April Property Market Review

By Janet Spencer

Here is my April property market review.  I am finding the market patchy and dangerous for buyers.  Some properties are flying, reaching enormous prices and heated competition at auction.  Others are passing in, selling after and not quite meeting the Vendor’s expectations.

Interestingly, new REIV data for “the three months ended 31 March 2018 reveals that the median house price in Middle Melbourne* exceeded seven figures for the first time – $1,034,000 – an increase of 4.2 per cent from the previous quarter.  Overall, the median house price across metropolitan Melbourne rose for the eighth consecutive quarter, up 4.4 per cent to $855,000.”

I think that the downsize market is so hungry for decent stock, that when the ideal property comes up for sale, they will pay more than investors or first home buyers.  Usually, they have sold a house or property of greater value than the one they are downsizing to. So, they have extra money to spend on buying what they hope will be their final home.

Characteristics of value are;

minimal stairs,

direct internal access to the property from the garage,

good security,

close to transport,

close to shops,

good heating and cooling, and

preferably no Owners Corporation.

In Mitcham this month a property that met all these criteria was had only one bid put the property on the market.  The reserve price was $800,000 and the opening bid was $810,000.  “We are selling ladies and gentlemen if there is no further bidding”announced the auctioneer.  Well, there was further bidding.  Several parties clashed and drove the price up to $965,000.  Most bidders appeared to be over 50 years old and couples.  I am confident they had sold a house and were either moving to Mitcham or wanting to stay in the local area.

History was repeated the following weekend in Parkdale, where a  property marketed originally at $750,000to $830,000 had its quote range lifted to $850,000 to $930,000 during the auction campaign.  It sold to $1,100,000.  A large crowd gathered for this auction and again, it was the over 50’s bidding.  One couple walking back to their car after the auction was overheard saying, “gosh, we will struggle to buy anything at this rate”.

Of course we are active buying land, very select apartments and units, houses and even commercial property at the moment.  Its very important to know the current dynamic of the type of property you want to buy and at the budget range you want to buy in.  Each type of property, suburb, pockets within suburbs are performing differently at the moment.  The worst thing a buyer can do is assume the market is the same as it was 6 or 12 months ago.  They could be left homeless or overpaying. Not sure which is worse.

To discuss buying, selling or renting property in Melbourne or Victoria, don’t hesitate to contact me on 0418 101 146 or jspencer@buyersolutions.com.au

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