Weekly Market Update 12th April 2016
By | 12th Apr 16

The clearance rate remained consistent at 75% over the weekend. We continued to see some great results achieved across Melbourne including 7/12 Market Street, West Footscray where six bidders competed for the two bedroom unit which sold for $600,000 with a reserve of $480,000. One of our vendor advocacy clients sold their Art Deco apartment in Albert Park under competition from four bidders for $688,500 after we had purchased it for them in 2001 for $293,000. For more about this weekend’s results and our comments in the Herald Sun, please CLICK HERE.

Family homes have continued to achieve great success as demand strongly outweighs supply. 9 Ivy Street, Hampton was yet another competitive auction, with eight buyers bidding to secure the property pushing the price $330,000 above reserve selling for $1,630,000. As development has continued throughout Melbourne’s inner suburbs the demand has stretched to the middle ring suburbs which offer larger homes on a full block for a more affordable price.  We have seen the supply of family homes lessen as split blocks have become common place and large scale developments are springing up where re-zoning has taken place. To read about what buyers want, please CLICK HERE.

Another contributing factor to family home affordability is the lack of people choosing to downsize. Many empty nesters choose to stay in their homes long after the property no longer suits their needs. This article recently featured the associated costs of selling and purchasing as well as the lack of appropriate downsizing options and reasons why many people are choosing to hold on to their family home. While emotional attachment will also be a contributing factor, many of the new developments being built do not meet the downsizer’s requirements such as the common request for single level dwellings. While some apartments with lifts offer an alternative for some, the often high outgoings per annum associated with such developments deter many traditional home owners. To read the full article, please CLICK HERE.