Hmmm - things are changing and right now it's not for the better. One of Hawthorn's top selling agents Richard P. Winneke fails to get a bid at 90 Walpole St Kew. Passed In $2,100,000

Today was a watershed day for the Boroondara market – a day when the market could no longer gorge the incredible amount it has been gorging (for the last six months). Today was a real (excuse me, while I burp) I just can’t fit in anymore kind of day. Today the Boroondara market which has been the strongest of the four big $m+ markets (Stonnington, Bayside and Port Phillip) showed the white flag and said I’m no different to the rest of you. At 52% it was literally a flip of the coin to see if the home sold on the day.

Going forward what will happen? That is all a matter of supply – there is simply too much stock on the market for this level of demand and therefore price cannot remain stagnant, let alone rise.

Price has fallen and will continue to do so until the market rebalances again – which may only be a matter of a month or so or it may take a fair while longer if demand shifts downwards during this transition period.

For buyers this is good news providing you understand the new rules and the tougher playing conditions the selling agents will require you to play under. While there are fewer buyers, those that are around at this level and who want to buy good homes, will face a more rigorous test than put your hand up and take it at a low price – the vendors simply won’t allow that.

However if prices adjust quickly the market may kick along again sooner rather than later. There is still a lot of hidden demand – waiting… waiting…..

The standout auction of the day was Paul Keane’s 50 Hawthorn Grove, Hawthorn, which was on the market at $3,300,000 and fell under the hammer at $3,510,000. 4 bidders.

Some words from the two dominant companies.

Marshall White – James Tostevin

‘” A real mixed bag today for the company – clearance rate around the 63% mark. Good homes as popular as ever, yet some vendor are not in line with market sentiment.”

Jellis Craig – Richard Earle

” 59% clearance rate for the company. A damp day weather–wise and a damp auction vibe overall for the market. Telling factors – upcoming election, rising interest rates, unsettlement in Europe and of  course  generous stock levels affecting the buyer’s psyche’.

Land is Gold! Gold! and Still Gold!

In a day of transition we took a look a Balwyn (and surrounds) Land – four key indicator auctions. This time last year (2009) these blocks were starting to fly with the onset of the FIRB rule changes – we revist exaclty one year on and find nothing, absolutely nothing has changed. Land is still Gold.

54 Stroud St Balwyn (Michael Nolan of Noel Jones) It was a cold, foggy start for auctioneer Michael Nolan today. In front of a small crowd of 30 – including the neighbours who watched from their premier balcony box seats – Mr Nolan kicked off with a vendor bid of $1,000,000. The bidding started slowly in $2,000 rises, but as the fog lifted so did the speed of proceedings. The emergence of 3 bidders helped push the property to be declared on market at $1,151,000. After a final knock out bid of $1,155,000 the property was bought to a round of applause from the audience.   Amy Wong reporting

5 Yongala St Balwyn (Michael Nolan of Noel Jones) Both sides knew what they wanted today and little time was wasted in getting to the end result. Auctioneer Michael Nolan was keen to start and opened the auction with a vendor bid of $1,300,000. So efficient was the first bidder that he did not even bother to leave the car, calling his bids from the front window. Four other bidders drove the price upwards and the property was declared on market at $1,425,000. The property was bought for $1,510,000. Good auction with confident bidding.  Amy Wong reporting

27 Regent St Camberwell (Michael Hingston of Jellis Craig) The cold, drizzly weather encouraged a brisk, fast paced auction. The auction started with a genuine bid of $1,100,000 which was followed by a vendor bid by auctioneer Michael Hingston. This helped move proceedings along and the emergence of another two bidders saw the property declared on market at $1,220,000 and bought for $1,270,000. Amy Wong reporting

7 Almond St Balwyn North (Scott Patterson of Jellis Craig) Hi Mal, 4 bidders, on the market at 1.25m and sold for $1.37m. A strong result. It had potential views and a 75ft frontage. Land seems to be selling well in Boroondara depending on orientation and location. Supply has increased but demand is still quite good.  Cheers,   Scott

Design Smart

Booroondara Auctions – 46 monitored – 24 bought – 52% clearance rate (last week 70% )

THE NEW BOROONDARA POST AUCTION RITUAL?

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