State of the Spring Market

AAAMarketnews

 

2 bidders fighting it out at 18 Page St Albert Park - Shane Seimers - Under the Hammer $2,740,000. Cosmetic update since it last sold in 2015 for $1,875,000

2 bidders fighting at 18 Page St – Shane Seimers – Under the Hammer $2,740,000. Cosmetic update since it last sold in 2015 for $1,875,000

SOM

With the key drivers of the 2000’s:

  • Migration
  • Chinese Students
  • Easy Bank Money
  • Negative Gearing (Interest only loans)
  • Lack of Infrastructure

being “attacked” politically from all angles (many would say this is a good thing for our young / community to at least pause and consider), the market is showing signs of and has the potential for major structural change.

Forget the GFC of 2008 and the dollar exchange crunch of 2011 – they were blips – treads in the rising price staircase. Whilst they could have been, they were not major game changers. The major game changers were/are immigration/overseas students, negative gearing, bank lending practices and the complete lack of foresight and discussion around infrastructure.

What we are seeing or potentially seeing is a “perfect storm” of element change of Australia’s Top end property market, through a political process.

What is going on IS having an affect on our markets and some of us (James included) think this could be a very good thing.

How may this effect?

  • Buyers
  • Sellers
  • You

We discuss this and more in detail in this weekend’s July 28th-29th James Market News.

Don’t miss it.

Buy-SellInsanity

At James Buyer Advocates an increasing part of our work is selling advocacy – that is, we advise our clients in buy/sells which

  • selling agent,
  • realistic options to expect and
  • how to deal with problems (effectively) when they (in this market almost inevitably) arise.

This week another completed Buy/Sell result in , several weeks after a no-bid auction and several months after we had bought them another home. Great job Jen Dwyer.

The result or more to the point the journey was similar to many we have experienced with clients this year.

For many in Spring of 2018, a successful Buy/Sell process looks nothing like the “wam-bam-thank you m’am” of auctions of 18 months ago.

If you are not expecting what you get – as you are perhaps unwisely hoping for things to be as they were – then this is where your mindset can get out of control – to the point that you can make poor decisions – ones that cost you hundreds of thousands of tax-free dollars.

Money that you will not be getting back in a hurry.

Auctions are great when you have a frenzy of bidders however, they can be incredibly costly when you do not.

Currently, the majority of auctions DO NOT have multiple bidders.

Would you bet $30,000 on a longshot at Flemington this weekend – currently many sellers are doing this with their home. In fact, they are putting a lot more at risk than just wasting $30,000 on an advertising spend – they are damaging their overall price prospects.

More on that in the week following – August 4th – 5th James Market News special report on Buy/Sell in Spring 2018.

Community

THE AGE (TUESDAY 24th July)

In The Age on page 8 is an article on a tremendous younger Australian – Sarah Rejman.

All the commissions James Buyer Advocates receive from selling advice go to assisting great Australian causes – be it the private rental initiative for homeless people through Launch Housing or one such Sarah Rejman in Tanzania. Sarah is literally a saint and by the way, she has three young children and is from EAST MALVERN.

Since 2006 James Buyer Advocate support is now well over $400,000, but more importantly, that represents hundreds of child surgeries (who cannot afford to get help that will actually fix their issues) or hundreds of Melbourne families NOT evicted due to a temporary crisis.

Here is a link to Todays Age article – click below.

AgeJuly24

Come to hear Sarah talk next week
(Wednesday, August 1st at 12.30pm or 6.00pm)

Less than 100 tickets left for each session and it’s an hour that may well change your life

CLICK ON THIS TO GO DIRECT TO TRYBOOKINGS for tickets.

11climbersAug1

Here is where you can donate to Sarah’s work

100% of your funds get to the source of the need.

It’s 11Climbers.org one of several Australian arms for Sarah’s work, that ensures 100% of your donation gets to the children in need of surgeries.
It’s tax-deductible

Sarah

RoundtheGrounds

Four auctions we attended on Saturday – not enough for a report, but enough to get a feel. We are seeing some early Spring trends already.

18 Page St Albert Park

Agent Quote: $2.5m to $2.7m

Shane Siemers

Crowd of 70 building to over 90 as the auction starts. Really well presented single fronted, double storey home that sold in 2015 for $1.875m. And has had a very nice cosmetic makeover since then. Crowd feels to have some oomph in it – and the agents are positive having just come from the Barrett st auction where it sold well with 4 bidders

And bids are called for :

  • Vendor Bid at $2.5m and call for rises of $10,000s
  • Bidder 1 $2.51m
  • And Bidder 2 in at $2.52m
  • Two bidders up to 2.59m
  • And a half time break is taken and Shane returns to announce not there yet
  • Quickly we are up 2.68m and $2.7m and 10 and ….
  • And now a 3/4 time break – yeah why isn’t it on the market?
  • Back out quickly and tells us we are close again – seemed pointless.
  • The so close wasn’t true – we weren’t that close and down to $5k’s
  • Oh and now we are in for another break at $2.74m and finally we are on the market and sold at that number.

32 Park Avenue  Sandringham

Agent quote: $1.85m to $2.035m

Basic but very liveable family home on a large above average block of (1081sqm) in B grade Sandy. All on one level and a good litmus test of how selling a home in this market over the school holidays is going.

Anyway it’s about to start with Stephen Wigley conducting proceedings in front of a fairly typical Bayside sized crowd of 50.

  • And bids are called for – the usual silence.
  • Encourages a $1.8m start – but nothing and so eventually a vendor bid of $1,850,000 and asking for $20,000 rises.
  • There is no intensity here – lots of agents – lots of looking around – nothing.
  • And so a break is called for as there is nothing else to do. Wow this is like half time at the footy – I reckon a whole team walked into the sheds (front door) and let’s see how many come back out.
  • The half time is over and the spiel starts again.
  • Just when I thought it was going to be a duck auction
  • $1.87m from Bidder 1
  • And a few seconds later Bidder 2 at $1.89m
  • After some effort $1.90m and back again with Bidder 2 at $1.91m
  • A bit of action albeit at the lower part of the quote.
  • Stephen is picking up both in his spiel and humour.
  • Wow a strong bid of $1.95m from Bidder 1
  • Bidder 2 at $1.97m
  • Bidder 1 back strongly at $2m
  • Well half way through this auction I didn’t see this – it’s solid.
  • And another break – no doubt to see ….. well actually I’m not sure why the break as Bidder 2 has scarpered off in their car.
  • Property is passed into Bidder 1 at $2m and no doubt will be sold to them – I assume at that price.
  • Sold for $2,025,000 a short time after pass-in.

31 Hobart Road  Murrumbeena

Agent Quote: 1.35m to 1.485m

Auctioneer: Matt Hurlston

606sqm – Basic Family Home on a good average block

I really liked his opening – it was honest, but reassuring and taking about yes the market has softened – but that simply means you can now get in if you want to.  I really liked his comments and calmness but all still with authority.

Good crowd of 70 people and after a really balanced and sensible opening spiel about the market and the specifics of the home – bids are called for.

  • Nothing
  • Vendor Bid of $1.3m and a $25k rise asked for.
  • Mmmm starting below the quoted range.
  • No real intensity here either at the start and a half time break is taken.
  • Back after the break – a comment we will place no above anybody who bids – I assume meaning the highest bidder.
  • This looks a good home – this feels a price issue.
  • Call it three times – once, twice and passed in – duck – no bidders.

Remains on the market.

141 Fordholm Avenue

Agent Quote: $2,300,000 – $2,500,000

Basic home being sold as a land offering on 943sqm in Middle Camberwell.

Crowd: 40 people

Auctioneer: Tim Mursell

  • Energetic auctioneer Tim Mursell takes to the crowd ready to sell what he has on offer.
  • The auction was kicked off with a vendor bid of $2,100,000… and waited for any bidders to partake.
  • Waiting patiently Mr Mursell reminded the crowd was on offer before placing another vendor bid of $2,200,000…
  • With the crowd refusing to participate half time was called… a lengthy half time.
  • Reopening the auction, bidders were told that if they bid, there will be no more Vendor Bids… again… no participation.
  • With nothing coming forward Mr Mursell passed the home in on one last vendor bid of $2,300,000.

Remains on the market.

Jul282018

Video

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