2nd August 2010 - Predicting auctions 'like tipping a horserace'

There were 561 auctions reported, which is about average for each week of the past month.
Although low compared with autumn, it is still a high level for winter stock, especially when compared with last year’s July average of 332.
The weekend’s clearance rate rose to 70 per cent for the first time since mid-June.
Leonardo Persichetti from Woodards TBM said stock seemed to be drying up, but anyone genuinely in the market was still out there to buy. - Click here for the rest of the article (PDF Format)

26th July 2010 - Calmer market still shows some rough spots

WITH the feverish bidding of a few months ago cooling, the market seems to be stabilising at a more sustainable level.
Stock levels are still well above last year, but the clearance rate appears to be steadying, having remained in the mid to high 60 per cent range for the past few weeks.
Falling below the February high of 87 per cent, it shows signs the market could be easing into what agents say is a more typical and healthy state.
The 560 auctions reported this past week generated a clearance of 67 per cent. - Click here for the rest of the article (PDF Format)

19th July 2010 - Market Moves Confirm Rises

ELECTION campaign aside, Melbourne's real estate market was buzzing with its own news after the release of the June quarter median prices.
According to the REIV, Melbourne's median house price increased 8.5 per cent to $559,000, with demand in the more affordable suburbs driving the price growth.
None of the top 20 performing suburbs had a median house price above $1 million. The biggest increases were recorded in Dandenong, Rosebud, Broadmeadows, Footscray and Glenroy.
As if to demonstrate the market's strength in these suburbs, the weekend's 525 auctions saw a rise in the clearance rate to 72 per cent, compared with the 67 per cent achieved last week. - Click here for the rest of the article (PDF Format)

12th July 2010 - Seeing the bigger picture

REMEMBER this picture? It might look like a museum image of prehistoric man, but it's in fact a rock located in the Cydonia region of Mars.
Scientists made the discovery of the ''face on Mars'' in July 1976, while searching for a suitable landing site for Viking 2 Lander. Wanting to give the public a familiar looking feature, they released this image to the tremendous delight of tabloids that ran with headlines suggesting ancient intelligent life had been found on Mars. - Click here for the rest of the article (PDF Format)

12th July 2010 - Wind whips city, but market is sailing along

MELBURNIANS were more likely to be blown away by high winds than the weekend’s auction prices, which seem to have calmed down over the past couple of months.
From a reported 528 auctions, there was a clearance of 68 per cent, which still represents a healthy property market.
Buxton’s Paul Podbury said there was plenty of demand for real estate, but prices were now falling more within their quoted range.
He said most auctions were now averaging around two or three bidders, so to have five turn up to one of his auctions in Carnegie was unusual. - Click here for the rest of the article (PDF Format)

11th July 2010 - Race is on to secure top quality

A collective sigh of relief was heard across the market this week as the Reserve Bank of Australia chose to hold off on another interest rate rise. It’s the second month in a row the RBA has chosen to keep the cash rate at 4.5 per cent, giving the market its first real breather after six near-sequential rises from a 49-year low of 3 per cent in September.
Of course, the decision to ‘‘hold’’ was more about global financial conditions, inflation and other economic factors than giving home owners and would-be home buyers a break, but it’s good news nonetheless for punters and the property market.
Conditions have been notably patchy lately, with buyers free to pick and choose among a wealth of stock— and many are taking their time about it and driving hard bargains to boot. - Click here for the rest of the article (PDF Format)

4th July 2010 - Working out what to expect

Putting a property up for auction is always a bit of a gamble but, until recently, the odds of making a sale were heavily in favour of vendors. Judging by the number of properties now passing in after little or no bidding — and the sky-high price expectations revealed during later negotiations — many vendors are struggling to come to grips with just how much the game has changed.
About one in three vendors are not making a sale on auction day.
The number of properties passing in on vendor bids has also doubled since Anzac Day — which is when the market is generally agreed to have "turned" — with about 20 per cent of all auctions now ending this way. - Click here for the rest of the article (PDF Format)

3rd July 2010 - Lights out at top end of town

Winter gloom descends on Melbourne's prestige properties, writes Karin Derkley.
How things can change in just three months. In March, Melbourne's top-end property market was roaring. Property prices of more than $1 million had charged up by 25 per cent in little more than 12 months as bidders fell over themselves to push prices well above the reserve. After the doom and gloom of 2009, it seemed the prestige market was playing catch-up.
During the past few weeks, winter has closed in. Clearance rates on high-end properties have collapsed from 70 per cent to as low as 40 per cent in some areas. Prices have dropped by as much as 10 per cent since March. - Click here for the rest of the article (PDF Format)

28th June 2010 - Melbourne rain makes the plain sales harder

In a weekend of rain and sunshine popular properties basked in the light, while those less appealing passed in on dampened spirits.
There were 827 auctions reported, with a clearance rate of 65 per cent. Wakelin Property Advisory director Monique Sasson Wakelin said the lower clearance rate had created a window of opportunity for buyers.
Although she detected a drop in bidding activity, Ms Wakelin said it was not evidence of "a market about to fall on its face" but the result of an unusual set of circumstances, including a significant increase in supply. One of the top-selling properties was a five-bedroom home on 770 square metres at 1 Terama Court in Glen Waverley. - Click here for the rest of the article (PDF Format)

27th June 2010 - Rise in reports of no-bid auctions

Most vendors seem to be finally getting the message that Melbourne’s property market has turned — and not in their favour.
Stock levels are forecast to decline in July, which isn’t surprising in the light of growing reports of no-bid auctions and lacklustre sales results, especially for second-tier and lower-quality properties. There’s an average of 570 auctions scheduled for each of the next three weekends, well below the record number of about 800 a week seen in June. - Click here for the rest of the article (PDF Format)

21st June 2010 - Winter warms up with record stock levels

WINTER auction action heated up at the weekend after a record number of properties were put up for sale.
Seasonal stock levels were at their highest since 2003, with 942 auctions and another 449 private sales. But the clearance rate was at its lowest since February 2009, slipping to 68 per cent, in a reflection of the changing market conditions.
With a greater range of properties on offer, buyers are being more selective, resulting in some mixed results, particularly in the upper levels of the market.
Out of 147 million-dollar properties up for auction at the weekend, only 78 sold, generating a clearance rate of 53 per cent. - Click here for the rest of the article (PDF Format)

20th June 2010 - Supply surges as demand weakens

There have been bigger auction days this year but none has been as closely watched as yesterday. A staggering 885 properties were up for sale , the heighest stock level ever recorded for a winter weekend
With a wealth of choice for buyers, the clearance rate, unsuprisingly, took a hit. The Real Estate Institute of Victoria reports that 67 percent of properties sold. That's the lowest it's been in about 18 months. - Click here for the rest of the article (PDF Format)

14th June 2010 - Market has long weekend breather

WHILE Melburnians were glued to the World Cup action in their lounge rooms, the real estate market had a much-needed rest after an active few weeks.
Out of a reported 268 auctions on the weekend, the clearance rate rose to 77 per cent— the highest since the start of May.
It is also the most number of auctions held on the Queen’s birthday weekend since at least 2003, continuing the trend of high stock levels this year.
There were 2286 auctions in February and 2931 in March, with both months recording a strong clearance rate of 85.6 per cent. - Click here for the rest of the article (PDF Format)

13th June 2010 - Lowering expectations may pay off for vendors

RIGHT from the start of 2010, it was pretty clear that something remarkable was about to happen in Melbourne’s property market.
No sooner had the Christmas holidays passed than would-be buyers were back in the market in force, swamping open-for-inspections and snapping up what few properties were available so early in the year. Back then, Market Wrap reported that home hunters were having to queue just to get into the opens, with many properties netting dozens of people passing through in a matter of minutes. It’s worth remembering because these early signs of pent-up demand foreshadowed the record setting market conditions that quickly followed auctions with a half-dozen bidders, a sky-high clearance rate and soaring prices. - Click here for the rest of the article (PDF Format)

6th June 2010 - Selective Buyers Still Fuelling Demand Around City

MELBOURNE’S metropolitan wide clearance rate may have been sliding in recent weeks, but that does not mean the market is moving at the same speed in every part of the city.
In fact, demand in some quarters and for some properties is still as insatiable as ever.
Take the case of a double fronted, free-standing Victorian on Stanley Street in Richmond, which sold yesterday for a stunning price despite being an unliveable wreck.
More than a decade ago, police seized the property as part of a crackdown on a major drugs operation, which had seen the interior stripped to set up a hydroponics farm for growing marijuana.
Sold by the authorities in April 2000 for $420,000, the four bedroom house has reportedly sat untouched since. - Click here for the rest of the article (PDF Format)

10th May 2010 - Market Cools at the top end

Whether it's the impact of interest rate rises, high stock levels or a last-minute rush for Mother's Day presents, Melbourne's property market cooled slightly over the weekend.
Easter aside, this weekend's auctions produced the year's lowest clearance rate so far of 78 per cent.
There were 841 auctions reported; higher than last week's 812, which produced a clearance rate of 80 per cent.
But according to agents, such as Noel Jones group chairman Adrian Jones, it's a small blip in an otherwise healthy market. - Click here for the rest of the article (PDF Format)

3rd May 2010 - Some signs of stabilisation in frenzied market

HUNGER for Melbourne property remains insatiable, as buyers continued to snap up real estate at the weekend despite a boost in stock levels.
The clearance rate dropped slightly, to 81 per cent, from a reported 812 auctions - about 300 more than last week.
Advantage Property Consulting's Frank Valentic said a two-bedroom Carnegie property may have set the record for an apartment in the suburb, after more than 10 bidders pushed the selling price to $627,000. He said the property sold above expectation, as another one in the block had sold six months ago for $450,000. - Click here for the rest of the article (PDF Format)

8th August 2010 - Due diligence and good legal advice help avoid pitfalls

The idea of spending half a million dollars on something you may not lay eyes on for two years would leave most people feeling a little uneasy.
After All, you wouldn't buy a wedding dress without trying it on for size.
But as more and more Victorians embrace apartment living, a growing number are preparing to take a punt on buying off the plan - Click here for the rest of the article (PDF Format)

18th July 2010 - Market Report

INVESTORS TAKE CENTRE STAGE YESTERDAY'S sunny morning weather left plenty of Melbourne vendors with that warm feeling that only a bonus hundred thousand dollars can bring.
The auction clearance rate was still well down on the same time last year at 72 per cent, but had improved from 68 per cent last week.
Agents reported sales at up to $420,000 above reserve in a day where developers and investors took centre stage. - Click here for the rest of the article (PDF Format)

18th July 2010 - ‘Unsustainable’ growth sparks predictions of a market fall

NEWS of a further quarter of astronomical property price growth will send shivers down the spine of anyone yet to set foot on the real estate ladder.
The latest Real Estate Institute of Victoria report shows the cost of a middle-of the-road Melbourne house rose 8.5 per cent to $559,000 in the three months to June 30.
While the figures appear to be a new nail in the coffin of affordability for first-home buyers, a growing number of property economists said they were further evidence of a price bubble inflated to bursting point.
Gavin Putland, a director of Melbourne-based Land Values Research Group, was even willing to give the impending crash a time-line. - Click here for the rest of the article (PDF Format)

17th July 2010 - Search for a dream home will cost you

HOUSE hunters who spend months looking for the perfect home might end up missing out altogether.
The median price of Melbourne houses has risen from $405,000 in the March quarter of last year to $559,000 today - that’s $2567 a week.
The rate of the rise was even faster in the three months to June 30, according to figures from the Real Estate Institute of Victoria.
There are very few buyers who would have the savings power to match this rise.
Buyer advocate Ian James, of JPP Buyer Advocates, says buyers are often better off settling for second-best and trading up later. - Click here for the rest of the article (PDF Format)

17th July 2010 - Median price at $559,000

MELBOURNE’S median house price rose nearly $500 a day to hit a record high of $559,000 in the June quarter.
The 8.5 per cent rise since the March quarter pushes the home ownership dream further out of reach of many young buyers, Real Institute of Victoria figures show.
The new median is up from $515,000 in the March quarter and represents a jump of $3385 a week, or $484 a day.
Buyers advocate Ian James, of JPP Buyer Advocates, said it was virtually impossible for young people to save as fast as property prices were rising. - Click here for the rest of the article (PDF Format)

12th July 2010 - Good time to buy

HOME buyers are in the bargaining box seat as record numbers of properties go under the hammer for winter.
Stubborn hopefuls willing to brave the chill are competing against fewer bidders and paying more realistic prices.
And those who don’t buy on auction day are in a strong negotiating position to strike a deal on passed-in properties.
JPP Buyer Advocates’ Catherine Cashmore said the tables had turned for some buyers. - Click here for the rest of the article (PDF Format)

11th July 2010 - Market Report

Fewer auctions lift clearance rate THE winter stock drop continued yesterday, with about 450 properties up for auction.
But buyers faced the cold and their efforts saw a lift in the clearance rate to 68 per cent.
Agents and buyer advocates reported strong crowds at auctions, with particular interest in apartments. Fletchers Real Estate director Tim Heavyside reported one property in Zetland Rd, Mont Albert, that sold for $228,000 above its reserve of $1.15 million. - Click here for the rest of the article (PDF Format)

4th July 2010 - The Family Unit

THE Australian dream used to be a broad patch of turf in the suburbs with a corrugated shed and outhouse, a Blue Heeler and a Hills Hoist.
If you were lucky, a kit home on an acre at Bonnie Doon awaited in the summer for some murky water lake swimming with the kids.
But the ’50s rush to the suburbs has been replaced by a race to city lifestyle as innerurban nooks are snapped up under fierce competition.
Even holiday homes are becoming holiday townhouses.
In many areas apartment prices are overtaking house prices in the same vicinity as a growing number of Melburnians embrace the trend towards small and modern. - Click here for the rest of the article (PDF Format)

27th June 2010 - Market Report

BUYERS SELECTIVE AS STOCK SHRINKS STOCK eased from last week’s mega weekend, with the clearance rate dropping slightly to 65 per cent.
Buyers were selective as agents reported mixed results in crowd sizes and bidding competition. Alistair Craig, of Jellis Craig, said the market had cooled slightly, but it was not a symptom of a bubble burst. "It is now more normal market — it is a bit more of a level playing field for buyers and sellers," he said. Robert Larocca, of the REIV, said this week closed one of the strongest Junes on record, with the market absorbing the large number of listings. - Click here for the rest of the article (PDF Format)

20th June 2010 - It pays for homeowners to learn the rules of successful property renovations

THERE once was a time when DIY home improvement shows had every Melbourne family craving a rock garden and dressed-up Bunnings water feature just to keep up with the Joneses.
Now the half-varnished deck out the back sits in decay as the family congregates in the kitchen to share their replica of the latest MasterChef chicken dish.
Home improvement is considered so 2005 for many Victorians who have forgotten the virtues of the value-added property. - Click here for the rest of the article (PDF Format)

19th June 2010 - Putting the buyers on a level playing field

A buyer's advocate can guide you through the auction minefield, writes Susan Cowen

They are the Robin Hoods of real estate. They are the defenders of the underdog.
They are men and women who work for the buyer and stand up to real estate agents as they strive to secure properties for the lowest possible price.
Buyers' advocates are the increasingly common feature at auctions these days, much to the chagrin of estate agents. - Click here and here for the rest of the article (PDF Format, 2 pages)

14th June 2010 - Sellers rush to auction in cool market

A COOLING property market has not put off winter sellers, with a record number of homes for auction next weekend.
REIV spokesman Robert Larocca said 1000 properties would be auctioned this coming Saturday and Sunday. "This is a record for Melbourne in winter . . . the sheer number of properties has affected the clearance rate," he said.
The clearance rate for the Queen’s Birthday weekend was 77 per cent, up from last week’s low of 70 per cent, but down on highs of about 85 per cent earlier this year.
Mr Larocca said more expensive areas of Melbourne had been affected by a reduction in demand, while there was less change in the lower to middle market. - Click here for the rest of the article (PDF Format)

13th June 2010 - Market Report

CLEARANCE RATES LIFT ON LAST WEEK AUCTIONS over the long weekend dropped to about 250 yesterday ahead of next week’s predicted record breaking sale flurry.
The REIV’s Robert Larocca said about 1000 auctions were expected next week — far more than any other winter weekend on record.
Yesterday’s clearance rate reached 77 per cent after last week’s slump to 69 per cent. - Click here for the rest of the article (PDF Format)

30th May 2010 - Market Report

YESTERDAY: AUCTION RATES COOL DOWN THERE is no doubt six interest rate rises since September and unusually high auction numbers — about double this time last year — are affecting the real estate market.
This week’s results, while still encouraging for sellers, tell Key most homes are drawing fewer prospective buyers than they did pre-May.
For the fourth consecutive week, the REIV’s auction clearance rate drifted down from its May 1 peak of 82 per cent.
This week it fell 2 per cent, to 73 per cent. - Click here for the rest of the article (PDF Format)

26th May 2010 - No sign of bust, Mordialloc-Chelsea agents say

REAL estate agents in the Mordialloc-Chelsea area have dismissed speculation Melbourne’s property price boom is set to burst.
With interest rates rising and auction clearance rates dropping this month, many commentators have predicted the start of a market downturn.
But Biggin and Scott Chelsea director Andrew Purton said prices would keep increasing because housing stock levels remained low.
"Winter and pre-election times traditionally tend to take some of the heat out of the market, but things are still looking very positive," Mr Purton said. - Click here for the rest of the article (PDF Format)

11th January 2010 - No sign of bust, Mordialloc-Chelsea agents say

A SHORTAGE of homes for sale is expected to fuel Kingston house prices by up to 10 per cent this year.
Malcolms Real Estate chief executive Frank Hellier said stock turnover was about half of levels between 2005-07, prompting furious competition among buyers.
"I have never seen a shortage as bad as this in my 40 years of real estate," Mr Hellier said.
"The supply is probably at an all-time low." - Click here for the rest of the article (PDF Format)

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17th June 2010 - Get a buyers agent on side

The founder of JPP Buyer Advocates, Ian James, likes to tell prospective clients the following tale to convince them of the value of engaging him to buy a property for them.

"I have had three judges as clients and asked them all this question: if a husband came to the divorce court representing himself and his wife came with a Queen’s Counsel, what would you do? All three judges said they would stop the proceedings and explain that the husband was a very foolish man and needed representation."

More than 99 per cent of real estate vendors are represented by agents, yet most buyers are unrepresented, according to Real Estate Institute of Victoria (REIV). - Click here for the rest of the article (PDF Format)