The Cracking Melbourne Market: Blink and You’ll Miss It
The news is changing, we’re now hearing about the cracking Australian housing market momentum and how it’s continued to scream along this week in spite of lingering interest rate uncertainty popping up like excitable meerkats in Melbourne and Sydney.
Major capital city property prices rose again showing renewed momentum in the housing market. According to Cotality, dwelling values in capital cities rose by 1.1% in October (the fastest monthly gain in over a year). ABC+2Australian Property Investor Magazine+2 Over the last year, capital‑city values are up about 7.5%. Realestate.com.au+1 For the quarter to September: national median house price rose by 1.1% . The quarterly growth is modest but given constrained supply and demand pressure, it’s significant. There’s umpty hundred monies flying around the cosmos.
“Fahey! Numbers, numbers, numbers… knock it off. I’m not a statistician or mathematician, so what does all this actually mean, for me?”
Put simply, buyers are out in force — owner-occupiers, investors, and first home buyers — at a time when available supply is struggling to keep up. Some of these buyers are getting desperate, bidding emotionally, driving already sky-high prices, higher. “Any higher I’ll get a nose bleed!” This is the thing that keeps pushing prices higher.
If you’re in the market, have been staring bug eyed at the listings scrolling past you online you will have seen the dearth of supply. And yeah, damn online portals who keep changing the front page photos making you think for a fleeting moment, “NEW LISTING! NEW LISTING! Urgh! No, it’s that dump on High St again…”
What can I do?
Get ready. Make sure you’ve got your bank finance sorted — don’t assume you have either. With the new demands, some banks are also taking record times to process loan applications with the standard 14 day finance clause blowing out to more realistic 21 or 28 days. Vendors don’t like finance clauses because they are waiting one or two weeks extra to see if their house is actually sold. If you’re able to write an offer without a finance clause, do it. Take the advantage.
Be realistic. Know your market. Understand what has sold recently and what it sold for. If the sold price is unlisted, call the listing agent and ask. The palaver of agents withholding sale prices is extremely unhelpful for those trying to understand the market. Look at SOLD listings, not live listing to truly understand price trends. As you know, where listings start and where they finish can be two completely different hemispheres.
Set your price strategically (and stick to it!). There are three prices you need to consider. 1) what is this house worth? 2) what price is it likely to achieve under competition? 3) what is MY (emotional) price? There’s a number between the 2nd and the 3rd that you need to consider. My best tip, don’t end on a round number. If you’ve got $850,000 consider $853,500 — that extra $3,500 might just be the difference between a SOLD sticker and another slew of OFI appointments in your calendar.
Get help. If you’re not using an experienced licensed Buyers’ Agent in this day and age, you will most certainly be competing against one in the marketplace. Of course, I understand you may not feel that service is within your budget, but I urge your to reach out., you’re likely to be surpised. What can feel like a big outlay can actually save you thousands in negotiation and guidance. A good advocate will be happy to give you some general advice to help you on your way. It’s what we do. We advocate.
Consider offers prior to auction. Make sure the listing agent knows you’re interested, this is no time to be coy. There’s a fine dance between letting your intentions be known and keeping your cards close to your chest. Practice your dance moves.
Don’t give up. “The market is too hot. I can’t compete. I’ll just wait.” I get it! I completely understand the impetus, but I’ve never seen this strategy actually work. Be smart, be ready, be proactive.
Younger Hill are Property Advocates located in Melbourne’s Inner North. Led by Fahey Younger, our team are fully licensed real estate agents and property specialists. We offer a collaborative and emotionally intelligent approach to transform old ways of buying property. With more than 20 years of combind buying and selling experiences, you’re in rock solid hands.
We service Melbourne Metro, Mornington and Bellarine Peninsulas, Rural Victoria (Gippsland, Daylesford, Hepburn Shire, Ballarat & surrounds), Sydney northern beaches, because property smarts don’t stop at the border.
