70% clearance rates do not sound the death knell for property in Melbourne. There were over 1200 sales reported to the REIV last week with some huge results for properties under $1.2M. But if a property is poorly located or poorly marketed the selling agents will have their work cut out for them.
Whilst we can assume that property price growth will slow during the winter months, there are some very evident results that show that it is not a “buyers dream” market. Bentleigh and Ormond are still selling family homes well above $1.3M as evidenced by Somers Street last week and Queen Street this week. All our advocates saw plenty of people at opens over the weekend and whilst the long weekend next week will be quiet, the following is scheduled to be very busy.
We can also assume that the massive sales numbers of April should begin to taper off. If they do not, then we will see the clearance rate plummet into the low 60’s or below. If this occurs then we are back into a buyer’s advantage market. This is the time to get good advice. A good negotiator will save you thousands of dollars in any style of negotiation, whether the property is advertised for auction, expressions of interest or private sale. You need to also remember that it is not only the price that is negotiable.
In a buyers market it is crucial that you understand what the property you are bidding on is fundamentally worth. Just saying you want ten or twenty thousand off the asking price doesn’t mean you are getting a bargain. It might be worth fifty grand below asking price. At the same time if a property is well priced, you want to make sure you secure it before someone else works out it is already at a bargain price.
If you are in the market for a home to live in or that elusive investment property, give us a call for a chat. The first meeting is obligation free.
Ian James
