If truth is the first casualty of war, in real estate it rarely even gets as far as the recruiting office.
We’re hearing the whoops and hollers of agents celebrating a booming market, we’re just not seeing it. Not at the top.
What we are seeing is some sales, some duds and a heap of wasted ad money.
And even some whooping agents wandering the streets wondering where all the buyers went.
(Yes, they’re multi-skilled.)
Expressions of Disinterest. The deadline passes. “Negotiations are in progress,” and then quietly sink from sight. You may expect some to re-surface, re-polished, in the new year.
Those With The Money
They have it for a reason. They will not be hurried into mistakes that cost.
Two passed in without a bid and there’s a third on offer via EOI. So many people moving out of such a short street.
Some That Did
7 Sargood Street. Three bidders. Sold for $3.285 million
772 Orrong Road. Three bidders. Sold for $3.7 million
When price lines up with value, things happen (but we still don’t recommend the 5-minute look-then-buy method of the purchaser of Orrong Road).
One That Nearly Didn’t
25 Beach Street, Port Melbourne Four hands a-waving and still passed in at $5.25 million. Sold later for $5.375.
This has been happening from Brighton to Hawthorn. Multiple bidders who won’t rise to a reserve and the property is passed in.
Boom behaviour? No. If anything, it’s the sign of a softening market.
Will You Have Ads With That?
The side-order that agents depend on. The ads that promote their clients’ properties and — above all — the agents listing them.
There are some trophy wallflowers that have been waiting to be asked to dance for most of this year and the way things look, they could still be there this time next year. Price, people. It’s the price.
Rover, It’s Over
Unless something really unexpected happens, there’s nothing on the horizon that would justify interrupting your pre-Christmas preparations. So…
Until next year?
And here’s hoping yours is cheery.
Bayside: The Rites of Spring
… are done. Just two weekends to go and there’s little on the horizon that should surprise.
The message? Heads rule. The emotions are playing lesser parts while buyers look for true value. While headline clearance rates are still being shouted about at well above 70% what we’re seeing is well below that. No hurry.
Long-term, that’s healthy. Booms rarely work for anybody.
What has changed is the number of sales being made. Around six months ago, buyers started moving back in and that took some by surprise — some early results were well above expectations.
Not now. Buyers are doing their homework. While the plums are quickly picked, bruised fruit is usually left to fall — and while at first sight there appears to be much to choose from, the plums are still scarce.
There are always buyers who will take what they can (and may regret it) it’s likely that anything overpriced this year will become available next year at a more realistic price. Patience wins. Again.
Crystal ball time.
At Bayside’s mere-mortal strata we expect this year’s gains to be consolidated. Nothing spectacular. A steadying market at lower- to mid-levels. Only the exceptional walking off the shelf — otherwise sellers will have to meet buyers.
The very top end will be — as it usually is — a law unto itself but a recent handful of sales (including 10 Mulgoa Street at, we believe, considerably less than the $10 million originally hoped for) suggests we may see more action than we have for a while.
And it is time some got off the shelf. Surely by now their owners have had long enough to realise that rare as their offering may be, too much is still too much.
And here’s to you
Thank you for being with us through the year and for your feedback. We’ll be around over the break but unless there’s a reason, won’t report again until early February.
Stay healthy and happy until then.