Hi all,
Apart from all the media hype that is surrounding the current RE market; I am particularly interested in actually watching what is happening at Auctions of late. Yes I know, that Auction clearance rates are down, and as such, you would think that property sellers would opt for Private Sales in place of holding an Auction which is either (a) likely to attract no other bid other than the vendor’s, and consequently (b) will get passed in.
Recently I went to an Auction where the bidding stopped at 250K; Auctioneer consulted with Vendor who insisted he wanted at least 280, so property was passed in. A week later, I rang the REA and asked him what offers the vendor “may” consider, and was quickly told “nothing less than 285K” [blink]hmmmmmmm too much for me I thought; left my details with REA and hung up. Have been watching the price gradually spiral downwards…….
Days after Auction the property was advertised as 280K, a week later 275, two weeks on it was down to 270, three weeks later reduced to 265, last week it was at 260 and on Saturday it was down to (the Auction’s Highest Bid) 250K……it had done a full circle, and was marked a full 30K off in just over on a month!!!! REA rang me yesterday and said seller would consider offers of 250+ but I promptly informed him I had purchased elsewhere!!!!
Jo
Sorry to ask Jo but could you tell us where???
I noticed in the Heralds Domain (Re listing ) that it looked fuller than normal.
Also on reading it saw prices listed on property again, instead of “for auction “Thats got to be a sign.
In the Hills there is a lot for sale.
One block of townhouses completed mid last year, looks very empty. When I go home at night there are only 15% of the units with their lights on. They have even put back out the front “Only 2 Left ” board from mid last year.
Its gonna be fun.
Hi gmh454,
The property I am referring to is in Bundoora (Northern suburb of Melbourne); although I believe the REA rang today while I was out to say the vendor has decided to take it off the market due to poor responses!!!!
If you are in Melbourne, forget DOMAIN, although it is okay, to really get a clear picture of what is happening with RE clearances, take a look at Sunday’s Age, which will give you the previous day’s Auction results, and clearly spells out the clearance rates in percentages.
Yes you’re quite right, there are far more Private Sales, than there are Auctions thesedays, and is it any wonder, with such poor results being achieved???
A year ago, I was putting in offers for properties along with 3 or 4 competing buyers, now the REA are busting my chops trying to sell properties they have had on their books for months!!!! Little do they know, I will be buying again shortly, but for now, I’m just sitting back chilling……give it another few months, and I’ll make my move!!!
Cheers,
JO
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