Smart buyers upgrade in Spring.
Over September’s first two weekends more than 1,290 auctions were recorded by the Real Estate Institute of Victoria (REIV). 751 homes were sold at auction with 270 passed in, 107 of those on a vendor bid. In the first half of September the clearance rate has averaged 76.5%, up marginally on August’s 76%.
The clear trend so far in September is continued recovery. Latest figures (CoreLogic) show Melbourne house values rose 1.4% across August alone, which is quite a jump.
Buyer Marketing had some very good recent outcomes for its clients.
52 Marine Pde. Abbotsford was purchased at auction on August 24 by Buyer Marketing for $1.2 million. The vendors were hopeful of $1.3 million on the day. An Age Domain full page editorial the next day quoted the tactical approach performed at the auction by Peter Fox and Buyer Marketing had worked in favour of our engaged client, getting a fantastic result for them.
14 King St. Fitzroy Nth, was purchased by Buyer Marketing via an expression of interest campaign on September 4 for $2.45 million. This was well under the vendor’s expectations, our clients were extremely happy with the result.
Agents are reporting a lot of upgrade activity as people take advantage of current discounted prices to upgrade to a better property. If finances can support it, the discount an upgrader gets when buying into a higher priced property, is bigger than the perceived loss by selling their current home.
Although Melbourne’s most expensive areas have had the biggest value falls during the downturn, (the inner east fell up to 16% and the inner south by 13% over the last 12 months), these areas are also set to recover the fastest.
Some big buyers are starting to appear again, in reserve busting mode. On September’s second weekend a three-bedroom beachside apartment in Port Melbourne sold for $4.34 million – a big $1.54 million above the vendor’s expectations. Moves like this can start to reset values in a precinct, in this case the highly sought after Beaconsfield Parade strip.
Principal Advisor &
Licensed Estate Agent
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