on the block and has its own driveway and lockup garage, appealing to downsizers and investors looking to live close to Parkdale Village and beach. An opening bid of $740k was quickly answered by another bidder with a rise of $10k. The 2 battled it out in various denominations until the first bidder remained at $852K. As the agent was about to let the hammer fall a third bidder jumped in with $855k. Another battle ensued until the first bidder finally won the keys at a healthy $862k.
20 Bailey Avenue, St Kilda East Sold for $1,606,000
This 3 bedroom home in St Kilda East was auctioned on Sunday with a focus on its location which was situated between schools and the station in a prestige cul-de-sac. This solid-brick c.1917 home was set around 480sqm with lovely mature gardens. Bidding started off from a gentlemen at $1.2m with a crowd of around 31 attending the auction. Bidding was slow to start at first, so the auctioneer put in a vendor bid of $1.25m. Thereafter this point a flurry of bids from multiple bidders proceeded. At $1.510m the property was on the market and after another quick succession of final bids around mid $1.55m mark continued until the property was sold for $1.606m.
15th October 2018
This week: 666 Auctions
Last Year: 75% [source: REIV]