CAMBERWELL, 8 Kingsley St: Scott Patterson (Jellis Craig) was all smiles. Bought under the hammer, $2,375,000, 3 bidders

Key Points:

• Clearance Rates are definitely not as good as we are used to in Boroondara but they are still healthy in the mid 60′s and nearly 40 homes over a million were bought this week
• Stock Surge – Large amounts of $M+ stock are hitting the market for pre Easter campaigns
• 61 Bellett Camberwell has been on the market since July of last year and was sold by Sam Wilkinson of Kay and Burton mid week for $3,100,000.
• The Balwyn formula of big block, new home, big price tag seems to have come to a grinding halt – very few high end new sales. Opportunity?
• Off markets are on the increase.

Agent Q & A

How are stock levels and what will they be like leading up to Easter?

Glen Coutinho, Hocking Stuart, Kew: “There will be a surge in stock levels with a lot of homes being booked for auction just prior to Easter which is traditionally the end of a selling season and a new group starting after the break for winter.”

Duane Wolowiec, Marshall White, Hawthorn: “With limited weekends in April due to school holidays and Easter, there are a number of vendors working overtime to have their properties ready for sale with the view to auction either on the 2^nd or 9^th of April. Some vendors may feel a little rushed to meet the deadline and may opt for a longer lead up time and expose their property as a forthcoming auction.”

The two big questions we are being asked right now are: how did the market start and what will happen in the future? For now we will have to leave the future bit for the soothsayers,  but in terms of what is happening now we believe that what we are seeing now is a normal, balanced and even vibrant market.

Yes, that’s contrary to some reports that Clearance Rates in the low 60% mean the market has started off weakly. As it’s only Week 1 in the auction calendar and more sold than didn’t; we think it’s too harsh, too early to say the market is weak. It maybe, but first impressions from where we stand, is a more balanced than weak market.

70% and 80% clearance rates became the norm for a few periods last year, the year before and in late 2007. So 75% plus became the yardstick for “market health” – even though those were in fact exceptional times and very strong markets for sellers.

It’s a bit like the current Australian Cricket Team. For about 15 years we had once-in-a-lifetime world-beaters in the form of Warnie, McGrath, the Waugh brothers and so on. So during that time everybody else looked bad, and compared to them, our latest test team looks bad too. But Australia’s opponents including the Poms, were actually not that bad as teams then.  They were just up against an extraordinarily good team. And we are probably not a particularly bad team now – just not a once-in-a-lifetime worldbeater team. By definition you can’t have those every season.

Just because homes are not running out the door and we’re not seeing auctions with ten bidders going at it hammer and tongs, and houses going for 20 per cent more than a similar sale last week, that doesn’t mean we are in a poor market.  Sure, the market isn’t as hot as it was, but the market has many more gears than full throttle fast forward and full throttle fast reverse. In fact the market is nothing more than a thousand negotiations every week. And, despite what you may hear at parties, these negotiations don’t have to be full throttle fast forward or full throttle reverse every single time.

In our opinion – a clearance rate in the 60% level is a healthy balanced market, good for sellers, particularly those with good homes to sell, and good for buyers too.

If you look at other indicators, you’ll see more evidence of a healthy market, with a good level of interest from buyers keen, but not desperate to buy and sellers keen, but not desperate to sell.

For instance, the measure of demand, Bidderman, (which indicates the average bidders per auction)  shows that, at nearly 2, nearly half of bidders missed out on a property they wanted to buy.  Which could mean they may bid a fraction harder to make sure they get the property they want next time.

Pass-Ins: If you look closely at some of the results on properties sold after being passed-in after auction, there was very little movement on the prices paid. There were one or two $50,000 increases, but mostly it was smaller amounts: $3,000 or $5,000 or $8,000 or $10,000 increases. That indicates that vendors and agents are not quite as courageous as early last year, and that buyers are saying you can keep the property if you like or sell it to the next bloke and vendors are accepting those offers because they don’t want to lose the buyer.

Stock:  We have healthy levels of stock in the $1m to $2m segment. There is less out there at the highest price levels – but the word is that vendors in this price range maybe waiting till after the Labour Day long weekend in March to consider putting their properties on the market.

So whatever may be said to be happening on the Melbourne market overall, our sum up of auction activity in Melbourne’s prestige property market of the Feb 19^th weekend is that we are seeing a healthy balanced market -  especially at the $1-1.5 million level.

What we have is a market where as a buyer you can buy the good ones if you’re prepared to stretch yourself a bit, and where as a seller you will sell if you price your home to market and add only a little bit.

Printed each week in The Weekly Review – Melbourne’s Million Dollar Plus Magazine

CAMBERWELL, 7 Bellett St: A mighty crowd of 120 turned out to watch Alastair Craig (Jellis Craig) in action. Passed in, no bidders

Key Points:

• Stonnington outperformed Boroondara in terms of clearance rate
• The top end is not moving with any conviction, and no sales over $3m have been reported to us this year
• Two big weeks ahead will give a greater indication as to the health of Hawthorn and surrounds. Our thoughts with the numbers at OFI’s  and the quality coming up is that this area should be moving through the gears before Labour Day weekend. However, stay tuned as, while it may have just been cobwebs and the agents are reporting differently, what we witnessed today was still a bit sluggish for this usually ever-reliable market (granted quality was iffy)

Agent Q & A:How have you found non-auction sales so far this year?”
Scott Patterson, Jellis Craig, Hawthorn:“It appears that the Boroondara market has picked up where it left off late last year.  We found the market rallied in late December which meant that several properties were sold privately very close to Christmas resulting in less for buyers to choose from in Jan/Feb.  Additionally, we have noticed strong numbers of potential buyers attending open for inspections and they certainly appear to be gravitating towards the properties being auctioned.  Of the private sales we have made so far this yea, most have been to new buyers fresh to the marketplace in 2011.  Last week Jellis Craig sold 80% of its auctions and we expect to do the same this week-end.  Volume is increasing in the next few weeks which will give a better indicator as to the health of the market.  We anticipate auction clearance rates of 60-70% in the next few months which would provide balanced market conditions.”
Tim Heavyside, Fletchers, Camberwell:“Overall, I have found non-auction sales to be solid for the start of the year.  Seasonally, this is a terrific time to sell a property via a ‘private sale’ before the autumn weight of listings flood the market before Easter (late April).  Astute vendors can either realise a passed-in auction (from late last year) or place their home as a fresh listing to tempt the new stream of buyers entering this late summer season and the start to the calendar year.”

ALBERT PARK, 139 Beaconsfield Pde: David Wood (Hocking Stuart) rubs his hands together in anticipation, but it was a quiet day at on Beaconsfield Pde. Passed in, $3,250,000, no bidders

Key Points:

• The two big ones over $3m didn’t get a bid – Mary St and Beaconsfield Pde, and the $2m Mary St only had one bidder
• Off Market – Andrew Stuart gets a big one away in Kerferd Rd for $4,900,000

Agent Q & A: How have you found non-auction sales so far this year?
Matt Young, Buxton, St Kilda:“Sales in general, be it non-auction or via auction, have been far more difficult than throughout 2010.  In short, the basics don’t change.  You need to closely match the potential buyers requirements with the right home.  In a softening market this is a far more difficult prospect, buyers requirements aren’t as easily flexed as they have the luxury of choice.  In an upswinging market the opposite is in effect, many potential buyers simply don’t have the choice and are restricted to what they can afford to buy rather than meeting their ideal requirements. With regards to non-auction sales specifically, it’s a common misconception that the auction process is less successful in a soft market.  Vendors may be concerned their home may not sell on the day, they hear many negative reports about auction clearance rates falling and fear what may happen to them.  On the contrary though, non-auction sales avoid much of this negativity due to their being no specific reporting measures available of their success rate.  In actual fact, I would suggest to most that the failure to sell ratio would be far higher through non-auction sales than via auction. Understanding your market place, knowing your buyers and having world class buyer management strategies are all now more important than ever before.  Failure to do this is quite literally guaranteeing a negative outcome for your vendors.   It’s been a terrific start to 2011.  So far this year, we have found the market to have returned earlier than usual as the volume of properties available is higher than normal presenting many potential buyers with great opportunities.”

Will we see last year's crowd numbers return for the opening of the 2011 auction season this weekend? Find out at marketnews.com.au on February 19th at 6pm.

Welcome to Million Dollar Melbourne in 2011

With the Auction Season Opener hitting us between the eyes on February 19, we know that the big question for buyers, sellers and agents is: What is going to happen in 2011?

The feeling in late 2010 was that the market was cooling and we shared that view on price – but we did not share that view on activity. The December market finished quite strongly activity wise.

What’s been happening so far in 2011?

During the last week in Jan, I personally went to 10 homes over $1million in Boroondara (Kew, Hawthorn, Balwyn, Canterbury etc). I was a little surprised at the solid numbers of people inspecting at all opens.

This past weekend (the first full one in February) I focused on Bayside, mainly Brighton, and it was very quiet, very different – with very few people.  The exceptions were 62 Dendy St (David Hart) – a new home on a busy street; a big home at 33 Middle Crescent (Campbell Cooney) and a great little home at 26 Moffat  (David Wilson). Why this last one hasn’t flown out the door yet I don’t know – we gave it a rating over 800. The other seven opens were poorly attended.

Flooding may have been one reason for the reduced activity in Bayside – this was only a few hours after that incredible rain. There were a number of cancelled opens due to inundation (a word we are hearing all too often at the moment) of garages.

Even so there is still plenty happening at Bayside’s Top End. 33 Chatsworth Brighton with 1300 sqm of absolute beachfront has just sold (with Stewart Lopez and Ian Jackson of Kay and Burton) for an undisclosed sum (we reckon around $12 million). And another property on the Golden Mile beachfront at Shandford Ave, with about 600 sqm, reportedly sold for north of $7 million with Nick Johnstone of JP Dixon. So  Bayside Top End is not exactly dead yet.

Next week we have a full book of inspections at quality homes on and off market in Stonnington. Look out for our reports.

So back to the season opener on February 19. This will be the first real public test of the auction market. What sort of stock numbers are out there at the moment?

Last year we used 100 auctions as the definition of a big Saturday. We had four of them in a row at the end of the year, after a very slow start to Spring caused by the election and then the election result uncertainty.

This February 19 sees 74 auctions scheduled – a solid start without setting the world on fire. It is February 26 that provides us with our first real 2011 benchmark with over 120 homes under the hammer. We think that weekend will be the first of about a dozen benchmark auction days we will have through 2011..

So what are the results we are looking at and what will they mean?

Bidderman, our bidders per auction indicator, is an important guide of demand. With Bidderman dropping to around 1 late last year we saw prices drop. A similar number on the first Super Saturday will not be a good sign for sellers especially because there is good stock quality on both auction days (hence no excuses), so a low Bidderman will indicate a genuine lack of interest. If that were to continue we would definitely see a drop in prices. Of course it will be a different result if Bidderman averages more than 2 bidders per auction.

The other important measure is clearance rates. These strengthened towards the end of last year –  not because buyers went berserk but because sellers were forced to meet the diminished market conditions. We had a “strongish” late market because of seller flexibility.

What will the clearance rate numbers mean? If the clearance rates at for these two auction Saturdays are in the 50% range we would consider the market to be soft, marking the beginning of a buyers’ market. If clearance rates are between 60 and 70% for both weekends then it’s fairly balanced. If the clearance rate is around or more than70% then the market noise would be strong and, depending on stock levels going forward, prices may move upwards.

CAV slackens off on Conflict Of Interest issue

One item of news that has snuck under the radar is Consumer Affairs slackening off of the old Section 55 of the Estate Agents Act. This set out a rigorous process in cases where agents want to buy vendors’ homes that are being handled by their own agency, for instance where a Hocking Stuart agent is buying a Hocking Stuart advertised property. Consumer Affairs has severely diluted the strength of the legislation by saying it no longer requires an independent valuation and that an unqualified representative can sign off like a lawyer or an accountant.

This dilution is dangerous and is being driven by either ignorance or laziness on the part of CAV. Selling agents are not asking for it; in fact many ethical agents abhor CAV actions in this matter. We all need checks and balances.

The Consumer watchdog has abrogated its responsibilities, leaving vulnerable old ladies and others to be taken for a ride.

We don’t think agents should be allowed to buy a property handled by the agency they work for at all – there is just too much conflict of interest. But if the law and CAV allows this to continue there MUST be rigorous checks and balances in place to protect the vulnerable.

Imagine if the police weakened their stance on fraud because they wanted to streamline their paperwork. This is not good enough CAV.

On a lighter note, over this year 2011 we will be bringing you even more information, more sold results, more stats, and more detailed analysis.

We will also be back to the job we love most – buying great properties for our clients. After one week back, we’ve already made our first client home purchase for a property in Thomas St Hampton. After six weeks away with the kids  - we need to get our sanity back. So bring on those auctions.

Buy Well.

THE LEOPARD: Auctioneer Jason Scillio watching, thinking, testing, watching. 1 Stawell Kew bought afterwards for an undisclosed amount. 2 bidders.

At 6pm on Saturday the final James $M+ Clearance rate for the year on the 35 auctions we covered was 69%. You may be interested to remember that back in our first Marketnews report for 2010 it was 83%. Those figures point to the year that was.

Bidderman, our demand indicator, was a strong 2.1 bidders per auction – which only confirms what those in the market know: we have had a bounce and that while the hot market has continued to cool, it has not lost all its warmth on the good homes. Our first market news in February 2010 had Bidderman at 3.0.

This Weekend’s Market:
This weekend the market continued its bounce which began two weeks ago. Bidders were there to meet those sellers who chose to meet the market. They were even prepared to fight a little harder than they were in October. Maybe it’s the need for buyers to be in a home by Christmas or maybe it’s the need for sellers to have money in the bank at Santa time – or probably a bit of both, which is normal for this time of the year. The market was in a bit of trouble a few weeks ago following Super Saturday and something had to give. And something has: sellers have given. Which is why the market has bounced in the last fortnight and is looking healthier. Sellers are now pricing their homes to meet the market. They are listening to their selling agents and they are getting the job done. In return buyers are responding, especially when a good home is placed on the market at a reasonable price. Yes, that reasonable price is 5% below September’s reasonable price and maybe 10% below April’s. But it’s still about the same as this time last year and that is how the market works. It goes up and it goes down and it does that every week on every type of property in every type of market. It’s just the median price stats and some media commentators which encourage the uninitiated to think property is a slow moving beast. It’s not. Footnote: over the long term the property market goes up more than it goes down.

Meet the market – what does that mean?
While our focus is homes over $1 million, many of our purchases are over $2 and $3 million. We also have an investment division – headed up by Valuer David McMillan. This weekend we witnessed a great example of a product that met the market and one that didn’t. They were a kilometre apart and finished around the same price – circa $850,000. Both had competent agents managing their campaigns, both have 2 bedrooms.

• Home 1: 1/45 Thanet Street Malvern with Tim Bennison, had 7 bidders and sold for $880,750.
• Home 2: 102 Sutherland Road Armadale, had no bidders and passed in on a lone vendor bid at $850,000.

The market embraced one home and completely rejected the other.

What to do now?
With basically one weekend of auctions left and two weeks of private sales and off-markets, you basically have around ten more sleeps to find what you want – or sit back, relax and wait till just after Australia Day 2011 for a burst of new stock (hopefully).

Try and make good decisions not emotional ones. If you have to rent then so be it, it’s better to rent than buy badly. But good decisions also involve reading the market and it has stepped up a bit so we do not recommend being too cute on price. Sure, don’t overpay, but don’t be too cute either.

We have bought eight homes in the past eight days – five of them outside the auction hammer. Highlights include the purchase of Munro St Armadale post auction, Kyarra Street Sandringham off-market, and Avenue Road Camberwell before auction. As well we have had solid new enquiry. So internally and externally we are seeing market indicators that point to a bounce. As we at Marketnews leave you for the year we think the market could well be in a healthier and more sustainable shape than it was when we first reported to you in 2010, just 10 short months ago. Let’s hope that is good news for 2011.

Auction in a Garden: Tim Derham, a rose amongst the thorns, passes in to the third bidder for $2,970,000, 4 Mathoura Toorak.

$3m+ market

While the highlights point to a number of successes in the $3m+ market there have also been a number of pass-ins. Which suggests that this market too is cooling or cooled and now seems balanced and healthy and this week has a bit of pep again.

This Weekend’s Highlights:

• Brighton 4/23 St Ninians, Stewart Lopez  Bought at auction for $4,825,000
• Balwyn 32 Stephens, Maurice Di Marzio, Bought under the hammer for $3,800,000 – 4 bidders
• Armadale 17 Denbigh, Justin Long, Bought under the hammer for $3,890,000 – 4 bidders
• Balwyn 12 Knutsford, Tim Derham, Bought under the hammer for $3,520,000 – 4 bidders
• Kew 1 Stawell, Gowan Stubbings, undisclosed Bought after – 2 bidders
• Kew 3-5 Rimington, Scott Patterson, Bought After above $3,650,000 -  2 bidders
• Malvern 376 Glenferrie, Iain Carmichael of Benmac passed in $4,300,000 and bought after $4,415,000 – 0 bidders

Off Market

• Hawthorn 26 Fordholm, Michael Armstrong, Over $5,000,000

Not so Highlights:

• Canterbury 34 Maling, passed in $4,600,000
• Brighton 29 Sussex (this seems to be for sale each year), passed in for $3,350,000 – 0 bidders
• Middle Park 280 Beaconsfield, passed in $4,400,000 – 0 bidders
• Toorak 83 Clendon, passed in – 0 bidders

*For more $3m+ results please go to our weekly updated $3m+ section

Bidderbuzz Auction: 43 Motherwell St, South Yarra, Joseph Allan (Chisholm & Gamon); Bought under the hammer, $1,860,000, 7 bidders
“As I rocked up you could feel a number of people had come to play – and play they did under Joseph Allan’s direction. On the market at $1,400,000. 7 bidders, all with a variety of techniques and wallet sizes provided some sparkling entertainment until there was only one left at $1,860,000. This home needed some serious work. Sorry – did I hear somebody say the market was gone?” (Mal James)

Biggest Sale: 17 Denbigh Rd, Armadale, Justin Long (Marshall White); Bought under the hammer, $3,890,000, 4 bidders
“On a magnificent day in Melbourne, auctioneer Justin Long left it to the energetic crowd for a starting bid. Within a few seconds an opening bid was made from a gentleman in the crowd for $3,300,000, which was quickly followed by a bid $25,000 higher. With four separate parties vying for the Armadale home, the price flew past $3,500,000, then $3,600,000, then $3,700,000, and finally slowed at $3,850,000. Mr. Long extracted the maximum from the bidding parties, managing to squeeze out a final bid of $3,890,000 from one very interested gentleman, and the property was sold at that price. All in all, a very well conducted auction with 80 or so people in attendance, and all participating parties walking away very satisfied.” (Daniel Ehrenreich)

Biggest Pass In:280 Beaconsfield Pde, Middle Park, Andrew Stuart (Hocking Stuart); $4,400,000; no bidders
“A large crowd of 80 sought refuge from the hot sun under the shade of the trees scattered on the nature strip.  In his preamble, auctioneer Andrew Stuart spoke enthusiastically about the property, the ‘outstanding lifestyle’ and it being in ‘Melbourne’s greatest location’.  Mr Stuart looked to the group for an opening bid, but all remained silent, so he opened with a vendor bid of $4,400,000.  Despite Mr Stuart’s best efforts there was no bidding on the day and the property was passed in at $4,400,000.” (Kate Agnoleto)

Market News TV
This week’s video auctions are at 25 Bateman St, Hampton with James Paynter (Hodges) and 19 Ferrars Place, South Melbourne with David Wood (Hocking Stuart). This week Gina, whom many of you would know as she co-ordinates all our new clients, and Jen, our Market News Co-ordinator, step in for Klarity Kris and Adam the Architect – click on the live action this Sunday.

*Please note: We always ask permission to film and we always show respect at each auction. We also never video at an auction we are bidding at. If you are at an auction and don’t wish to be filmed, there are designated no-video zones. See our co-workers or ask the auctioneer.

June 2010: Our favourite Pic for 2010: Susan McGlashan (right) of Bennison Mackinnon leads some very happy buyers inside for the sign up of 2/9 Shipley South Yarra. Bought under the hammer $2,195,000. 2 bidders. Strong.

Summary of 2010

Early 2010 started where 2009 left off, with sellers successfully getting buyers to accept their courageous asking prices, and buyers only too happy to hop on board the train, no matter the price.

Why was that?  After the 2008 Global Financial Crisis many buyers had feared further falls. Instead, by the end of 2009 the market had recovered what it lost in the GFC – and then some. And it seems buyers who missed out in 2009 were putting their hands up at auction with a sense of urgency and even panic, determined to get on the train this year.

For sellers this meant champagne and truffles, a situation that continued until Anzac Day when the market turned sharply downwards. It seems that both buyers and sellers realised that while the property market was booming, the economy – and especially the world economy – wasn’t. The Greek economy was in collapse, the Dow Jones went into a slide, and here interest rates started rising. Sellers decided it was time to rush their home onto the market to make hay while the sun still shone. But buyers were already taking a more guarded approach and were no longer prepared to pay big prices.

Properties were increasingly being passed in, adding to an already substantial overhang of stale unsolds. Where previously the market had been feeding on buyer panic, now it began to slip down on buyer apathy. The market increases of November 2009 to April 2010 were wiped off within a fortnight or so, cutting prices by around 10%.

April 2010: Strange. Very strange. Yes Glen we can see you, but check out the guy to the right. I'm not sure if he was there for marketing or to revive injured buyers. Maybe he will be mandatory at all auctions soon. Camberwell: 52 Athelstan Road: Glen Coutinho. Passed In.

A chilly winter saw a shortage of good quality homes, with only those selling who had to. And even when a good home arrived on the market, it had to compete with a growing overhang of stales (unsolds) that had been building up since May.  But people still need to buy homes, and the shortage now fueled buyer demand, which led to a bounce in early spring. It was surprising  because there were distractions – the August federal election and subsequent postulations and the footy and Collingwood’s replay victory (got it in) The first days of Spring brought out the instinctual buyers who need to move nests as the sun warms their hearts.  The sun also loosened their wallets, creating a small fillip on quality stock. But it only lasted the month.

And it wasn’t strong enough to absorb the surge of 200+ $ million plus properties going to market on October 23rd’s Super Saturday. In the weeks following, rather than risk passing-in their property to the unsolds list where they might wait weeks for a buyer, vendors initially tried to hold their prices. However, after a few weeks of denial and a Melbourne Cup interest rate jolt they finally began to revise their prices downwards. By end November clearance rates were back at a healthy, if unspectacular 65%.

And so we end 2010 almost where we started in terms of price, but vastly different in terms of what we expect for the start of next season. The heat of last summer is over, but it is still warm in parts. (Inner city quality homes are particularly still in high demand). Overall it’s a more healthy balanced market. For now. Stay tuned for next year.

2010 Awards
Most of our year-end efforts have gone into our 2010 yearbook due out before Christmas (downloadable from this site). Our legend section and their pearls of wisdom are contained within this 2010 marketnews yearbook. The two inductees into the Marketnews Legends Hall of Fame are Alastair Craig and Rodney Morley. However as this is our last 2010 marketnews it is customary to put up our 2010 awards. Consider them like Mike Sheahan’s footy awards – a bit of fun.

Auctioneers: we chose who we chose because we saw these auctioneers consistently quote sensibly (well 6 of 7 anyway), give buyers and sellers a fair go at auction, provide great entertainment and handle the sticky situations well. Other three hat auctioneers were Marshall White’s John Bongiorno, Andrew Hayne and Justin Long, Kay and Burton’s “Hollywoods” Jason Scillio and Gowan Stubbings, RT Edgar’s Jeremy Fox and Abercromby’s Tim Derham, all of whom we really enjoyed watching under pressure, who are brilliant at their job, but had a number of quote malfunctions – a Stonnington malaise for much of the year. Jeremy Desmier and Tim Heavyside are ones to watch and if Fletchers could be less conservative in their high-end auction quotes they would be right up there. Phillip Kingston mainly works the day we like to take off but when we see him we like what we see. We think Mark Earle and Craig Williamson of Buxton, Glen Coutinho, Peter Kennett, Andrew Stuart, Andrew James and Nick Renna of Hocking Stuart, Rodney Morley of TBM, David Oster, Damien Davis, Peter Batrouney and Richard Earle of Jellis Craig, Lachie Fraser-Smith of Benmac and Tom McCarthy of Biggin and Scott all put in two/three hat performances during the year.

Agents: These are the standouts for us – agents who are particularly strong in their market segment. Off market we think Marcus Chiminello from Marshall White is the one to watch.

Young agents: we dropped this segment because they are getting older.

Agency: Jellis Craig was a unanimous choice. Their comparable sales system, their attitude to buyers and general respect for all parties meant for us in 2010 they were our agency of the year.

Each year it’s a different format and each year we offend everybody we leave out – so please try not to take it too seriously.

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Thank yous
I would like to thank my fellow co-workers Adam the Architect, Klarity Kris, Value Dave, Cafe Guy and earlier in the year Ralph and Stephen and our market news co-ordinators Jen, Julia, Sim and Peter. A big thank you to our editors Karin and Melinda, organizer Gina and Michael our MD. You’re a champ Michael.  Thank you to our behind the scenes people in Peter, Dan, Julie, Jason and Naomi and our Board; Peter, Adam, David and Chrisso. Thank you to Phil for your insights as well.

I also would like to thank all the selling agents who despite being on the “other side” allow access to almost all results and auctions, assist with quotes and smooth over ruffled buyer and seller feathers which occasionally happen. There are a few agents who are extra helpful friends of Marketnews and our advocacy business. In no particular order Mike Gibson of Kay and Burton; Rob Vickers-Willis of Abercrombys; Mark “Lama” Dayman, James Tostevin and John Bongiorno of Marshall White; Iain Carmichael, Kaine Lanyon and Elliot Gill of Benmac; David Oster, the Richard(s) James, Winneke and Earle of Jellis Craig; Tom Roberts of Nelson Alexander; Ladies in Red – Jenny Dwyer and Barb Gregory and Andrew Stuart of Hocking Stuart and Geoff Cayzer – thank you. Thank you to the agents at Marshall White who let us join some of their open training sessions – it is most appreciated. There are others and I apologise for leaving you out. Three agents who have helped us a great deal and whom we would like to single out are G-E-R-A-L-D Delany of Kay and Burton, James Connell of Marshall White and Scott “Pretty Boy” Patterson of Jellis Craig. An extra big thank you.

Thanks to our trusty reporters and photographers who come rain, hail or shine are out there in their jackets – ducking and weaving, listening and recording. Thank you to Amy, Daniel, David, Doug, Sue, Kate, Tom, Linda, Nikki, Dustin and Joshua – see you all for a great lunch in a week or so and well done.

We also wish our competitors at Morrell and Koren seasons greetings – enjoyed the battle.

Thanks to our readers and the people who come up at opens and auctions and say G’day.

Finally a big thank you to all our clients who have supported us during the year.

Have a safe and happy Christmas holidays period.

Until next year then (our office closes on December 17th and re-opens Monday January 17th)

Was that a bid? Andrew Hayne (Marshall White) at 8 Avenel Rd, Kooyong. Bought after auction for an undisclosed amount above $2,510,000, 3 bidders. Do you think Andrew is looking younger - must be in a good place?

Key Points:

• Clearance Rate hovering around 60%
• James Connell MD of Marshall White: Clearance Rate expected around 80% with quality stock well supported and a bit more zing this week than the last fortnight.

Price Check: 2 Bromley Toorak (off Albany and a court) $5,600,000 for 941 sqm = $5941 per sqmetre. That is solid in anybody’s language

Highlights:

• Toorak 2 Bromley with Jeremy Fox of RT Edgar for $5,600,000 – 3 bidders
• Toorak 2 Linlithgow over $15,000,000 with Mike Gibson of Kay and Burton (Off Market and a little bit old news)
• South Yarra 2/155 Domain Road Marcus Chiminello of Marshall White bought for in excess of $7,500,000 or $20,000 per square metre  (Off Market)
• Toorak 88 Mathoura Road for $6,500,000 bought before – also Marcus Chiminello
• Armadale 12 Munro with Tim Derham, passed in at auction last weekend at $3,000,000 and has been bought afterwards.

$3m+ not so highlights:

• South Yarra 16 William: Passed In $4,200,000: Zero Bidders

Agent Q & A: In terms of real estate, what has happened this year and what do you expect will happen next year?
Brad Fleming, JP Dixon, Toorak: “Real Estate is a continually moving target. Therefore we as agents must have the ability to adapt to change along with the property market, regardless of the variables which ultimately have the biggest influence on property.  This past 12 months we have seen some outstanding actual sale prices, however sale results recently indicate a shift in the market in all levels. Buyers are more educated now with the internet – and vendors need to understand that the market has shifted and that prices need to reflect this. In saying this, there is always going to be a demand for property as people’s needs and life style requirements change with time – as long as they can see fair value in the product.”

Picture of concentration: Tim Fletcher (Fletchers) at 2 Barnsbury Rd, Balwyn. Bought after auction $2,585,000, 1 bidder

Key Points:

• Crowds smaller and less bidders with a clearance rate at 62% – lowish for Boroondara, however there were around 50 auctions over $1 million.
• Hottest market is for the $1,200,000 to $1,600,000 double fronted timber home in need of some work with a market price tag on it.
• Scott Patterson MD of Jellis Craig: Clearance Rate expected around the mid 60% level, but that is normal for this time of the year. The Asian community is complaining about the high Aussie dollar and their market is tracking down. Well credentialed and well-priced homes are going, but those vendors priced a little bit too high are simply not selling. A high ask strategy is nowhere near as successful now as it was this time last year or even earlier this year.

Highlights:

• Kew, 50 Charles, Paul Keane of Jellis Craig – going nowhere for some time then some interest, then – bang: a boardroom auction and a result well north of $4,200,000 was achieved on the night.
• Hawthorn 41 Wattle Road – good home on the market for some time. Bought for well over $5,000,000 also through Paul Keane Jellis Craig
• Balwyn 6 Ropley Laurence Murphy of Hocking Stuart – brand new French provincial believed to be over $3,000,000. The Aussie dollar may be hurting but the market still has a passion for these sorts of homes.

$3m+ not so highlights:

• Hawthorn 5 Yarra: Passed In $4,500,000: Zero Bidders
• Canterbury 35 Logan: Passed In for $2,860,000: Zero bidders

Agent Q & A: In terms of real estate, what has happened this year and what do you expect to happen next year?
Scott Patterson, Jellis Craig, Hawthorn:“2010 started very strongly with healthy demand in February and March.  Sellers realised that this might be their last chance to capitalise on a rising market so they flooded the market in May and June.  Increased volume had an adverse affect on auction clearance rates and we started to see a softening in the market by about June.  School holidays interrupted July and then we had the Federal Election in August which was unresolved for several weeks – again adding to the uncertainty.  Clearance rates dropped back to around 70% compared to 85% in 2009.  September/October saw two football grand finals play out, which meant the predictions of a late Spring were correct.  An interest rate rise on Cup Day and the threat of further increases has dampened enthusiasm and we now see clearance rates hovering around 60% compared to 80% for the corresponding period last year.  On a positive note, properties in quality locations are still attracting strong interest – however it is fair to say that we are noticing less desperation amongst buyers.  Vendors now need to revise their expectations if they are serious about selling this side of Christmas, otherwise the market will go to sleep from December 24 – January 18.  Next year will be ‘steady as she goes’ in my opinion.  We are predicting slow growth rather than the dramatic price increases we have seen in previous years.  A lot will depend on interest rate rises next year as a series of rises tends to affect buyer confidence.”

Albert Park, 22 Madden St, Andrew Stuart (Hocking Stuart); Passed in $1,700,000, no bidders

Price Check: 384-386 Barkly St Elwood (Robert Marden of RT Edgar)  555 square metres of land at $3,400 per sqm. No price drop there since May where we had a flurry of $3,000 to $3,300 per sqm land sales. This was main road land and may have multi-development opportunities.

Agent Q & A: Matthew Young, Buxton, St Kilda:
In terms of real estate, what has happened this year and what do you expect to happen next year?
“In general terms, many would suggest that we have seen the property market turn full circle this year.  When we reflect back to the first quarter the market was still brimming with confidence.  There was a shortage of quality properties, an overwhelming volume of eager buyers, numerous record prices being achieved and auction clearance rates sitting above the 80% threshold regularly. Today, just past the half way mark of the last quarter, the volume of properties on the market is  high and the number of buyers remain strong. However, they are now somewhat more hesitant, are aware that the supply of properties is in their favour, and understand that they have the luxury of choice, even enjoying seeing Auction clearance rates fall to around 60%. They are factoring in not simply that latest interest rate rise but also the much expected rise by the RBA in February. As for 2011, we can only speculate.  I’m not personally one to look at life with a half empty approach, for the real estate market has been incredibly generous to us in recent years.  With further interest rate rises on the cards, should the market correct itself further, we need not worry as it has proven time and time again that it will not only bounce back but be stronger when it does. In short, we have moved from a sellers’ market to one that now slightly leans towards a buyers’ market. In saying that, my suggestion remains that there will never be a better time than yesterday to buy property for the simple fact that we can never accurately pick the bottom of the market until it’s on the way back up. By then people often find it’s too late and they have missed the boat.  Property is, has and will continue to be a proven wealth creation strategy, with properties on average doubling every 7 to 10 years!”

Kaine Lanyon, BenMac, Albert Park:”The real estate market started this year much the same as it ended in 2009, absolutely firing on all cylinders. Prices were still moving faster than anyone could fathom. That lasted until circa early April / Easter time when the signs of easing started to appear. The next few months saw prices come off circa 5%, in my view. After this period, the market seemed to find its new level which was one of more normality and back to being, some might say, more of a fair and balanced market across the board. We generally found that the best properties were still selling under competition, with two or three parties vying for the property. Most other properties appeared to be a little hit and miss depending on where the vendors expectations were, in that a sale was transacting if the clients were prepared to listen to the new market level. If not, some properties were left sitting on the market until both parties realigned and accepted that prices had come back from where they had been. This is still the status quo. Next year I believe will deliver a new fresh market after the usual festive break and one that should be fairly well balanced and pretty even across the board with exceptional quality properties still being in high demand.”

Bidderbuzz Auction of the Day: Bill Stavrakis (Biggin & Scott) keeps cool, calm and collected at 14 Prentice St, Elsternwick. Bought under the hammer, $1,537,000, 6 bidders

Agent Q & A: In terms of real estate, what has happened this year and what do you expect will happen next year?
Tom Kurtschenko, Barry Plant, Eltham: 2010: “Early in 2010 we witnessed unprecedented growth in the local markets with strong buyer demand for all types of property.  Particularly the lower and middle end of the market attracted fierce competition and some very strong results.  As Melbourne medium house prices hit record highs, we had local suburbs in the area performing in a similar manner.  Eltham peaked at $645,000 in June 2010 while Montmorency peaked at the same time at $584,000.  In the last quarter of the year we have seen a minor correction in the local market with the combination of high levels of property available, the hangover from the federal election and recent increases in interest rates.  Over 1000 Auctions are currently booked for every weekend until the Christmas break which will give a strong indication as to the strength in the local markets.  2011: Both the ALP and Coalition have announced pre-election promises with changes to Stamp Duty to be implemented early next year.  Victoria Stamp Duty Taxes currently remain one of the highest in the country.  Liberal Leader Ted Baillieu has promised to slowly introduce new and reduced tax rates over four years, with a 20 per cent cut from July 2011, followed by another 10 per cent each year if elected.  The ALP’s policy does not reduce stamp duty for all home buyers but continues its policy of targeting first home builders, particularly in regional areas.  Both are expected to increase buyer activity early in 2011 and we expect to have plenty of properties still available to the market. ”

Keiran Whaley, Barry Plant, Ivanhoe:”The real estate market in 2010 has been a complete rollercoaster with prices soaring through a bull market in the first two quarters of the year, and the flattening of prices in the third quarter leading into the final quarter of the year where we have been inundated with supply and clearance rates dipping. The market has shown a resilience of sorts through the second half of the year through the over-supply of property.  It would be fair to say that the 10% increase in prices in the first half of the year has been partially wiped out, but our evidence suggests that we have still kept around 5% of the gain.  It will be interesting to see where the market in early 2011 goes.  If the current supply levels remain, we will be in a similar holding pattern. However, if the stock tightens up, it would be no surprise if prices slightly increase as the underlying demand still exists.”

Kew 4 Stevenson: Glen Coutinho (Hocking Stuart): Passed In for $2,750,000, zero bidders despite one of the biggest crowds of the day - 150

Key Points:

• The worst clearance rate day for Boroondara this year at 34%, but overall the stock on offer was uninspiring
• We covered 10 auctions in Boroondara, with only one selling under the hammer – a big difference to previous weeks
• Only four bidders across all 10 auctions – three of those at 18 Currajong, Camberwell (Maurice di Marzio, Hocking Stuart)
• With more stock coming on, this market has become interesting all of a sudden!

Biggest Sale: Camberwell 18 Currajong: Maurice di Marzio  (Hocking Stuart) Under the Hammer, $3,375,000, 3 bidders
“Three bidders, three advocates and one great auction! Maurice Di Marzio led proceedings and after accepting a crowd bid of $3,110,000 things quickly got  underway. Going inside at $3,140,00, Mr Di Mazio returned and a battle ensued to the very end. Bought under the hammer for $3,375,000. The winning bidder screamed and punched the air with delight before being embraced by her entourage. A fun-filled auction, strong, confident bidding and a great result.” (Jen Milligan)

Biggest Pass In: Kew 4 Stevenson: Glen Coutinho (Hocking Stuart) Passed in, $2,750,000, zero bidders
“Auctioneer Glen Coutinho and team were well-prepared for the large crowd, and a coffee service paid for by Hocking Stuart was well received by the gathering masses. Mr Coutinho’s introduction was clear, direct and he engaged the crowd well. However, when it came time to bid there was no activity. A vendor bid of $2,750,000 failed to ignite any crowd involvement, and the property was passed in at that amount. This was a very large crowd and once the property was passed in a significant number of people hovered around the nature strip, some seeking out Hocking Stuart representatives. I suspect the property will be sold in the not too distant future. ” (Dustin Cracknell)

Agent Q & A: How do you value a home?
Tim Heavyside, Fletchers, Camberwell:“The only way to truly value a home is to put it on the market and find out.  The old saying – ‘A home is worth what a buyer is willing to pay’, is still true and important to this day. From a real estate perspective, when meeting a new vendor to provide advice, we can only provide an ESTIMATE OF WORTH.  Most estate agents are not valuers, so legally, we can only provide an estimate.  I go through the following researching methods (in no order) when providing my estimates: 1. What the home sold for last, is taken into consideration 2. Market trends (timing is very relevant) 3. Recent sales in the Street – all agents 4. Recent sales in the suburb – all agents 5. Recent sales in the area/municipality – all agents.”
Glen Coutinho, Hocking Stuart, Hawthorn:”The basis for valuation is the land content that forms the underlying asset. After that you take into consideration comparable sales, the ‘wow’ factor, the streetscape and the market climate at the time.”

Toorak 6 Benson: Gowan Stubbings (Kay & Burton): The only hammer auction we attended in Stonnington. Bought, close to $3m, 3 bidders and a crowd of 60.

Key Points:

The big issue of the last two weeks week is what is happening in wash up after the Toorak – Malvern debacle on Super Saturday.

To recap on Super Saturday’s result: In Stonnington, of the nine auctions we witnessed on Super Saturday, none sold under the hammer, and the final Clearance Rate was 46%. Bayside’s was about the same, and it was really only Boroondara (Hawthorn and surrounds) that shone. 

What has happened since then? Have they been taken up in post auction dealings or do they remain unsold – creating a start of Spring overhang?

Well, of the 20 homes over $1 million that didn’t sell, only four seem to have sold as of yesterday (almost two weeks later). So that means 16 remain unsold. Hence the two week clearance rate for Stonnington since Super Saturday is still around 50%. That means stock overhang and this could drag down the price of new stock coming to auction before Christmas. If you are a Stonnington buyer that means opportunity. Opportunity on price and opportunity for choice.

Take Armadale – currently you have the choice of eight advertised homes in the $2 to $3 million range: Lambeth (2), Adelaide, Barkly, Munro, with more auctions coming on at Malvern Rd, Sutherland and so on.

It’s hard to remember the last time we had such bountiful choice on good homes in such a tight spot. We haven’t even gotten round to off-markets in Armadale at this level. Three come to mind in a second.

Remember that interest rates go up when things are going well. So if predictions for further interest rates rises prove correct this may simply be a lull in proceedings – and Santa has come early. We can see the current negatives of the markets for sellers but that shouldn’t be an excuse for buyers to freeze, as many did in the GFC. If the home is right for you and you are buying long term, then this could be a Stonnington window of opportunity.

Off Market and $3m+

• Toorak 63 St Georges Andrew Baines of Kay and Burton Expression of Interest for just under $8 million. We went through this home and tennis court: it had a good feel and, as the ad says, an exclusive street address. At around $4,000 per sqm, this result is a win for the buyer and seller.

Biggest Sale: Toorak 6 Benson: Gowan Stubbings (Kay & Burton) Under the Hammer, close to $3m, 3 bidders
“A great auction to watch. Auctioneer Gowan Stubbings led the way and offered a vendor bid of $2,400,000 after a member of the crowd offered an initial bid of $2,350,000. With three bidders overall, it became a battle between two very confident, strong parties – both determined to fight it out to the very end. One bidder offered increments of $10,000 and even $100,000, while the other settled on $1000 increments each time. Ultimately, the $1000 bidder won – walking away with the property for an undisclosed amount close to $3,000,000. A very entertaining auction with a crowd of around 60.” (Jen Milligan)

Biggest Pass In: South Yarra 36 Clara St: Justin Long (Marshall White) Passed in, $2,200,000, no bidders
“The agents from Marshall White were very up-beat about this property when I first arrived and, given the day was absolutely stunning, it looked as if we were in for a competitive auction. Conducting the auction on behalf of Marshall White was auctioneer Mr Justin Long who is always succinct and audible. After a very short time a vendor bid of $2,200,000 was placed in anticipation of giving life to this medium sized crowd. But they seemed more intent on catching up with friends than having any genuine interest in the property. In fact, they had no interest whatsoever and the property was passed in. Not surprisingly the crowd still filled the small street well after the auction had finished.” (Guy Angwin)

Agent Q & A: How do you value a home?
Andrew Hayne, Marshall White, Armadale:“When valuing homes you need to take into consideration many different aspects: land size, size and condition of the home, number of bedrooms, which way does the property face and also what else has sold of a comparable nature in recent times.”

Hands Up, says Greg Costello and 4 bidders oblige: 84 Carpenter Brighton: Bought under the hammer for $1,470,000

Key Points:

• We attended seven Bayside auctions, with only one selling under the hammer
• In Bayside since Super Saturday we’ve seen some good activity, especially in Brighton. This graph (click on to enlarge) shows the clean-up of unsold stock in the last two weeks.
• We believe the 50% clearance rate figure for Bayside is being dragged down by the high number of pass-ins of low quality stock. On good homes priced at market levels deals are still happening, making the Bayside “Good Home” clearance rate well above the current 50%.

Price Check:

• Brighton 11 Kent Campbell Cooney bought mid week for $4,100,000, which puts south-facing, non beachfront land on the Golden Mile at $$3,800 per sqm
• Middle Brighton 84 Carpenter Greg Costello puts land around the library at $2,400 per sq metre (albeit on a tight block)

Biggest Sale Under Hammer & Bidderbuzz Auction: Brighton: 84 Carpenter St: Greg Costello  (RT Edgar) Under the Hammer $$1,470,000: 4 bidders
“A modest and reserved crowd of 30 (and one child) gathered in the sun for the commencement of this Brighton auction. With a ring of the bell the auction was underway. Auctioneer Greg Costello was business-like in his preamble. Before long there was an opening bid from the crowd of $1,275,000 and with Mr Costello’s encouragement another 3 bidders joined in, vying for the property. The property was bought for $1,470,000. A great result.” (Kate Agnoleto)

Biggest Pass In: Black Rock  1 Hunter Ave: Steve Tickell (Hocking Stuart) Passed in $1,950,000 Zero Bidders
“A perfect Spring day welcomed a crowd of 35 with a strong neighbourhood presence. Auctioneer Steve Tickell spoke enthusiastically about the many features of the property in his preamble. Mr Tickell received an opening bid from the crowd of $1,950,000. Despite a great effort from Mr Tickell there were no further bids from those present and so the property was passed in at this figure.” (Kate Agnoleto)

Agent Q & A: How do you value a home?
David Hart, Buxton, Brighton:“There are three main ways: The first is by summation, where we assess the value of the land and add the value of improvements. Secondly, analysis of recent comparable sales evidence. And finally, from many years experience, by gut feel for what buyers will pay for a property, which interestingly enough, often ends up the most accurate.”
Tom Davidson, RT Edgar, Brighton:”Find the uniqueness of a property…something that stands out.”






BEAUMARIS	98 Scott Street		Not Reported
BEAUMARIS	160 Tramway Parade		Passed In
BLACK ROCK	1 Hunter Avenue		Passed In
BRIGHTON	1A Higinbotham Street	undisclosed	Bought
BRIGHTON	84 Carpenter Street	$1,470,000	Bought
BRIGHTON	64 St Andrews Street		Passed In
BRIGHTON	55A Bay Street		Not Reported
BRIGHTON	1/68 Bay Street		Passed In
BRIGHTON EAST	26 Billson Street	undisclosed	Bought
HAMPTON	33 Avondale Street		Not Reported
HAMPTON	5b Ocean Street		Not Reported
SANDRINGHAM	32 Keats Street		Passed In
SANDRINGHAM	22 Reno Road		Passed In
SANDRINGHAM	57 Vincent Street		Passed In
SANDRINGHAM	44 Tennyson		Passed In

Elwood, 45 Dickens, Jason Scillio (Kay & Burton): The biggest auction we attended in Port Phillip on Saturday. Bought under the Hammer, $3,535,000, 3 bidders and a big crowd of 80.

Key Point

• There were three bidders at both hammer auctions and none at the two pass ins.

Biggest Sale: Elwood 45 Dickens St:  Jason Scillio (Kay & Burton) Under the Hammer, $3,535,000, 3 bidders
“A large crowd gathered in the front garden of this magnificent property to hear Jason Scillio provide a well prepared preamble prior to inviting bids from a large crowd on this beautiful afternoon. After the usual hesitation, strong bidding emerged from three buyers and it was on the market at $3,450,000. The house was soon bought with a strong bid $3,535,000.” (David James)

Bidderbuzz Auction: Elwood 69 Ruskin:  Sam Gamon (Chisholm & Gamon) Under the Hammer, $1,600,000, 3 bidders
“An opening bid of $1,000,000 was quickly surpassed by the effervescent Sam Gamon, who offered a vendor bid of $1,350,000. This produced brisk bidding from three buyers with a fourth entering a little later. The property was declared to be on the market at $1,500,000 and, with a strong knockout bid of $1,600,000, was successful in obtaining this well located house.” (David James)

Biggest Pass In: St Kilda 94 Wellington:  Jason Scillio (Kay & Burton) Passed In, $1,700,000, zero bidders
“Following a brief but well prepared preamble, Jason Scillio invited bids for this magnificent two storey period home, a really sumptuous residence just so close to every amenity. Unfortunately his appeals failed to produce a response and the property was passed in on a Vendor Bid of $1,700,000.” (David James)

Agent Q & A: How do you value a home?
Matthew Young, Buxton, St Kilda:“When valuing a property there are two forms: a market appraisal which is what most agents conduct and a valuation that only a sworn valuer is licensed to carry out. As a licensed estate agent, the most important aspect when appraising property is to look at comparable sales. That is, what other properties have sold for in a similar area, the market conditions, the property’s size, features and importantly quality. It is almost impossible to find an exact match so adjustments will need to be made.  This is where experience and local area knowledge play a vital role. We also need to look at a several properties to eliminate any irregularities such as buyer emotion or a freakish result. When buying property don’t hesitate to lean on the experts for professional advice, be it buyer advocates or estate agents.”

Damian O’Sullivan, BenMac, Albert Park:”In order to accurately value a home, comparable sales evidence is of utmost importance. Relying on factual data, rather than guess work is imperative. In particular, our due diligence is based around researching recent sales of a similar / relevant nature in the immediate vicinity of the home being appraised. The research compares homes that are similar in style as well as taking into account the land size, the orientation, the condition they are in, the streetscape and more. We feel that home owners not only deserve a transparent and realistic approach to valuing property but advice they can actually rely on.”

Sam Gamon, Chisholm & Gamon, Elwood:“When we appraise a home, we adhere to certain consistent guidelines in order to ensure we take a scientific approach and provide our clients with a logical estimate, based upon recent sales of like properties. In the event there are no direct comparable sales, we assess properties which might have less features or more features and then add or subtract depending on the perceived value of those attributes. Our first port of call when appraising a home is the “walk-through”. We like to do an internal inspection so we can get a feel for size, light, floor plan, etc. All of these factors weigh into a buyer’s decision making when they’re comparing one home to the next. We then step away from the property and undertake extensive research on comparable sales within the area before we make some judgements on the final appraisal range…and submit our client with their free marketing appraisal report. We take every care to ensure the accuracy of the estimate we’re giving is fair and reasonable.”

Hampton 25 Bolton: David Hart: 5 bidders: Under the hammer for $2,800,000

Key Points:

The Jekyll of Hyde of real estate – one day it’s OK and the next it’s not. This weekend, under pressure, Bayside was all over the shop. Not really, really bad but even the most optimistic agents would still only give it a bare minimum pass. Even so, with 24 buys over $1million, it wasn’t a complete disaster.

There were 22 auctions over a $million in Brighton alone.

The result was a coin toss – 50/50. Brighton East was poor but Hampton’s Golden Triangle put in some real impressive results

• 25 Bolton Avenue with David Hart of Buxton – $2,800,000. 5 bidders – very strong.
• 43 Margarita,  also David Hart and Mark Earle of Buxton, sold Saturday before Sunday auction for over $2,500,000 – solid
• Vacant land also in Margarita St, Steve Tickell. Sold for over $1,800,000 or north of $2,000 per sqm. 3 bidders.

Biggest Sale and Bidderbizz: Hampton, 25 Bolton, David Hart, Buxton, Under the Hammer, $2,800,000, five bidders, crowd of 100 people
“A fast and furious auction, led by David Hart of Buxton. Bidding was so fast Mr Hart didn’t have time to announce when the property was on the market. Bought under the hammer for $2,800,000 in front of a big crowd of around 100 people.” (Kristen Hatt)

Biggest Pass In: Brighton, 34 Head St, Peter Kennett, Hocking Stuart, Passed In, $2,650,000, 4 bidders
“It took what seemed to be an eternity for auctioneer Peter Kennett to extract every bid he could from the interested parties at this auction, who were all very keen to keep their hands firmly in their pockets. The first bid of $2,400,000 was a good starting base and over the next forty minutes Mr Kennett kept the crowd amused with one liners like ‘The grass grows quicker than your bidding’ and “If you keep smoking like that, it’s going to kill you”, before he finally reached a pass in bid of $2,650,000. A long auction but very entertaining.” (Guy Angwin)

Agent Q & A:

What are stock levels looking like post Melbourne Cup Weekend?

Errol Driver, Hodges, Beaumaris: “After a relatively quiet start to the Spring market, the Beaumaris real estate market is showing a definite improvement with a substantial lift in houses listed for sale during November.  A number of potential sellers are tossing up whether to list now or wait till the new year. Last Jan/Feb was unusually busy and there could be a repeat of this pattern, however, as I mentioned last time, the interest rate environment holds the key to what will happen. My advice to those in a quandary is, list NOW to avoid any pre-xmas activity slowdown and consider buying in the New Year.”

Halli Moore, Buxton, Brighton:”Things are looking pretty good post cup weekend with a reasonable amount of auctions booked for the end of November. I believe that it may  be a late end to Spring with vendors also looking to auction into the first 2 weeks of December as well. (There has) also been reasonable inquiry from people looking to lock in dates for February next year.”

Results: