Melbourne Auction Results – November 17, 2014
By Peter Sarmas on 17 Nov 2014
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| Melbourne Auction Results 10th-16th November 2014 | |||||
|---|---|---|---|---|---|
|
69% 1193 |
Sold at Auction: | 673 | Auction Volumes: | $683.99m | |
| Passed in: | 372 | Weekend Last Month: | 1143 | ||
| Sold Before: | 145 | Weekend Last Year: | 1148 | ||
| Sold After: | 3 | Houses: | 74% | ||
| Unreported: | 176 | Units: | 59% | ||
Price Growth and Urgency Falling
The number of properties coming onto the market continues to power on.
This week no less than 1165 were reported to the REIV, while the clearance rate was 69 per cent.
These volumes are beginning to have a significant impact. Last week’s reported 68 per cent clearance rate was revised down to 64 per cent once more results were gathered later in the week, and I’m expecting this week to see much of the same.
Although buyers are getting savvier, I keep hearing stories about how many have lost money trying to offload a bad purchase.”
What this means to Melbourne’s property market is that it is certainly losing momentum both in buyer urgency and price growth.
The total number of auctions held so far this year is 17 per cent higher than it was at the same time last year, with 32,874 auctions held in the year to date. Second tier properties are really beginning to suffer.
Unfortunately, vendors who have been sold a big price by their trusted agent are going to have a very unhappy Christmas this year as property prices begin to move sideways, and in many cases downwards.
Investors Still Strong
The latest September finance data from ABS showed that finance for investment purposes hit a new high for the month.
Excluding refinancing, investor finance makes up more than 50 per cent of finance commitments, a record high. Why?
Historically as interest rates have fallen, investor activity in property has increased as returns on savings deteriorate.
Capital growth and rental return are seen as an avenue for investors to keep growing their capital and returns, so let’s not blame the Chinese alone for our property price rises.
Street Advocacy News: Buying & Selling Property With Street News
With such a huge amount of stock on the market, it’s no wonder so many people are buying the wrong asset.
This week I was on the hunt for an investment property for one of my valued clients. The sheer volume of property, particularly property of the same type, is making it very difficult to determine the good from the bad and the ugly.
Although buyers are getting savvier, I keep hearing stories about how many have lost money trying to offload a bad purchase. I think this is just the tip of the iceberg and there is much more to come.
“Forget what the home looks like on the inside. In fact the more work it needs and the uglier it is, the better.”
The most basic mistake I am seeing is that many people are buying a property for how it looks on the inside. Home stylists are making a killing at the moment!
Now that’s fine if you’re buying a property to live in and you don’t mind if the price doesn’t go up. However, if you would like to see your biggest asset grow in value then the following couple of sentences might help.
Forget what the home looks like on the inside. In fact the more work it needs and the uglier it is, the better.
My favourite real estate line – “buy the worst house in the best street” could not be truer in this market. Focus on the location, not the beautiful kitchen or manicured lawns. They can all be done.
If you think I’m crazy, check out your next rates notice and see how valuable the land component is when compared to the total value of the home. Remember a house/building depreciates in value over time, while land in a top position should appreciate in value.
I hear so many ‘professional’ investors advising clients to buy in areas like Brookfield while they live comfortably in North Balwyn. There’s something very wrong with that picture. If the area where you are buying an investment property isn’t good enough for you and your family to live in, don’t buy it!
A special thanks goes out to my lovely neighbours this week, who purchased at great expense a property next door to fend off developers and keep our wonderful views! Suburbia has caught up.
Top 5 Houses
1. 15 Marriage Road, Brighton East $3,300,000
2. 19 Bourne Road, Glen Iris $2,800,000
3. 1A John Street, Kew $2,700,000
4. 63 Nepean Highway, Aspendale $2,560,000
5. 32 Aquila Street, Balwyn North $2,550,000
Top 5 Bargain Houses
1. 50 Monash Street, Melton South $182,500
2. 6 Junee Court, Hastings $196,000
3. 48 Marina Drive, Melton $216,000
4. 72 James Street, Hastings $260,000
5. 3 Canadian Court, Meadow Heights $270,000
Top 5 Apartments
1. 6 Bent Street, Brighton $2,080,000
2. 2/40 Grange Road, Toorak $1,451,000
3. 58B Barkly Avenue, Armadale $1,401,000
4. 1/706 Hampton Street, Brighton $1,060,000
5. 1/616 Inkerman Road, Caulfield North $990,000
Top 5 Bargain Apartments
1. 5/6 Newman Avenue, Carnegie $255,000
2. 8/314 Inkerman Street, St Kilda East $275,000
3. 8/43 Gillies Street, Fairfield $280,000
4. 1/47 St James Avenue, Springvale $283,000
5. 1/19 Bluegum Court, Narre Warren $290,000
Source: REIV
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