oc | Tuesday 21st January

A Week of Reflection and Action for Buyers and Sellers

raw_THE blind AuctionAt 5pm Saturday, the Auction Clearance Rate of James Attended Auctions was 38%. Nothing new here; but the market does have a slight sense of upbeatedness (if there is such a word), as a number of long-running deals and expressions of interest were concluded during the week.

4 Deepdene Place Balwyn – good home on more than 1770 sq metres – reportedly had three interested parties, and sold for in excess of $4.6 million via a Expressions of Interest.

9 Bramley Crt – on about 13,000 sq ft with a good but not great home – has been on the market for most of the year. Quiet auction with one bidder saw Richard Earle pass it in at $3 million. A reserve was declared at $3.5 million. It has been bought for under $3 million less than two weeks after the auction.

21 Park St – classy terrace home that went to auction on a windy day in September. No bids at the auction forced RT Edgar’s to pass it in. A reserve was declared at $3.5 million. It sold this week between $2.8 and $2.9 million.

36 Clendon Road – large luxury 38-square apartment is believed to have sold for in excess of $3.5 million, making it the first $3 million-plus sale in in four months (that we are aware of). This was a Expression of Interest campaign. The trend has been downwards for a number of that are owned by people that need to sell, seeing some sold for as much as $500,000 less than what they were purchased for.

112 St Georges Road Toorak – a deadline private sale through and Kay and Burton ending 8 December. Was sold during the week for in excess of $2.5 million.

8 Davis Avenue South Yarra – auction was due today. A solid pre-auction offer launched interest from multiple bidders, with the eventual price being $1.45 million. This was $150,000 above the quote. A well organised campaign by Will Walton from South Yarra.

17 Byron St – Good quality Art Deco, north-facing rear home on 750 sq metres. Failed auction a few weeks ago. Quote was around $1.8 million. Reserve $1.6 million. Later advertised at $1.5 million. Sold sticker up this week. Believed to have been bought around $1.3 million. All that within a month.

So what do the above results tell us? The market is hot or changing? Nope, not yet.

What it tells us is that there is action outside auctions. It tells us that non-auction campaigns are increasing and buyers will need to develop a whole new set of skills if they are to manage the smarter sellers who are insisting on better ways to market their home than a pass-in and failed auction.

Furthermore, buyers who do “work a campaign of price lowering”, or monitor a falling quote that is perfectly reasonable when we see such wild swings in quotes as we have witnessed in recent times, also need to keep at the front of their mind the “end game”. Is it to buy at a reasonable price or to go low but miss out? Most of the above had multiple bidders – in other words, while initially the vendor was your competition, as the prices lower, other buyers or bargain hunters become you, the buyer’s, competition.

We cover this in more detail in Negotiation Corner below.
What this week also shows is that time is a great deadline. Overpriced properties get reduced and fence-sitting buyers fall off as they realise that eventually, no matter what you read or hear, you still have to live somewhere.

That is why buying properties is such a good investment!
Demand will always go up and supply drop, thus forcing prices up in the longer term.

Next week is our final week of 2008 and we like to have a bit of fun – no auction reports. We are at the coalface on the buying side week in and week out. You really do get to see who the good agents and auctioneers are. So all our reporters and advocates have got together and come up with:

Top 10 Sales Agents – including best younger sales agents;

Top 10 Auctioneers – including Best Auctioneer and Best Young Auctioneer;

and we will finish with a review of 2008 and a couple of predictions for 2009.

Over the Christmas break, we will be settling into our new Brighton offices. We will reopen on 12 January and auction reports will begin in February.

Our James Home Rating main office at 313 Glenferrie Road Malvern will open 19 January.

Buy Well

Mal

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