oc | Saturday 19th October
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It was bloody tough for buyers today (as expected)

Big crowds, lots of bidders: Leonard Persichetti (Rodney Morley Persichetti) at 78 Downshire Road, Elsternwick. Under hammer, $1,412,000, 5 bidders and a crowd of around 70

At 6.00 pm on Saturday, the James Clearance Rate for Melbourne’s $M+  was 77% on the 43 auctions we covered. The  , our bidders per auction measurement was at 2.1. The crowds were MASSIVE.

Very strong figures when you consider this was a Super, Super Saturday. For example, today was three and half times the size of a typical Inner Melbourne $M+ market weekend. The auctions we chose were random and not just A-Graders. Bidderman was a genuine representation of the current market right now and the buyer depth is near on 2007 and early 2010 times. IT’S DEEP. There is plenty of commentator talk out there about an easing market, but still no evidence (results) of this market cooling – in fact, to the contrary.

Overall Summary of Melbourne’s Million Dollar-Plus Auctions:

  • Ducks ($M+ auctions with no bidders) 24%
  • Lone Rangers ($M+ auctions with one bidder) 16%
  • Norms ($M+ auctions with 2 or 3 bidders) 34%
  • Volcanoes ($M+ auctions with 4 or more bidders at auction) 26%

Traditionally, today is the biggest auction day each and every year, due to two freaks of Melbourne’s sporting nature – The Grand Final and the Melbourne Cup (there is only one weekend to finish a four week auction campaign between them).

Huge crowd: Daniel Wheeler (Marshall White) fields bids from four parties at 11 Bringa Avenue, Camberwell, under hammer, $2,560,000, and a massive crowd of 200

James Buyer Advocates reflects today’s buyers market. We are Super busy:

  • Number of auction homes involved in buying this week was well into double figures.
  • Our mid week activity securing homes BEFORE AUCTION for clients was intense. We bought before in Toorak (Michael Armstrong), Mont Albert North (Mark Read) and Glen Iris (Jason Walker) and they were bunfights.
  • On the ground today, we lost more than we won. First time in over two years. We fought hard for our clients in Northcote, Hawthorn, Camberwell, Glen Iris, Malvern, Brighton, Port Melbourne and more – so our market opinions come from competing over almost all of Inner Melbourne.
  • Buyers who are going after very good properties need to be innovative in their strategies wherever they can, however even some of our innovative strategies got trashed by the sheer weight of buyer strength today.
  • Our eight person NEGOTIATION COUNCIL, which meets Tuesdays and Fridays to analyse, pick apart and suggest negotiation strategies going forward, was working overtime this week with two group sessions totaling six hours and numerous additional impromptu ones as we recalibrated positions in the heat of battle.
  • Large numbers of PUBLICLY ADVERTISED stock for November coming onto the market needed to be assessed and extra staff were called in to help with admin.
  • Off MARKET ACTIVITY is now leading into its Prime Time (just before Santa). If you have good agent relationships and work hard, you will get access to larger numbers of Off Markets between now and , as today’s buyers become sellers. These “two-homed” people will ponder the of quietly selling before or waiting till the New Year to try their luck with a full public campaign, hoping the market holds up. If you can secure an “A-grader” now, then consider it if the price is right. A word of caution on Off Markets – remember the James Duck Test. As a buyer, the last thing you want to do now is get distracted in this prime buying time, on an Off Market home that really isn’t for sale (even if the agent says it is). Read our Masterclass article on The Off Market Duck Test by clicking here.

This week is result, after result, after result and very little analysis as we think almost any buyer can determine what some commentators can’t. That the market is ON  FIRE right now and prices are increasing, as they have been all year.

There appears no let up in sight for buyers. Hey there is! Late spring, has for the last seven years, more times than not, been the weakest market of the year. There is hope. Of course there is, but its tough, you have to work hard and not give up or get an advocate (not that today were our finest hours).

Right now the big buyer positive as we see it is plenty of choice between now and Christmas. A smart buyer, for the most part, can still pick and choose his or her battle. So if you have had a less than stellar week, like we have had, then pick your chin up and try again next week. You can still find Home A – 5 bidders and $2,200,000 vs. Home B – 2 bidders and $1,950,000 if you don’t give up.

Blogs and articles are back two weeks after the Cup. Until then, good punting on the horses, not your next home. And hey, chin up buyers!

It's all about the crowds and bids: 35 Mary Street, St Kilda West (John Bongiorno, Marshall White), after auction, undisclosed above $4,010,000, 3 bidders and a huge crowd of nearly 200

‘Round the Grounds

:

  • Glen Iris, 49 Martin Road (Damien Davis, Jellis Craig), under hammer, $2,640,000, 3 bidders
    It’s a little quiet at this auction, the crowd is pensive. Only about 50 in attendance…(See more in Auction Reports)
  • Camberwell, 11 Bringa Avenue (Daniel Wheeler, Marshall White), under hammer, $2,560,000, 4 bidders
    There was a serious buzz and fair enough too – it was a good …(See more in Auction Reports)

Bayside/Port Phillip:

  • Elwood, 6A Joyce Street (Torsten Kasper, Chisholm & Gamon), under hammer, $2,625,000, 3 bidders
    This was one of the early auctions in this Super Saturday, however it still attracted a crowd…(See more in Auction Reports)
  • Black Rock, 26 Love Street (Mark Earle, Buxton), under hammer, $3,100,000 4 bidders
    Auctioneer Mark Earle, despite the fact that he calls a good auction, didn’t have to work too hard today…(See more in Auction Reports)

Stonnington:

  • Toorak, 23 Gordon Street (Andrew Macmillan, Jellis Craig), under hammer, $2,360,000, 3 bidders
    Auctioneer Andrew Macmillan was in good form here today. He talked up the local butcher…(See more in Auction Reports)
  • Malvern, 11 Irving Street (John Bongiorno, Marshall White), under hammer, $2,510,000, 4 bidders
    Dogs, sunshine and an idyllic backdrop provide the setting for this auction…(See more in Auction Reports)

Glen Eira:

  • Ormond, 5 Dalmor Avenue (Andrew Chisholm, Buxton), after auction $1,270,500, no bidders
    I knew I was in the correct road.  Neighbours were spilling out of pretty Californian bungalows…(See more in Auction Reports)
  • Elsternwick, 16-18 Gladstone Parade (Bill Stavrakis, Biggin & Scott), after auction, undisclosed above $2,050,000, 2 bidders
    The imposing home at 16-18 Gladstone Parade had been held by its owners for 26 years and auctioneer Bill Stavrakis…(See more in Auction Reports)

Inner/Northern:

  • Northcote, 209 Clarke Street (Arch Staver, Nelson Alexander), under hammer, undisclosed above $1,700,000, 2 bidders
    Auctioneer Arch Staver chose to hold this one on the front yard, and a beautiful venue it was…(See more in Auction Reports)

Happy days: 49 Martin Road, Glen Iris (Damien Davis, Jellis Craig), under hammer, $2,640,000, 3 bidders

Biggest Auctions:

  • Camberwell, 22 Victoria Road (Steven Abbott, Jellis Craig), under hammer, $4,450,000, 3 bidders
    If you had to pick a place to be on this Super Saturday then this would have been the place as there were…(See more in Auction Reports)
  • Malvern, 26 Park Street (Mark Wridgway, ), after auction, undisclosed above $3,800,000, 1 bidder
    Making the most of idyllic weather, auctioneer Mark Wridgway decided to hold the auction for 26 Park Street…(See more in Auction Reports)
  • , 11 Malin Street (Richard Earle, Jellis Craig), under hammer, $3,610,000, 5 bidders
    Forget the Cox Plate, the real race was happening on Malin Street this afternoon, with auctioneer Richard Earle fittingly in charge…(See more in Auction Reports)

Bidderbuzz:

  • Port Melbourne, 15 Walter Street (Simon Carruthers, Cayzer), under hammer, $1,380,000, 6 bidders
    Bang on time, Simon Carruthers welcomed around 70 onlookers who had gathered to observe the auction of this Bank House…(See more in Auction Reports)
  • Glen Iris, 4 Britten Street (Kevin O’Brien, Jellis Craig), under hammer, $2,085,000, 5 bidders
    The auction was alive here, with the crowd not only full of neighbours but also full of bidders…(See more in Auction Reports)
  • Elsternwick, 78 Downshire Road (Leonard Persichetti, Rodney Morley Persichetti), under hammer, $1,412,000, 5 bidders
    Boy oh boy! How well suited to centre stage is auctioneer Leonard Persichetti!…(See more in Auction Reports)

Biggest Pass Ins:

  • Kew, 22 Walmer Street, passed in, $5,400,000, no bidders
    All the parts seemed in place for a memorable auction. Around 120 had gathered onto the front lawn…(See more in Auction Reports)
  • Armadale, 3 Myamyn Street, passed in, $4,300,000, no bidders
    An auction attendee likened the throng to a ‘Block-style’ crowd. It was certainly a big one for Armadale at over 150 at last count…(See more in Auction Reports)
  • Hawthorn, 38 Chrystobel Crescent, passed in, $4,100,000, no bidders
    Super Saturday kicked off with a huge crowd of 120 at pretty little Chrystobel Crescent…(See more in Auction Reports)

Agent Survey: How is the pre-Christmas market looking stock-wise?

Aaron Silluzio (Barry Plant, Ivanhoe): “With Christmas just around the corner we have found that there has been an of vendors rushing to get their properties ready in time for an early December auction, with many believing that the current market conditions are the best since pre-GFC. Buyers currently in the market have welcomed the increased levels of stock with open arms as ultimately this has provided them with more choice.”

Gary Peer (Gary Peer & Associates, North): “At this stage our pre-Christmas stock levels are at the same volume as they were at this time last year. It will represent the highest volume of offerings that have been available all year and it will be a time of significant volume in trade and frenetic activity as click into action to achieve their desired outcomes for a pre-Christmas purchase or sale.  Last year our auction clearance rate through this busy period was around 80% with most of the passed in stock sold by the end of year or in early part of summer. Whilst the increased number of offerings does create some anxiety amongst vendors, I am confident the strong and positive buyer sentiment will ensure most of the offerings will clear, provided vendors aren’t seeking higher prices than those realised over the busy spring market for comparable offerings.”

Glen Coutinho (RT Edgar Boroondara, Kew): “The Pre-Christmas stock level is still healthy, although most homes are selling at auction. Now there are still many clients already listing forthcoming auctions for February and March next year, but are on market now and can be sold. This is giving us the extra stick we need, plus there is an influx of off the plan apartments still for sale before Christmas. The Market is still well balanced as we move into pre-Christmas sales.”

Campbell Cooney (Hodges, Brighton): “Whilst confidence (in all things general) remains at a ‘constant’ level, transaction will abound. Take today’s air-news … ‘Interest rates to remain low as inflation lowers!’ Stock levels have increased for the October, November and December period with bookings already commencing for February and March 2015. The only factor that will affect the appearance of stock levels is the fact it is easier to sell a property, therefore quite a few sales are occurring prior to auction and even prior to being publicly listed. This means that the buying public will see fewer properties than those actually sold. It is looking pretty good for both agents and vendors.”

 

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