Hi ,
 

As we come to the end of the first quarter for 2019, we can certainly see that we are in a different real estate market to the one that peaked in November of 2017, and even to how things were tracking back in 2018. 

Many Melbourne suburbs have experienced softening of prices, with homes in the inner south (down 12.4%), inner east (down 15.1%) and outer east (down 11.2%) really feeling the effects of a slowing market across the past 12 months.  This is particularly evident within the premium quarter of the market ie: more expensive homes.

With the royal commission now complete, the findings handed down have only further contributed to uncertain market conditions and the nervousness many buyers find themselves feeling.

Access to cash for many buyers is still tight, so with homes for sale continuing to hit the market, a reduction in buyers looking to buy or indeed, fewer buyers able to buy or shopping with reduced budgets, this has resulted in homes taking longer to sell. I spoke to Domain about this on the weekend.

But there are still some homes selling well under the hammer at auction, particularly where there is some aspect to the home or area that buyers are seeking. 

We experienced this ourselves a week ago with a client looking to downsize. We were bidding to buy a 2 bedroom villa unit, but at auction we had competition. There were three other bidders that had the same idea.  As a result, even though the home was in original condition, it was quickly on the market and sold for $95,000 over the reserve price.

We were immediately told by the agent about another home that had just been listed with them, two doors down.  It was being offered for sale off market ie: not publicly advertised, but we needed to act fast before other buyers got wind of it. We inspected this home on the Monday and our offer was accepted on the Tuesday.  My gorgeous 81 year old client now owns a home in the block of units she always dreamed would one day be hers, when she was ready to downsize.

In the current real estate climate, there are many homes being offered by vendors for sale off market.  It is through our relationships with real estate agents, established over many years of buying and selling in Melbourne, that we are advised about them and can scoop them up for our clients.  As they say, it is not what you know, it's who you know...

If you or your clients are out hunting for a home, an experienced, independent (and connected!) voice can make all the difference.  I'd love to help.

On 2nd April Katrena Friel will show you how to Discover the 10 Secrets to Business Success at the next Women's Network Australia Event. 

Wendy will be guest speaker on 98.9 NorthWest FM's radio show 'Midday Panorama with Vilma Formosa' on Friday 26th April 2019.

Thank you to Wendy for helping me find this fantastic property. I am so excited. It's in the location that I wanted. It has fantastic transport nearby.  It's in a great spot with lovely neighbours.  I'm ecstatic to have bought this. Thank you very much for your help

Danielle

 

Wendy has recently spoken to The Sunday Age regarding vendors changing their approach, given the current property market in Melbourne. 

She discussed that some vendors who have failed to successfully sell their property are now making minor updates and relisting with a new, lower asking price. In many of these cases the vendor will relist with a new agency, which can cost them thousands of dollars in marketing fees.