oc | Tuesday 31st March

The land was worth less with a nice home on it!

The market easing hey? Check this out above. No house - 5 bidders and Maurice DiMarzio sold it for over $1.8million. Now check out this picture below - this is what it looked like on March of this year (2015) when it sold for over $200,000 LESS

The market easing, hey? Check this out above. No house – 5 bidders and Maurice DiMarzio sold it for over $1.8 million. Now check out this picture below – this is what it looked like in March of this year (2015) when it sold for $200,000 LESS. No this is not some special development site – it’s a normal block of land in an extra-ordinary market.

30 Panaromic 2

mi_inn_melb_stats_021-597x66

Aug12015

Slide1815

mi_james_market_sumry_021-597x66

James Market News Lite again.

Talk of a quietening market, in a our opinion, is a little premature on what we saw today. Yes, clearance rates are down – but that is normal for this time of the year, as the real quality auction stock doesn’t come out in large numbers until either side of the Grand Final.

Stock numbers were again well below 100 for $M Bayside and Inner East, meaning it was a very low stock weekend – meaning that the we couldn’t pick and choose as much re the good homes as there weren’t that many.

Next week (circa 150 auctions), is the first time we will be looking to offer an opinion on any data about market shift. Even then, we will be couching it with more disclaimers than a financial services ad, as the market feels like its taking a breather – it doesn’t feel like its had any major directional change.

Land & Bulldozers

At James Buyer Advocates we update our land guides in each Suburb precinct and often streets as new information comes in (usually weekly as we are valuing in most precincts on a weekly basis).

Each land sale or partial land sale is considered by James Buyer Advocates for:

1) Number of bidders

2) Block characteristics

3) Position

4) Additional unusual known circumstances

5) Our long term experience

Its critical we do this, so as each of the homes we provide an initial rating review (for our clients) can be accurately base priced (we do around 200 a week in Inner Melbourne) and therefore yardsticked against others. 

By accurately base pricing:

1) you can treat selling agents quotes for what they are

2) you can sift and highlight potential differences in pricing both good and bad

This is critical in making good search and good buying decisions.

Accurate and up to date land values form the basis of all good valuations. Get land values right and you are 75% there on forming good valuation opinions. Get land values wrong and you can significantly over pay or miss out when you should have bought.

Land values as with home values and emotional quotients are a lot more an art and a science than some algorithm or guide you see on the internet lately. Happy to be challenged by a algorithm any day – they are often less help than even an agent quote. These internet guides seem to go on the old con trick. If you publish enough of them then a certain percentage will be right by sheer chance and therefore a certain percentage of buyers will think there is some truth to this stuff.

Each quarter we publish general land guides, which are used by valuers, agents, professionals and the buying public as general land price per sqm guides. For something a bit different this quarter, we thought we would release a sample suburb in each of the key areas we operate in – to show the significant differences in land prices within suburbs.

We also thought you may be interested in “what’s hot” in terms of land precincts right now – mind you almost all land is hot right now as Inner Melbourne continues under the Asian star as an International Investment Destination.

Good valuing.

Winterland2015

KewWinter2015

MalvernWinter2015

BrightonWinter2015

58 Metung Balwyn North sold at auction March 2015 - $1,950,000

58 Metung, North sold at auction March 2015 – $1,950,000

58 Metung Balwyn Sold at Auction today -  $2,281,000

58 Metung, Balwyn Sold at Auction today August 2015 – $2,281,000

mi_bigger_auctions_02-597x66-597x66 2

34 Hanby Street, (, Real Estate), $3,620,000, under hammer, 3 bidders

20 Reed Street, (Milo Rasinac, ) $2,810,000, after auction, 1 bidder

183 Church Street, Brighton (John Clarkson, Buxton), $2,640,000, under hammer, 3 bidders

mi_bidderbuzz_02-597x66-597x66 2

12 Capitol Avenue, McKinnon (Peter Sinclair, Hodges), $1,855,000, under hammer, 5 bidders

30 Panoramic Road, Balwyn North (Maurice DiMarzio, Hocking Stuart), $1,765,000, passed in, 5 bidders

5 Peel Street, (Antony Woodley, ), $1,660,000, under hammer, 5 bidders

mi_bigger_passins_02-597x66-597x66 2

1199 Burke Road, Kew $5,100,000, passed in, 2 bidders

209 Were Street, Brighton East $2,475,000, passed in, 2 bidders

70 Panoramic Road, Balwyn North $2,400,000, passed in, 0 bidders

Looking sharp isn't he? Peter Sinclair pushes 5 bidders (Volcano) under the hammer to $1,855,000 at 12 Capitol Avenue McKinnon

Looking sharp isn’t he? Peter Sinclair pushes 5 bidders (Volcano) under the hammer to $1,855,000 at 12 Capitol Avenue,  McKinnon

words-experts-graphicAgent pic_1-8-15

Agent Survey: How are stock levels looking compared to the same time last year?

Arch Staver (Nelson Alexander, Fitzroy):
We are starting to see more and more come on board for late August, our expectation is that September/October is likely to be busier than in any year past. All of our offices throughout both the inner city and through to further afield in Essendon and Keilor are fielding more and more enquiry from prospective sellers. Whilst we would be happy with a neutral result I feel it may be 5-10% higher in volume this year.

Peter Kennett (Hocking Stuart, Brighton):
The stock levels in 2015 throughout the Bayside are generally down on 2014 for all Agents. July was the quietest for many years, due mainly to the fact that we had sold everything!!! July, extremely quiet. August good. Sept building rapidly. Since the school holidays have finished the buyers number at ofi’s have been a continuation of the Autumn numbers/enquiry. I have some very good quality property on my books for both months and still building.

Richard Winneke (, ):
Compared to this time last year we are up approx. 23% on listings for August. September appears to be getting busy with a clear run for once as no Grand Final until October. Vendors have plenty of on September 5,12,19 or 26.

james_auctsquad_ad_mgas_01

Subscribe to our Market News Newsletter


Tags: , , , , , , , , , , , , , , ,

Be with James

Would you like to talk to us about finding or negotiating on your next home?
We buy 100 homes for our clients every year.
We buy Inner East and Bayside over $2m.
View more MasterClass Articles

Inside James Market News