Market Comment – Monday October 19th 2009

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There were just over 600 auctions at the weekend and 4 out 5 sold. On top of this 734 properties sold by private sale according to the REIV. With over 1000 auctions scheduled for next weekend agents all over Melbourne are busy shutting down as many sales as possible.

Whilst selling agents enjoy the street theatre of an auction and the publicity amongst the neighbours (their next potential clients), they also know that with a finite pool of purchasers it can sometimes be better to shut down a sale rather than only have one or two bidders.

For purchasers the equation is similar. If you can secure a property at a fair and reasonable price before auction you should; especially this week. If you are lucky and most potential purchasers go to other auctions then you might pick up a bargain. But if you are looking at good property there may be a huge amount of potential bidders at your auction. There are always risks as to which way to go.

The next 6 weeks will be a frantic lesson for the uninitiated in real estate. With our interest rates going up due to the unbelievable performance of our economy, the only way for property prices to move seems up. I would assume we will see a massive jump in prices during February and March next year and this will be on everyone’s mind between now and Christmas. For those who can buy this year, they will be able to both relax from the hunt and also bask in the upward tilt of the market.

If you are in the market for a property to live in or as an investment, give us a call for a no obligation appointment.

Ian James

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.