oc | Friday 24th January

Buyers Are Not Mucking About

raw_elgin

raw_buyersIt’s 5pm and we have a 56% clearance rate on the 16 $1 million-plus auctions we attended today.

There has been significant bad news in the papers this week and, of course, people naturally get nervous again. Did it influence the market?

Maybe. Today, however, we did not feel the vibe of doom so evident for the last four months of last year whenever bad news hit the airwaves. What we saw today was a market expressing its opinions.

This was a particularly weak week for quality stock. I mean why would you run an auction campaign through Easter if you had a good home and didn’t have to sell right this minute? Why not wait another two weeks until after Anzac Day and give your auction home a fighting four-week chance to build momentum?

Today, the market said it will pay but only if the product and price is right.

– three bidders. Middle Park – six bidders. East – three bidders.

Contrast this with no multiple bidders on the 10 passed-in homes we reported on today. But look at our ratings scores; they are not as good as previuos weeks.

Valley Parade had initial thoughts of towards $2 million and was bought today for just over $1.6 million with one bidder.

Seymour Grove , bought for $1.7 million last year, was today passed in at $1.325 million. Granted, when I ran that past , they pointed out that 5 Grandview Grove was bought for $1.63 million last Easter and resold today for just under $1.6 million.

What we are seeing now is a functioning buyer’s market and a market where buyers will compete if the home captures their imagination and they will do absolutely nothing if it does not.

About a minute into most auctions, the whole crowd seems to know if we are going to see a show or not. Auctions are still one of Melbourne’s favourite Saturday sports and some of the crowds today were huge, eg 200 at Coppin Street .

We would like to thank Barb Gregory from and Ian Jackson from JP Dixon who have provided a really good insight into what has been happening in the Bayside market since .

Architect Adam has two good articles on flow and the “banks are a-changing”.

And, finally, we are still looking for that high-end apartment market; however, like an overseas buyer at a Melbourne auction, it is a rare find.

Buy well

Mal

There will be no market news next week as it is Anzac Day, so that’s why we have  a bumper issue this week. See you in two weeks and then we will have a solid run until the Melbourne Cup, with only the Queen’s Birthday weekend off.

Above is Auctioneer , a favourite of Market News for his expressions, who is looking particularly perplexed (like many of his auctioneering compadres) as to where all the buyers of pre-Easter have gone. As Jeremy, and all of us know, they are there but the product and the price needs to be right for the hand to go up and the pen onto the paper.

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