Monthly Property Update : September 2016
By | 4th Oct 16

The Spring market has started off strongly with property supply falling below buyer demand. While speaking with agents, we have repeatedly heard that they simply do not have enough properties to sell and at most auctions we attend we are seeing four to five bidders. We have been excited by some of the results we have helped our clients achieve this month. 16B Regent Street, Brighton East which was sold through our Vendor Advocacy service sold $411,000 over reserve for $1,511,000. The strong result showcased that single level Townhouses are in hot demand, ideally suiting downsizers. A client of ours sold their single fronted home located at 189 Alma Road, St Kilda East for $1,070,000. The property was purchased in 2008 for $550,000 and proved to be a wise investment. Another great result for a client was 26 Leila Road, Carnegie with the 3 bedroom home on 816sqm sellingfor $1,710,000. We helped clients purchase a property “Off Market” in 2013 in the same street for $950,000. 

First home buyers continue to struggle to join the property market as prices rise and most buyers are struggling to save the average deposit of $60,000. We recently contributed to an article published by The Herald Sun about the growing trend of buyers who are returning home to live with Mum and Dad for a short term stay in order to save. This is a trend I would suspect we will continue to see increase as many buyers need relief from paying rent. Returning home for many allows them the chance to save an extra $1,500 roughly a month without accounting for utilities. Wage increases have not been matched with the property market growth we have seen and for many buyers this is the only way they can afford to purchase their first home. To read the full article, please CLICK HERE. 

Melbourne’s median house value has had the fastest growth of any other Australian city in the past quarter as average house values have risen by $55,000. We are constantly hearing from buyers that they will sit back and see what the market is going to do. Many of these buyers have been waiting years to purchase and unfortunately will eventually be priced out of the market all together as prices seem to show little sign of pulling back.  To read more about Melbourne’s strong growth, please CLICK HERE.