Sandringham 5 Jennings: Steve Tickell and Jenny Dwyer with bidders everywhere - is it another bidder? Nope it was a low flying plane.

It is 6pm and the James Million Dollar+ Clearance rate from the 47 Auctions we attended today was 83 per cent.

This week, we are focusing purely on the market, as it is the first major quality offering since late 2009. Next week is Labour Day (no Market News) and then it’s only three weekends of auction action until Easter. No tips and tricks; just report after report after report so  you can see what is really happening right across Melbourne’s million-dollar-plus market.

Bidderman is without doubt the best measurement of market strength and market depth and the best short-term predictor going around. At the moment, it is a very strong 2.8; which basically means for every million-dollar-plus buyer there are almost two buyers who wanted to buy but couldn’t.

As a price predictor, this demand measurement is so important.  It really doesn’t matter what stock levels you have, for as long as Bidderman remains at these levels then prices will continue to rise. When the market was falling in late 2008, Bidderman was below one. Currently the only sub-market that has a Bidderman approaching one is the $2m+ apartment market.

Wormie also returns. Wormie is our price change estimator. Unlike REIV Median Prices or Bidderman, Wormie is not an exact science – it is subjective but it is also immediate and comes from our experience and being involved in hundreds of buy results and auctions. Wormie was on the rise all last year with his/her steepest incline coming very late, in November and December. February 2010 sees Wormie continuing at the scene of the crime (if you are a buyer) and is strutting his/her stuff in an upwards direction.

A strong Bidderman and rising Wormie is supported by both Scott Patterson of Jellis Craig and James Connell of Marshall White informing us that each of their companies had auctions numbering in the mid 40s today and only a handful of homes (six) between their companies remain unsold this evening.

But don’t take our word for it – let’s go Around the Grounds to use an old Mike Williamson football catchcry and find out what is happening. The auction reports – the champagne and the tears – all across million-dollar-plus Melbourne.

Starting down south of the Bay and an early coffee at Limoncello’s

5 Jennings St Sandringham: Auctioneer: Stephen Tickell  Result: Bought After $1,850,000  Bidderman: 3
Big family home on a good block of land. James Rating: 717
James Auction Report: Huddled in the driveway under the plane-tree stood a crowd of 40, sheltering from the cold and wind. For a long while, only the noise of a low-flying plane interrupted the peace and quiet in this Mediterranean-inspired front yard. After opening with a vendor bid of $1,700,00, and then conferring with the vendors, three bidders finally showed their hands. However, auctioneer Stephen Tickell still had to pass in the property at $1,820,000.

Moving along the Bay and into the heart of Bayside and the Jewel that is Brighton – perhaps a mineral water at the Pantry

40 Sussex St Brighton: Auctioneer:  Stewart Lopez Result:  Bought for $3,250,000  Bidderman: 4
Basically land with a home that sits well in Caulfield but not necessarily here. May well be bulldozed. James Rating: 728
James Auction Report: A great result from very keen bidders in front of a large crowd of around 100 people. Auctioneer Stewart Lopez accepted an opening bid of $2,600,000 and the property was soon on the market at $3,250,000, subsequently selling at that price. This is very strong; at 712 metres that makes land in excess of $4000 per sqm for Brighton’s Diamond K precinct.

After that incredible result, we move along Beach Road towards town and into Elwood – I think it’s eggs at the Turtle or a milkshake at Jerry’s (hard choices)

8 Addison St Elwood: Auctioneer:  Kaine Lanyon Result: Bought for $1,480,000   Bidderman: 4
An Elwood special – one of a pair, reasonable land size, in need of a reno. James Rating: 618
James Auction Report: When a solid opening bid of $1,200,000 is trumped by $100,000, you know that you’re are in for a strong auction. The price raced from $1,300,000 to the sale price of $1,480,000 in record time. Four bidders for this attractive property with lots of promise.

Dusting ourselves off, let’s go past Acland St along the bay and into St Kilda and one of the more beautiful projects you will find – Loch St. A no-reserve auction with an incredible Bidderman 8 – her dance ticket was full 100 years ago and is full again today. Gluten-free muffins at Armstrong St Foodstore and on we go.

Loch St St Kilda West

23 Loch St St Kilda West: Auctioneer: Rodney Morley  Result: Bought for $4,100,000  Bidderman: 8
Needs a big reno but she is a girl that will look better with the facelift. James Rating 694
James Auction Report: The auction of this grand old St Kilda West property, which was at one time an RSL, was expected to attract a lot of interest – and it certainly did. A staggering eight bidders fought it out in front of a massive crowd of 150-plus. Rocket Rodney Morley, of Talbot Birner Morley, led the way after accepting an opening bid of $3,000,000. With no reserve, and fierce bidding, the property quickly sold for $4,100,000.

Winding our way along the Albert Park beach, we take a turn eastwards and we work off the calories at the Aquatic Centre and a lap of the lake and we come to

10 Anderson St South Melbourne: Auctioneer:  Warwick Anderson Result: Bought After $2,900,000  Bidderman: 2
Big land for here in a great street with a Colonial Victorian home and modern internal finishes. James Rating a whopping 852
James Auction Report: Striking colours, paintings and sculptures gave this Victorian terrace an art gallery-type feel and everyone looked quite intrigued. Warwick Anderson (RT Edgar) gave a polished talk but the medium-sized crowd of 68 was unresponsive and so he offered a $2.35 million vendor bid. Two bidders then entered, one offering 2.375 million and the other 2.4 million. But it all went quiet and a vendor meeting took place. No further bids could be obtained from the restrained crowd and the property was passed in at $2.4 million. Yeah but what a finish afterwards – a further $500,000 post-auction.

Let’s leave the Bay and head over town to the gladiolas suburb of Moonee Ponds

2 Jennings St Moonee Ponds: Auctioneer:  Paul Harrison Result: Bought $1,056,000 Bidderman: 3
Beautiful period home that needed some love in an OK street
James Auction Report: Auctioneer Paul Harrison started us off with a vendor bid of $1 million. With the wind blowing and rain imminent, the bidders in the crowd gave their intentions. At $1,045,000, the house at 2 Jennings Street Moonee Ponds was on the market. The winning bid was $1,056,000. Well done to the team at Marston & Cook.

Moving East to Boroondara and we see what is happening in Kew – a sandwich at Crittendens perhaps

87 Sackville St Kew: Auctioneer:  Richard Earle Result: Bought under the hammer for $3,305,000   Bidderman: 3
Great block of rear-facing northern dirt with a good home that needed some upstairs work in the Sackville Ward. James Rating 839.
James Auction Report: Richard Earle and the Jellis Craig team (especially Greg Toogood) ran an excellent campaign, culminating in a strong auction for this Kew property. Mr Earle opened proceedings on a vendor bid of $3,000,000 and the property went on the market in the $3,100,000 range. Three bidders fought it out and the property sold under the hammer for $3,305,000. Great to see Alistair Craig and Richard Jellis among the crowd.

Next door in Hawthorn’s million-dollar-plus river precinct and a freshly squeezed orange juice at Osso

But 24 Yarra St Hawthorn: Auctioneer: Scott Patterson  Result: Bought for $2,315,000  Bidderman: 3
Unusual offering for this part of the world. A downsizer in Hawthorn’s river precinct. James Rating 646
James Auction Report: Scott Patterson cruised through this buoyant action with the help of three bidders, reaching a sale price of $2,315,000, and making for a very happy vendor. More than 50 people attended this auction at a blue-chip address in Hawthorn.

Before we finish our million-dollar-plus tour with the usual suspects, Malvern and Toorak, let’s “go out of town” a bit

Noel Jones's Michael Nolan at Banff Court Balwyn

1 Banff Court Balwyn: Auctioneer: Michael Nolan   Result: Bought for $1,352,000  Bidderman: 3
We think this was for some land only; for others it was a good 1950s home needing some love. James Rating 611
James Auction Report:  With the clouds becoming darker, the auction for 1 Banff Court, Balwyn began. Auctioneer Michael Nolan’s enthusiasm gave the small crowd something to smile about. The first bid was a vendor bid at $1,200,000, but at 25k rises, no-one wanted to bid. The silence was broken with a quiet voice confirming a bid, another bidder gave their bid and we sat on $1,300,000. The auctioneer went inside to the vendors and arrived back quickly to advise that they would deal with the highest bidder. The price eventually stopped at the winning bid of $1,352,000. Well done to the Noel Jones team.

And while out here, what about the next-door suburb of Surrey Hills – what’s buying for $2,000,000?

35 Essex Road Surrey Hills: Auctioneer:   Clayton Smith Result:   Bought for $2,007,000 Bidderman: 2
Great block of land with a good period home in need of a big reno at back but it would be worth it. James Rating 660
James Auction Report: Midday showdown at 35 Essex Road, Surrey Hills: the dog fight began before the auction started, with two canines tussling in the street. A huge crowd of 120-plus witnessed auctioneer Clayton Smith take bids from two parties after the opening vendor bid of $1,700,000. The house was on the market at $1,950,000. The highly entertaining banter between these two bidders gave us the highs and lows of auctions. After nearly 60 bids, there could only be one winner and the property sold under the hammer for $2,007,000. Congratulations to the Jellis Craig team for a magnificent result and auction.

Heading back into towards the CBD (after a coffee at Maling Road), we stop to check an auction on Camberwell Hill just up from the Junction and the Rivoli and Provisions foodstore (how many foodstores have a mission statement?)

17 Sunnyside Camberwell: Auctioneer:  Antony Woodley  Result:  Bought undisclosed  Bidderman: 2
Sunnyside estate’s best land and street with a modern, slightly dated family home on it. James Rating 813
James Auction Report: Auctioneer Antony Woodley started with a positive spin on 17 Sunnyside in front of a large crowd approaching 100. Despite his words, it seemed hard to extract an opening bid ,with one eventually coming from the crowd at $2,400,000. There were then some vendor bids and further bids from the initial bidder until a second bidder joined in and it was announced on the market at $2,700,000. It eventually sold under the hammer for more than $2,700,000.

Almost finished and there is only so much champagne you can drink in one day. Glen Iris has been a regular $2m+ family home suburb since mid last year – now it seems new benchmarks at $3m are being set.

45 Dorrington Glen Iris: Auctioneer: Michael Clarke  Result:  Bought for $3,500,000  Bidderman: 3
Another unusual offering for this part of Glen Iris; period façade but everything else is a modern home in the Dorrington estate. James Rating 770
James Auction Report: This auction was reminiscent of the opening scene of The Lion King. The wind softly howled as a huge crowd of 150 gathered awaiting the auction party. All eyes looked upwards as auctioneer Michael Clark and team perched themselves on a hill overlooking the expectant audience. Mr Clark acknowledged the auction was “bigger than Ben Hur”. After a slow start, and two vendor bids opening at $2,800,000, Mr Clark, like a proud Mufasa, urged the crowd to dig deep into their hearts. Three bidders did and the property sold at $3,500,000 with cries of joy from the buyer and the applause of the entertained crowd.

One exit along the freeway and our second-last stop of Malvern

26 Chesterfield Malvern: Auctioneer:  Jeremy Fox Result:  Bought for $2,150,000  Bidderman: 4
Good family home in a well regarded part of Malvern. James Rating 663
James Auction Report: The never-ending auction has ended after this home, which has been on the market with three agents for six months, finally sold. Jeremy Fox from RT Edgar was today’s successful auctioneer. In front of a circumspect crowd of less than 60, we saw an opening bid of $2,800,000 and it went up in small amounts from three bidders until $3,000,000, when a fourth bidder called out $3,100,000. After a second visit inside, Jeremy returned and announced the property was on the market. A few more bids saw it sell under the hammer at $3,150,000 and it was finally all over.

And we finish our tour with the Jewel of Jewels,  Toorak – like everything else for the most part, in that $1m to $5m range, homes are selling with many bidders. Oh and a quick corn beef sandwich at Treat – this is hungry work!

2 Selbourne Toorak: Auctioneer: Justin Long  Result:  Bought undisclosed  Bidderman: 5
Great family home in Toorak. James Rating 846
James Auction Report: A great buzz of anticipation was felt as 100-plus people swarmed into the courtyard of this Toorak property. Auctioneer Justin Long, feeling good in his ‘new suit’, got things rolling with a vendor bid of $3,900,000 and five bidders joined in, with rapid bidding coming in from every angle. It didn’t climb quite high enough during auction and was passed in at $4,600,000. Sold after auction for an undisclosed amount.

Hope this gives you an unequivocal view of where Melbourne’s quality million-dollar-plus market actually is right here and now in 2010 (and why I’m putting on weight). These homes were chosen for their quality but otherwise randomly, prior to results being known today. They have one thing in common: they were all bought.

At James Buyer Advocates, our own internal results show similar market strength for sellers and we are continuing the trends of last year, where we bought 68 homes in the $1,000,000 to $4,000,000 range but only one in seven were bought under the hammer within 20 per cent of the initial agent quote. Yesterday, across all markets, we bid on 10 homes and were successful in five – Hawthorn, Hawthorn East, Camberwell, Brighton and Toorak – and unsuccessful in Bentleigh East, Kew, Camberwell, Elwood and Ashburton. One final statistic of note (and hope) is less than 5 per cent of our clients don’t buy or take longer than 12 months to negotiate successfully on their dream home. Sure, it is not easy for buyers out there, but if you have goals, a plan and good strategies you will buy – after all, somebody has to and, if it’s the right home, it might as well be you.

Buy Well

Mal