With only a 1,000 Melbourne auctions last month, stock levels are at an all-time low, and it is unlikely there will be any change in the short term. The Victorian Government announced last week that private inspections were over for occupied properties and the search got a whole lot harder.
But yesterday the State Government acknowledged they couldn’t leave hundreds of people “stranded”, unable to look at houses and therefore unable to buy homes. Private inspections were again re-opened, and common sense prevailed. After all, who would commit to such a vitally important purchase sight unseen?
Sellers have “put the cue in the rack”, they won’t spend money on advertising/marketing and playing a waiting game. HOWEVER, there are still a large number of people who NEED to sell due to circumstances, maybe divorce, downsizing or upsizing.
The market is still functioning; agents; buyers and sellers are adapting to a very different market. There are buyers and sellers who NEED to transact now, and there are some great opportunities for both buyers and sellers in this turbulent time.
As advocates, we help buyers and vendors alike manage today’s “different” sale/purchase process. Call us for a chat anytime.
As agents, buyers and sellers all adapt to the new conditions; one thing has become clear….for now. Auctions are out and replaced by Expressions of Interest (EOI) and private sales.
The auctions you see now all were locked in pre-pandemic. Even so, the REIV still report an 89% clearance rate; but with a 77% drop in auctions from the same time last year!
The more important number is 353 WITHDRAWN before the scheduled public auction – this screams a vendor message “we are not selling until we know what’s gonna happen”! Sellers won’t list or spend money on marketing until they know more. Post-Easter autumn auctions will gradually build up again, but not right now.
Counter to that is interest rates are at a lifetime low, demand is still there for now and quality properties are even harder to find than before. And a big plus; peoples genuine needs (not wants) for housing has been building up for months.
So for now? Its EOI’s, private sales,off-market and pre-market sales if you need a property. Buyers advocates play a more prominent role than ever, finding off-market, pre-market homes AND negotiating transactions on listed private sales properties.
Call us for a chat and discuss your many opportunistic options for buying or selling now.
Because of the absolute need for people to buy and sell houses, the real estate industry had to adapt fast to the new Covid-19 restrictions.
We attended our first on-line auction – a simple process using the conferencing software ZOOM – and auctioneerJohn Bongiorno and his team at Marshall White conducted the auction for 4 Erindale Avenue, Ripponlea.
Like an on-site auction, you can see everyone attending, know who is bidding, and of course, all the legal auction requirements still apply.
So just a handful of days after the Australian Government banned all on-site auctions the first on-line auctions got underway on Saturday, March 28th 2020.
How did Ripponlea go? Well, it passed in, and the last bidder bought after post-auction negotiations.
By the way, although the auction level was incredibly low as the industry quickly adapts, the clearance rate was 90% (Souce REIV) on 363 auctions, about a third of the last year’s levels.
So what’s gonna happen? A friend often asks me this general question. That question is so relevant to real estate right now so, barring a complete lockdown of all activities, here’s “what is happening today” – which may be different tomorrow next week.
Consumer Affairs Victoria has confirmed that private inspections by appointment can continue. Private meaning one on one with the agent. And auctions via online methods can continue.
REIV President Leah Calnan said “The REIV has been trialling online auction platforms and there is no doubt electronic auctions will come into play shortly. Many agencies have already invested in online platforms for property auctions and have been trialling them in recent months, and houses will continue to be sold in Victoria. The Victorian Real Estate Sector is prepared to do its part to help fight Covid-19. The Victorian Real Estate sector is a flexible, innovative, and resourceful industry capable of dealing with any problem.”
We think this is spot on.
“Local agents are turning to technology to satisfy the high demand in Victorian real estate, with virtual reality inspections, and transactions conducted over the phone and electronic document signing over the internet becoming commonplace. People still need to buy and sell homes, and the industry will quickly adapt to new technology and private viewings of properties.”
If you are thinking about buying or selling property, call us for a chat.
In these incredibly trying times, everything that was normal no longer is. Take the laws of supply and demand and how that plays out in the property market right now.
Supply – Good stock is hard to find, and it won’t improve for a while.
Demand – demand is still high for A-grade properties; nothing has altered. And we think more and more people with money will want to live in Australia.
Costs of funds – certainly the lowest in our lifetime, and liquidity is not an issue.
Sentiment – now this is the wildcard, the intangible that you can’t measure, touch or feel, it’s just there. Right now, the Covid-19 virus has everyone worried, altering all the norms.
So, what to do now?
If you are buying and selling at the same time, you may well be better off. If you are upsizing, your changeover may be less if both properties fall at the same %. And remember, the banks want your business. A-grade properties always do better than B or C grade, and with all the above in play, there will be new opportunities, and we are here to help you capitalize on them. So if you have to, need to or want to buy (or sell), give us a call and we will meet (via Skype for now) and explain A Grade properties and how to find find the right one.
Guy Angwin: 0419 022 998 OR Geoff Briscoe: 0419 740 351
You ever wondered how a Buyers Advocate could help you – strategically and financially?
Last week we bought at auction a warehouse apartment on behalf of a client.
Our due diligence revealed a $950,000 roofing and guttering issue NOT in the Section 32 and one other major red flag.
❌ 1st Red Flag: Our inspection and research revealed a $500,000 restoration to the exterior heritage facia – red flag removed as the Body Corporate confirmed the sinking fund had it covered.
❌ 2nd Red Flag: On the eve of the auction a $950,000 quote for roofing and guttering was revealed – a big red flag HOWEVER we negotiated with the vendor to absorb the costs of $20,000 and removed the red flag!
Because of the above two potential red flags, many people may have been put off by bidding – who wouldn’t be!
But with our research, pre-auction contractual negotiations and due-diligence, our client bought the property well under their budget and with the full confidence they were making a sound well-informed decision.
Thrilled buyer – and ela property advocates delighted to be involved!
Guy, we are writing to sincerely thank you for your assistance in purchasing our home over the past 6 months. You have been consistently positive, calm and competent in a crazy market. You gave us information as we needed it, helped us clarify the kind of place we wanted and made us realise when we were on the wrong track. You fought hard for our interests and ended up winning us a place in an off market sale that took considerable negotiation skills. We would definitely engage you when we are buying a property again and wouldn’t hesitate recommending you to our friends. Thank You
“Guy was a great help to us acquiring a commercial investment property. We were relatively inexperienced and Guy ‘held our hand’ along the journey during which he taught us what properties were appropriate for our long term investment.
He understood our requirements, price range, anxieties and importantly was an excellent communicator and true professional. We saw many properties over a period of around 12 months which helped us finally focus on the property we eventually acquired.
Guy was tremendous in his use of ‘due diligence’ and how to best manage the complex system of agents acting on behalf of vendors. He has a great network of various professionals he utilised in assessing properties on our behalf. Once we acquired the property he was able to help us with interviewing managing agents and negotiating an improved outcome on our behalf.
On a separate issue Guy was very helpful to us in selling a domestic property in a relatively painless way that achieved a very good outcome. He used the professionalism outlined above to manage this during a time Melbourne house prices were falling. We would not hesitate in recommending him to any property investor.”
Another great Vendor Advocacy result for our clients at 6 Somers Street Bentleigh. ela Property Advisory and Jellis Craig Bentleigh just completed this sale achieving $250,000 above the range estimate. In only 10 days the property was prepared for the market and open for inspection – and sold within 2 weeks! Trent Collie and his team at Jellis Craig did a terrific job for our clients – congratulations Trent! Thrilled for our clients and another example of the difference we can make as vendor advocates