oc | Monday 20th May
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Big Stock, Big Crowds, Big Results – it continues on.

See the old timers still attract. Leigh and Bert bring 6 bidders to the game at 91 Were Brighton. Under the Hammer for $3,705,000

The old timers still attract. Leigh and Bert bring 6 bidders to the game at 91 Were, . Under the hammer for $3,705,000.

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Big Stock, Big Crowds, Big Results – the first of back to back Super Saturdays shows that the Inner Melbourne market is still rolling on.

Bidderman down a tad from last week, but on huge auction numbers this week and next week, that is not significant. Clearance Rates still a whopping 80+%.

Lets just focus on Bidderman for one second. 165 auctions over $1m in Bayside and the Inner East today. Bidderman was 2.5 bidders per auction. That means today alone produced 165 auctions x (2.5 bidders – (1@82%) successful bidders ) = 277 wounded underbidders who will in all likelihood bid again, probably before the Spring season is over. That was just this weekend.

The hype that the market has turned, fills internet blogs and gives publicity to people you’ve never seen at Melbourne auctions AND we as James Buyer Advocates would love some buyer relief BUT our James stats and what we are witnessing at Inner Melbourne auctions and behind the scenes, are not supporting this week’s headlines, that the market has turned.

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Are you going ok?

This week: so much stock, so little time, so many circuses in the media.

It’s enough to make a grown buyer fall off their trolley.

Please don’t fall off your trolley – you need to keep on your trolley, stick to the fundamentals and minimize distractions.

So much stock – this is as much stock as you are likely to see for a while and therefore, probably as much choice as you will get, at any given time in your home search.

This is as good as it gets for buyers in this current market. Why?

Choice for you and choice for your competitor – no, your competitor is not the agent, it’s the other buyers.

When a market is this chockers with stock, buyers do get relief sometimes; as they have more options and those options are sometimes better priced when your strongest buying competitor also has other options.

So little time – well that’s true.

Only four weeks of new stock (November), if you want to be in a home before Easter 2016. When a selling agent says this – they are actually telling you the truth.

If you are not finding what you want, call somebody who will. Currently one third of our clients are in what we call James Bid Rating mode – meaning a home has been identified, on or off market – and we are at due diligence stage or values or strategy or we have put an offer on the table.

Media Circus this week – it would be just another good read, if it didn’t have such an affect on so many Australians.

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Thoughts:

  • It’s true the market may go down next year – in fact, it may go down next week, irrespective of the Westpac move or the Macquarie Bank/Credit Suisse comments. But that is not a given – it is a possibility. The market may also go up next week and next year. This time last year we were hearing the same bubble talk with predictions the market was about to plummet. It’s gone up a further 10-20% since then.
  • James Bidderman – this is a factual measurement – it is strong. Clearance rates are still circa 80% in these big stock times. The market statistically is not weakening (yet).
  • When economists make bold predictions, some buyers go into panic mode. By the time they re-evaluate, the market has moved on again.
  • We are not suggesting you buy any old property and we totally agree the market may fall tomorrow or next year. However that, in our opinion, should not be your focus. Your focus should remain your buying fundamentals. If it’s right for you, buy it – if it’s not, keep looking.
  • As well, we are unclear why the focus is only on interest rates and earnings. For the market to fall dramatically in the areas we cover, a flow change of money from China and other countries would be the prime catalyst for dramatic change, not an interest rate tweak. This current market is not driven by Australian economic factors alone, it is also driven by overseas money flow – mainly from China and to a lesser extent, India.
  • On another media circus, the saddest thing about the Westpac decision is, ultimately it will make more young Australians noncompetitive, when trying to buy in the areas they now live in; as they try and compete with overseas buyers.

In conclusion

Yes, the market will drop in the future, but none of us know when or by how much. It will also go up in the future – none of us know the timing or the amount.

So until we know for sure that Macquarie Bank can reliably predict the future of the property market, we suggest your best bet is to stick to the fundamentals and not be distracted by their marketing talk.

Property Fundamentals

  • What is the  financial and emotional outcome you really want?
  • Does the home you are considering have good PPP’s (market value, good floor plan, good land content and good location) now and in 10 years time.
  • Will you and your family be happy there now and in ten years?
  • How can you best buy it – strategy wise?

If yes to above, we at James Buyer Advocates would recommend a buy rather than a re-read of the latest Macquarie Bank and Credit Suisse marketing talk.

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Opening Bid at the quote of $1,500,000. On the market at $1,925,000 and deal done under teh hammer at $2,550,000 six bidders later. A volcano and I think this shell which needs full reno works out at $16,700 per sqm. Jack Bongiorno presiding!

37 Leopold Street, . Opening bid at the quote of $1,500,000. On the market at $1,925,000 and deal done under the hammer at $2,550,000. Six bidders – volcano. This shell which needs a full reno (see James Rating) works out at $16,700 per sqm. Jack Bongiorno presiding!

34 Glen, Hawthorn (James Tostevin, ), $3,960,000, after auction, 1 bidder

28 Sussex Street, Brighton (, Marshall White), $3,860,000, under hammer, 4 bidders

91 Were Street, Brighton (Leigh Hallamore, Buxton), $3,705,000, under hammer, 6 bidders

Read all James Auction Reports click here

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16 Crisp Street, (Christian Hegarty, Buxton), $1,700,000, under hammer, 6 bidders

37 Leopold Street, South Yarra (John Bongiorno, Marshall White), $2,550,000, under hammer, 6 bidders

41 Merton Street, (Greg Hocking, Greg Hocking Holdsworth), $2,820,000, under hammer, 5 bidders

Read all James Auction Reports click here

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A strange thing happened at 35 Davis St Kew. Read our James Auction Report

A strange thing happened at 35 Davis Street, . Read our James Auction Report below

35 Davis Street, Kew $3,100,000, passed in, 3 bidders. What began as a routine auction didn’t end as one………

The coffee cart was doing its job and several R T Edgar and Jellis Craig agents were in play for the dual listing. A smart preamble and a few jokes were made, as a car with trailer and bed mattress, jammed traffic and interrupted the flow of auctioneer Glen Coutinho (RT Edgar). Bidder 1 opened with $2,900,000 and after a time a break for a vendor referral was on. Bidder 2 was then in with $50,000 and Bidder 1 back with $25,000. Lloyd Lawton (Jells Craig) was beside his bidders and then Bidder 3 came in after $3,000,000. Bidder 1 looked indecisive, a raise of the eyebrows not fully confirming if he was in or out. At $3,125,000 with Bidder 3 holding on, another chat with the vendors was taken indoors. The crowd waited and chatted for several minutes before Mr Coutinho returned to announce that the home would be knocked down at this price if there were no further bids. He energetically began to wind things up with the slap of the contract looming. When asked to confirm the $3,125,000 Bidder 3, an agent with his client on the phone was seen to be redialing and asking for one more minute. The crowd, the agents and the underbidders were not unreasonably puzzled at this moment. Mr Coutinho held his nerve, ‘We need to know’. And then the Bidder took off down the road to speak with his client as everyone looked on. It must be said that the agents all handled themselves and the situation professionally. Stuck in an unorthodox situation Mr Coutinho addressed his other bidders, but with neither prepared to move, the property was passed in. Note: With the final bid retracted, the property was formally passed in at the previous bidder’s offer of $3,100,000. Negotiations continue. (Randall Smith)

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