Eaglemont 41 Silverdale Road: Stewart Oldmeadow from Miles found 6 bidders willing to have a go at this home, in a crowd of 120. Bought under the hammer for $1,167,000

Welcome back to our regular reporting on the $M+ market in the north after the winter hiatus. For this season we have decided to split our reports into the three distinct areas that we operate in: the hip and happening Yarra (and southern part of Moreland), the family orientated Banyule and Darebin, and the eclectic mix that is Maribyrnong and Moonee Valley.

One thing in common with all areas is that political uncertainty is having an effect on the local market place. This seems to be on the minds of many people we have come into contact within the field recently. What history has shown us is that people are less likely to make a decision during times of uncertainty. Therefore we may be in for a late Spring market – if any at all!

Mind you $M+ stocks are picking up in both areas – see our graphs below on New Stock Levels.

And to further contradict myself, you couldn’t say that Eaglemont and Ivanhoe started anything short of rock solid with four out of four of the $M+ properties we covered today selling in the marketplace. The standout for price was David Oster’s auction at 59 Studley Road, Ivanhoe. The standout for bidders was Stewart Oldmeadow’s 41 Silverdale Road, Eaglemont.

We asked David Oster, director of Jellis Craig, what his views were on the market:

“In Ivanhoe we sold both homes today for over a million and 4 from 4 overall. For the right property people will still go hard. Tricky floorplans are still requiring strong post auction negotiations. Weather was good and people were happy. No one mentioned the election. Bob Katter is not worrying them. September is looking quiet but the phone is ringing more than last four weeks. So October and November looking ok. Ivanhoe and Eaglemont is still operating on low stock as it always has – hence no real market falls.”

We asked Sue Lacey, Miles Real Estate, Ivanhoe about the election effect: “The election has had no affect on the actual market, but people do pause, which is typical at these times. Traditionally things pick up again quite quickly, which I’m sure is what will happen this time.”

Yarra

Craig Shearn of Jellis Craig said: “It is quite difficult to say that the current political situation and recent election is having a direct effect on the market”.

Russell Cambridge of Biggin and Scott said he does not think the political situation nor the recent election has had any affect on the market.

Nick West of Nelson Alexander indicated “that election time does tend to make vendors more indecisive and does have an impact on stock.”

In September one thing is clear, and that is that stock levels are low and this is not likely to improve until mid October. Essentially what it means is there will be less properties in the market place, which may result in the supply and demand equation falling back towards the sellers. Bidder numbers may rise, and if they do this could have a positive impact on price.

Mr Shearn, whose office sold 2 out of 2, said clearance rates are quite good at the moment. However, he believes the market is patchy and noted a sale in 34 Dally Street, Clifton Hill which failed to attract a single bid. Mr Cambridge has indicated that the market in the  immediate Richmond area is strong, selling 5 out of 6 today.

Chris Murphy of Hocking Stuart was electric in his performance today at 51 Glass Street, Richmond. Seventy people witnessed five bidders try and secure this three level modern townhouse which sold just over reserve $1,310,000. Nonetheless a solid result for a property with that many levels, this further supports Mr Cambridge assertion that the market in Richmond is strong.

Mr West said Nelson Alexander clearance rates had been around 80% in recent weeks and the market was generally strong. Mr West added “there are a number of properties selling before auction and selling well, especially north of $1.5 million”.

Moonee Valley and Maribyrnong

This is a market that we are building up our stats on – but it is an important market for us. This week we purchased a home on the river at 46 The Esplanade Maribyrnong through Craig Teal of Brad Teal, and we were the underbidder at 6 Milverton St, Moonee Ponds - Matt Febey. See our report below. Over the coming months we will improve our level of commitment to $M+ reporting in this area.

6 MilvertonStreet MOONEE PONDS. Jon McKenna, Warwick Gardiner and Matt Febey

6 Milverton, Moonee Ponds: Warwick Gardiner Nelson Alexander: 5 bidders. Bought under the hammer for $1,502,500

James Auction Report: A strong opening bid of $1,220,000 and things progressed solidly from there until a half time break was called when two buyers stopped bidding to ask “was it on the market”. “Yes it is”, came the half time break reply from auctioneer Warwick Gardiner – and we were away at $1,300,000. Strong bidding continued until the very strong price of $1,502,500 was achieved. 5 bidders in total. Wow and did I mention the word strong!

We asked Matt Febey of Nelsons for his thoughts on the election and the $M+ market. “Essendon listings are already down for September but are building for October. Possibly some sellers will overanalyse and do nothing. But for the moment buyers are not really talking about the election result.”

Things have started well for the inner north, north and north eastern $M+ markets.

Clearance Rates & Monitor Table:

We Only Buy Homes

Rod Watson of Jellis Craig sells 74 The Eyrie Eaglemont post auction for $1,290,000. 2 bidders