Respond v React

by Gina Kantzas and Mal James

Saturday, February 13th, 2021

Market in a Minute

We sympathize with all you Valentines and those businesses who were banking on them – we hope you can make the best of the less than ideal. Hang in there!

To Inner Melbourne Propertarians!

How should you react to this current situation if you are actively involved in buying and or selling right now?

A Smart Start

Maybe respond rather than react could be a smart start.

From what we can see, agents are responding quickly, decisively and smartly.

The auctions we had involvement in today, have all been delayed. We agree with this strategy.

Why?

Zoom Boom

Despite the boom in zoom, auctions are still considered best when run in person, face to face.

This may well change as it has with Amazon and on-line shopping, but for now the industry thinks STREET auctions – otherwise this weekend’s postponed street auctions would have already been ZOOM.

So the go-inside-half-time break pause is now several days, rather than several minutes.

Basically, the selling agent logic in delay, is to give everybody on all sides time to regroup and feel comfortable and that seems a sensible approach.

How are you responding if you are looking to buy or sell right now?

Better or Worse

Are you in a better position if you are a buyer or seller now than 48 hours ago?

The case to say buyers may be more nervous and less likely to bid strongly on your home due to lockdown uncertainty can be countered by; other buyers being more nervous about future lockdowns, prior to widespread vaccines and they may indeed go harder to get the security of a home.

ADVICE to BUYERS: Remains constant – if you really want it, have done your due diligence, then now is the time to buy. If the home is not what you really, really want then now is the time to wait and keep looking.

ADVICE to SELLERS: Listen to your agent – no, not just their words, also their actions and general patter. Are they focused on your best interests or an inflexible timetable? – LISTEN with your eyes and your mind as well. Good agents should be out front of this advising you, not waiting till you ring. However, really it’s hard to see how it should be anything else other than steady as she goes. More info is needed before you go changing much.

Delay is OK

Delaying a week is ok. Don’t overpay or undersell. The market in that $2m to $6m range has strength and feels on good foundations – long term interest rates, COVID management, Melbourne lifestyle, work, politics, safety, education……It all seems positive.

If your auction is still going ahead today – your agent already has a zoom plan and you will know it and hopefully feel comfortable. If it doesn’t work, regroup and respond, ahead of react.

Auctioning next weekend – remember the demand bell curve – most of your serious buyers already know about your home and have been through. It’s a matter of your agent keeping them comfy and maybe this coming Friday becomes the new open day.

Starting a major campaign next weekend – your livery is already out there on the internet –stay balanced and keep moving ahead. If your internet footprint hasn’t been established, maybe wait a week and launch a week later, if we get the all clear from Dan mid-week?

For us, the key is to not move too far away from an agreed sensible course – well not unless a great opportunity presents itself.

Market Strength

Right now the $2m to $6m sector feels very strong from Bayside to Boroondara, from Port Phillip to Stonnington.

A $10million auction at 16 Park St Brighton today – sold over $10,000,000. Andrew Campbell and Victoria Gregory.
47 Aintree Rd Glen Iris – John Manton and Fiona Ansell-Jones – 10 days before auction mid-week – 4 bidders. Sold over $3,000,000.
22 Kirkwood Ave Sandringham – Michael Martin and Mark Earle – just over $3,000,000. Solid number for what it is.

A number of homes are selling before auction and well above the quote, a sure sign there are more buyers than sellers.
Stock levels are lowish compared to buyer levels – crowd numbers per OFI.
Some secondary and overpriced homes – the fringe; are getting offers and signatures.

Talk Better please

Our only property market concern is those economist folks are now saying things will be really good in property in 2021. On their past success records this almost guarantees things will be the opposite and really bad (haha).

Mr and Ms Economist you really need to lift your advice game. The patter to the newspapers, for a free headline, remains very unhelpful, even when positive.

Why?

For the most part, you’re wrong.

But it’s more – it’s the type of advice and how it’s given, it’s unhelpful to claim with some surety a number. What about general sentiment and some riders on fallibility of predictions.

Can we suggest a book – refreshing in its honesty and helpfulness, especially for buyers and sellers in times of uncertainty (which is all the time?)

It’s better advice than you currently get from public economists as a whole.

The Psychology of Money – Morgan Housel.

You're all our Valentine

Anyway if you can

walk your walk,

and dream a dream.

Cos nothing’s as bad as it seems.

To all our valentines,

Perhaps a few in gloom,

Raise up your heads

and life can be a b(l)oom.

5 days is hard for some,

but easier for me.

As I live in Melbourne,

Not interstate or over the sea.

To our health leaders,

we give you your due.

And to all Victorians

Our family says thank you.

Take care – it’ll be ok.

See you in our red jackets hopefully next Saturday.

Middle Way

A short video from Randall on last week’s Marketnews article

From Kathy's Desk

Dear Anne and Mary,

It was lovely talking to you both just now about the implications of Heritage overlays, precincts and planning zones. Please feel free to message us with any other questions that you may have.

As promised, please find below my rough drawing that highlights the different suburbs and heritage Precincts in Boroondara. Please note that this drawing was drawn freehand, is not to scale and was created to include information relevant to my property searching. It includes some, but not all, parks. I hope it helps you identify the relevant areas that we discussed.

Kathy