Melbourne Auction Results – November 10, 2014
By Peter Sarmas on 10 Nov 2014
1 Comment
| Melbourne Auction Results 3rd-9th November 2014 | |||||
|---|---|---|---|---|---|
|
68% 934 |
Sold at Auction: | 525 | Auction Volumes: | $476.74m | |
| Passed in: | 302 | Weekend Last Month: | 996 | ||
| Sold Before: | 106 | Weekend Last Year: | 1052 | ||
| Sold After: | 1 | Houses: | 70% | ||
| Unreported: | 269 | Units: | 65% | ||
Is the Melbourne Property Market Straining?
We’re back. Sorry if you missed your wrap last week, but because it was the Melbourne Cup weekend only a small number of auctions were held, which meant the results were pretty meaningless.
This weekend, 934 auctions were reported to the REIV, resulting in a clearance rate of 68 per cent.
Economist Andrew Wilson pointed out that this was the first time the clearance rate has slumped below 70 per cent since the first weekend of July, over four months ago.
The Melbourne property market is beginning to strain under the huge volume of consecutively large auction numbers.
According to the REIV, there have been 33,000 auctions in Victoria thus far this year. Reservoir (517 auctions), Richmond (428 auctions) and South Yarra (408) auctions) are the top suburbs of the year to date.
A number of agents are beginning to see subtle changes in the market as more sellers find themselves at the mercy of the buyer. Vendors are seeing their properties pass in at auction, which is forcing them to meet the market.
In our opinion this latest change is a plus for buyers who have been looking to secure a property in the past 12 months.
“If it’s your intention to buy a property, then this is the time to act.”
My personal intelligence shows that demand for property across blue chip suburbs is falling compared to last year.
Buyers who have been following the market are probably scratching their heads wondering why properties aren’t selling like hot cakes anymore. Nerves, and then doubt, are setting in.
Supply certainly hasn’t been this high for some time and may not be this high for some time more. If it’s your intention to buy a property, then this is the time to act.
It’s well worth noting that prices actually fall during spring, usually by 5 per cent due to the increased volume of homes coming onto the market. The best time to sell a property is between May and August – though August is often the standout month.
Photo: The Home Page
Street Advocacy News: Buying & Selling Property With Street News
Interestingly, both vendor advocacies I handled this week involved a recently built or the proposed building of apartments.
Both clients were interested in my opinion about the future of the apartment market. As someone who came to our seminar described it, “with so many mum and dad investors buying off-the-plan apartments in their super fund, we could be seeing the unfolding of another Storm Financial.”
Despite Victoria’s increasing population, the fall in the Australian dollar means that it’s now 20 per cent cheaper to buy property in Australia.
“Supply certainly hasn’t been this high for some time and may not be this high for some time more.”
This, together with the Reserve Bank’s decision to leave interest rates on hold for the 15th consecutive month, and the oversupply of apartments in particular high rise developments, can only spell disaster for many ill-informed investors. no doubt you would have guessed what y advice would have been to these two gentlemen holding to looking to develop such assets!
As a side point, I have recently noticed a trend in the ‘smart money’ that is beginning to exit the property market.
Our share market has risen 5 per cent over the past month, while the US Dow Jones is at an all-time high. I also find it interesting that an unusually high number trophy-style homes are being sold publicly or off-market for multimillion dollar sums.
Why get out? This leads me to believe that many well-heeled residents think we are close to the top of the cycle for these types of homes (which are normally so difficult to sell), and it’s time to cash in what gains have been made.
Top 5 Houses
1. 9 Cole Street, Hawthorn East $3,800,000
2. 12 Hall Street, Brighton $3,515,000
3. 50 Garton Street, Carlton North $2,820,000
4. 64 Withers Street, Albert Park $2,570,000
5. 8 Raynes Park Road, Hampton $2,450,000
Top 5 Bargain Houses
1. 35 Phillip Street, Dallas $293,600
2. 39 Phipps Crescent, Diamond Creek $299,000
3. 82 Guest Street, Tootgarook $308,000
4. 102 Grandview Avenue, Rye $327,500
5. 38 Station Avenue, St Albans $328,000
Top 5 Apartments
1. 19A Lawson Street, Hampton $1,635,000
2. 1-4/2 Maysbury Avenue, Elsternwick $1,440,000
3. 2A Lilac Crescent, Brighton East $1,305,000
4. 9 Sylvia Crescent, Black Rock $1,230,000
5. 40B Alvie Road, Mount Waverley $1,100,000
Top 5 Bargain Apartments
1. 18/697 Barkly Street, West Footscray $171,000
2. 2/18 Currajong Street, Thomastown $230,000
3. 12/7 Truganini Road, Carnegie $278,500
4. 4/37 Pecks Road, Sydenham $305,000
5. 526A Albion Street, Brunswick West $315,000
Source: REIV
For a basic snapshot of your suburb’s performance or a property report customised for your property, request a Free Market Report.
If you are thinking of buying, selling or investing and would like a FREE 5 minute chat
with Street News Director Peter Sarmas, please contact him on 0418 740 606
or via email at [email protected]
