Weekly Market Update - 9th October 2017
By Advantage Property | 9th Oct 17
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Melbourne’s market continues its solid performance and not much has changed as the clearance rate was again 74% from 790 auctions. The Spring selling season will mean there will be a lot more properties on offer with over 1000 on most weekends now that the AFL grand final is over. It was a quieter weekend with many vendors holding off their campaigns. We were on Channel Ten News talking about the booming Melbourne market and the Spring selling season bringing many more properties on offer for buyers but there will also be more buyers out there, so there will be more competition in the market place.
There was a recent article about Vendor discounting and whether there are any real discounts in the market at the moment. There were some suburbs that showed there are still some opportunities out there for buyers, mainly in the outer suburbs. I would argue that many of these properties had not been priced right from the start, with a higher asking price and testing the market to see if they can get a result and if they can’t, then they start to reduce their price until they get it to what is the real value or market value. We are not seeing much discounting at all some auctions that pass in may be opportunities as some vendors may have bought another property and be under financial pressure. Buying off market properties can be a great way to secure a property at a great price where vendors need to sell quickly. Read our comments in Samantha Landy’s article here.
Middle suburbs are the flavour of the month with many middle suburbs in the North going gangbusters. Areas like Reservoir, which is twelve kilometres from the CBD continue to grow and be in demand as buyers have been priced out of some of the inner areas like Preston and Thornbury. We saw that again on the weekend in Crookston Road, Reservoir where a house made it over the $1,000,000 mark again, selling for $1,055,000 and had strong demand with three bidders who were all moving from smaller properties closer to the city and going out a bit further to get more “bang for buck”. Reservoir has come a long way since my parents bought their family home in 1993 for $144,000 and this particular property sold for $90,000 in 1994, so it’s gone up eleven to twelve times over the journey of the last twenty-three years or so!
Please don’t hesitate to check out our website for more information about our popular Buyer’s Advocate, Sellers Advocate, Owner’s Corporation and Property Management services and our latest newsletters as well as our new future one bedroom Group Block opportunity in Brunswick East (approximately $295,000 each) and our Frankston one bedroom villa unit opportunity (approximately $250,000-$270,000 each), open for inspection this Thursday 12th October from 5:30pm-6:00pm.