oc | Wednesday 22nd January

That’s more like it – some good news this weekend!

Spring is in the air and the crowds were happy: , 21 Kerferd Rd, Andrew Hayne (), under hammer, $1,880,000, 3 bidders

At 6pm on Saturday, the James $M+ Clearance Rate was 75% – yep that’s 75% across the 28 auctions we attended. The Bidderman was 2 bidders per auction.

WOW, what a difference a week makes! Sure, it may be a statistical anomaly and the sample is small – but it’s the first day of Spring, so let’s indulge in some positives. The crowds have been building through the back end of August and this weekend things went bang. Many of the auctions we covered were in the lower and stronger end of the $M+ market, but the results are what they are.

Small Samples – Big Clearances

  • $M+ Boroondara – 72% on 20 auctions
  • $M+ Stonnington – 76% on 20 auctions
  • $M Bayside and Port Phillip – 71% on less than  20 Auctions

This week every second auction we went to had two, three or four bidders. This was the most consistent bidding day we can remember this year, although it was on small samples. The two homes that we bought had six other bidders between them, apart from our clients.

The really big news is that a lot of it was sold under the hammer. Last week just 1 in 5 sold under the hammer – this week it was more like 1 in 2. This weekend you could feel a noticeable lift in the market at the lower end and even at the $3m+ level. The Top of the Top End was still icy though – it’ll be interesting to see if 779 Orrong sells in the next few days.

Last Week

This Week

Hammer Rate

19%

43%

Bidderman

1.6

2.0

Clearance rate

55%

75%

This weekend was about three things:

  • Improving quality of stock on offer (although still on lower numbers than in previous years)
  • A realisation by many vendors that the world of price has changed. This, in our opinion, represented good selling agent work. They are getting their message through.
  • More people putting their hands up at auctions

Some evidence from Price Resales this week.

  • Armadale, 9 Armadale St –  Sold for over mid $1 million, we estimate that’s around 15% less than it sold for in 2010
  • , 7 Park St –  Private sale at $3,980,000 – A very good 2012 result, but still down around 10% on the previous sale price in 2008.

We are not saying that all homes are selling for less than they did in the last 5 years, but we have certainly been seeing more resales below previous sales than above in recent times.

What’s Big Land Worth in ?
15 Torrington (James Tostevin) had five bidders at around $3 million, which shows that land with space for a tennis court in that little pocket is being valued at $2,000 a square metre. That is a very solid 2012 land price for the size (1600+ sqm), and it shows that if  vendors are asking a sensible price, have a good agent and good land (in this case, our James Home Rating was 514/1000, given the space for a north/south tennis court), then bidders will come and compete. The story was similar at 60 Broadway, Camberwell (Tim Picken), which was bought this week within the $4.5 million to $5 million quote range. Our James Home Rating was 729/1000. At 2400 square metres, that confirms a value of around $2,000 per square metre for good, big Canterbury land in the right location.

Stock Levels
When 100 auctions ($1m+ in Inner East and Bayside) is a solid weekend, and with only 50+ this weekend and the same next weekend, you can see that we are on lowish stock levels. However, we have seen some good stock numbers entering the market in the last fortnight, and in two weeks time we will have around 100. The following weekend is Preliminary final day (Go Pies!) and this should also be a strong weekend. So Spring’s first big market test is in two weeks time. Fingers crossed it’s a good balanced result!

Biggest Sales:

  • Canterbury, 15 Torrington Pl, James Tostevin (Marshall White), under hammer, $3,250,000, 5 bidders
    The crowd spread about across a roundabout outside this top-of-a-court position…(See More in Auction Reports)
  • Toorak, 13 Millicent Ave, Justin Long (Marshall White), under hammer, $3,160,000, 3 bidders
    A set of characters straight from central casting played their part at this auction…(See More in Auction Reports)
  • Kew, 4 Queen St, Steve Abbott (), under hammer, $2,865,000, 4 bidders
    Cracking auction and for good reason: this was a cracking house…(See More in Auction Reports)

Bidderbuzz Auctions:

  • Hampton, 69 Willis St, James Paynter (Hodges), under hammer, $1,405,000, 6 bidders
    The first day of Spring, bright sunshine with a crowd of 100 people filling the street to attend the auction…(See More in Auction Reports)
  • , 7 Henrietta St, (Kay & Burton), under hammer, $1,225,000, 4 bidders
    The first day of spring and a great day for auctions with the warm weather providing great relief from the cold of winter…(See More in Auction Reports)
  • Glen Iris, 28 Vincent St, Doug McLauchlan (Marshall White), under hammer, $2,010,000, 4 bidders
    The first day of Spring brought with it a beautiful sunny day…(See More in Auction Reports)

Biggest Pass Ins:

  • Toorak, 779 Orrong Rd, passed in, $7,000,000, no bidders
    Auctioneer Gerald Delany revelled in the spring sunshine and, buoyed from an earlier auction success, was fired up for this auction…(See More in Auction Reports)
  • Brighton, 26 Barkly St, passed in, $3,200,000, 1 bidder
    Leigh Hallamore and team ushered the 60 or so people that had gathered in the warm sunshine into the front courtyard of this Brighton property – the perfect setting for an auction on this pleasant first day of Spring…(See More in Auction Reports)
  • Kew, 28 Ross St, passed in, $2,800,000, no bidders
    Auctioneer Maurice Di Marzio, alongside agents Helen Yan (), and Mark Dayman (Marshall White) made a happy team for this dual-agent listed property..(See More in Auction Reports)

Agent Question: What are September and October stock levels looking like compared to last year?

Steve Burke, Jellis Craig (Hawthorn): “Stock levels seem tighter than usual and again this will help keep prices up across the board. The buyers in the marketplace seem to be a bit shy to bid requiring that ‘social proof’ from another bidder before they are prepared to put their hands up at auction.

Justin Long, Marshall White (Armadale): “It certainly seems to be getting busier and we have similar stock levels to September and October last year but everyone is definitely a little light on in the upper end of the market where there is probably more demand for appropriately-priced family homes than most vendors give credit for.”

Bill Stavrakis, Biggin & Scott (Elsternwick): “I would say that the stock levels are looking ‘wafer thin’. Just as well. With summer around the corner all the agents can watch their weight…”

Just a lazy 150 people at this 4 bidder auction. Kew, 4 Queen, Steve Abbott, $2,865,000, under the hammer.

$3m+ Report: An about-face this week!

Our $3m+ comments last week now seem almost overly morbid. But they weren’t, they were accurate for the Winter Market, and it’s important to remember that this week was only one week in the $3m+ world ……. But what a week it was! The best since May 2012 by a fair margin! This week at the Top End was similar to the late August rush we had in 2011, although the dollars were lower. This week, results hovered around the $3 – $4 million+ mark, whereas in late August 2011 there were a lot more in the $5 – $6 million + segment … but  it was still a very solid and uplifting week for the market. At this stage we would say though that it’s still just a spike. We need another month of this before we can say it’s a directional change. Here is some more of this week’s action.

Kay and Burton Boroondara (Tim, Scott and Sam a.k.a. The Thunderbirds) headlined with

  • Camberwell, 60 Broadway, Tim Picken – big land plus tennis court, with a home that needed a lot of work. In excess of $4,700,000
  • Kew, 9 College Parade, Sam Wilkinson, – great internal floor plan. Street and facade: mmmm – Ok. Just under $3,300,000
  • Canterbury, 31 Chaucer Cresc, Scott Patterson – renovated family home, over $3,500,000.

Buxton Brighton with Regina and Brian headlined – yep that’s right Brighton. Finally some action by the Bay.

  • Brighton, 36 Normanby St, Regina Schmidt and Brian Devlin
    Private sale – Land with tennis court – $4,800,000
  • Brighton, 7 Park St, Regina Schmidt and Brian Devlin, $3,980,000
    Private sale – Very good result, down only around 10% on previous price in 2008.
  • Brighton, 2 Collins St ,Regina Schmidt and Brian Devlin, near $3,000,000
    The mysterious block of two – More sales than an yacht race. Reportedly over the line – good job if it is.
  • Brighton, 22 Normanby St, Campbell, Cooney –
    Passed in a few weeks ago at $3,300,000 – Bought mid week well above that
  • Middle Park, 197 Beaconsfield Parade, Tim Blackett, –
    On the market since last year – Bought mid week

Some follow-up on last weekend’s auction pass-ins at $3m+

$3M+ Address Last Week Now
Canterbury, 22 Victoria Ave Passed In Sold
Hawthorn, 11a Elmie St Sold Sold
Toorak, 10 Myoora Rd Passed In Still For Sale
Glen Iris, 19 Scott Grove Passed In Sold
Kew, 30 Walpole St Passed In Sold
Malvern East, 66 Central Park Rd Passed In Still For Sale
East Melbourne, 40 Jolimont Tce Passed In Still For Sale
Kew, 264 Cotham Rd Passed In Still For Sale
Toorak, 1/9 Flintoft Ave Bought Before Sold

 

And finally, two really good homes to view

If you want to see two great $5M+ homes, then try to get to either one of these before they are sold:

Go Pies!

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