Market Wrap – Monday May 9th 2011

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We’re currently in what I’d term an ‘opportunistic’ market. An agent today quoted another phrase which I thought summed it up well – an ‘honest market’

We witnessed five auctions this weekend with only one property selling ‘under the hammer’ All were quoted ‘conservatively – all had multiple bidders; however the only one to sell without negotiation was a property that reached its reserve within the quoted range. A percentage were successfully negotiated after sale, however it’s clear vendors still have their sights set too high and price quotes aren’t reflecting true vendor expectation.

Therefore the fight between buyer and seller continues, resulting in a perfect negotiators playing field. Despite sentiment being cautious, there were good numbers at all the auctions we attended this weekend and the majority had multiple bidders competing. The press is reporting bumper stock; however the figures don’t match the online data and are dubious at best. A suburb by suburb breakdown shows most of this stock is located in the outer suburban areas where demand is naturally low, or in newly developed high rise apartments which are un-appealing to owner occupiers. Quality listings will always attract competition, however in a flat market, we/re able to take advantage of some great opportunities.

23 Vunabere Ave, Bentleigh

23 Vunabere Ave Bentleigh is a classic 3 bedroom clinker brick house on 754 sqm of land. Quoting 790-870K the auction was fairly well attended with a lively atmosphere. Opening on a genuine bid of 650K – (a good way from the quoted range) – the agent ‘cut to the chase’ with a vendor bid of 770K. With four bidders competing, it was a fairly swift auction. At 855K bidding slowed, and the agent went inside for a ‘not so brief’ half time break. I can only postulate he was trying to persuade the vendor to put the property on the market, because after what seemed like a good 7 minutes, he eventually returned and gave no indication we were even close to reserve. The auction pushed up a little further before passing in at 892K. Failing to get any further movement from the buyer via negotiation, the vendor finally agreed to sell at the passed in price of 892K

44 Holloway St, Ormond

44 Holloway St Ormond is a large corner block of land with an older style 2 bedroom property, and a vendor who was prepared to ‘meet the market’ The quoted range was 790-840K. Without even asking for an opening bid, the agent took the lead placing an immediate vendor bid of 790K. Asking for rises of 10K someone finally offered 800K. With seemingly no more interest the agent took his break to meet with the vendor. A few moments later he returned to announce the property ‘on market’. This revived things somewhat and going up in 1K moves, three other bidders decided to get involved. The price didn’t get far before the property sold under the hammer for 805K

36 Mortimore St, Bentleigh

36 Mortimore Bentleigh was another property that had been quoted conservatively but certainly didn’t have a reserve to match. A smart, modern, 5 bedroom family home, attracted a large crowd and 3 active bidders. Quoting 1.05-1.15Mil the auction opened on a vendor bid of 1.05Mil. When there was seemingly no movement from the crowd, the agent had to place another vendor bid of 1.1Mil before the action started. With healthy competition the price gradually pushed passed the quoted range. One buyer asked 3 times if the property was ‘on market’, however even though he had a pre-set reserve, the agent gave no indication market level was even close. At 1.23Mil the buyers dug in their heels and it passed in later to be negotiated for 1.3Mil

2B Evelyn St, Bentleigh

2B Evelyn St, Bentleigh is a small 2 bedroom unit the McKinnon. Quoted at 500-550K the agent struggled to get the ball rolling before finally placing a vendor bid of 500K. Only 1 bidder was prepared to show their hand by offering a bid of 510K. However with no competition the property was passed in to later be negotiated and sold for $535,000.

13 Maskell Street, Brighton

13 Maskell Street in Brighton – a luxury 4 bedroom town house quoting 1.7Mil + – presented the auctioneer with the unfortunate task of conducting proceedings next to a frequently traversed train line. Despite the noisy location, the auction was well attended with 3 bidders willing to take a role. Opening on a vendor bid of 1.7M the pace was painfully slow. The auctioneer had to place another vendor bid of 1.75Mil before the buyers got serious and the price struggled to 1.825Mil. Passing in at this level the property was later negotiated successfully to be sold at 1.875Mil

Catherine Cashmore

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