Paperturn version MARKET NEWS Year Book 24 revised - Flipbook - Page 3
Seasons Greetings
The Four Melbourne Markets
E
nter 2024, talk of no rate increases, talk of possible
falls, probably a year of steady as she goes, but
who knows. Anyway, enter 2024, and as a Top-End
collective, the world felt like a better place with a lot
more people through opens, sellers increasingly coming
to market, and agents busying up so much; they do not
have time to lament their world.
Early in 2024 the signs were positive. Below are quotes
from within the main markets of our 100 Auction Test –
Summer (M1), May (M2), Ealy Spring (M3) and
Pre-Christmas (M4) to show how things panned
out in 2024.
M1 (February)
How has the opening 2024 M1 Market
Started? The stats surprised me - it felt
a lot better in terms of enquiry and action
personally. However today was volatile in
result and seemingly shallow in demand.
• Price is the absolute brand on the home.
• Overpriced it sits. On the money it shifts.
• It used to be Heritage, ‘twas then renos, now it is price
that scares.
M4 (Pre Christmas)
Bidderman levels were GFC-like, and clearance rates
a chilly 55%. Of the 44 auctions we covered, only three
sold on the street under the hammer.
Wow, three from 44 under the hammer. Why are sellers
being advised to rush to auction? (see page 14).
For buyers: Specialist negotiations were
required in 41 out of 44 cases, eg 41 failing to
sell transparently. An experienced buyer agent
is essential in this market. At one auction,
a lone bidder raised their offer by over
$400,000—against
themselves? Another Wow!
‘So, Mal, what does this all mean?
Where is it all heading? I want to relax over
summer and forget about property!’
Well, I plan on some time with family and friends, walks on
the beach and watching Australia and India battle it out
on Boxing Day, so go ahead and relax. What all the above
simply means is the market is retreating to the quality of
PPPs street, build and price.
Whilst for most of 2015 - 2021 flaws in homes, such as
next to railway, smaller living areas, weak garaging, bad
light and poor flow were overlooked, the class of ‘24
has been brutal in their marking down.
Let’s wait and see what 2025 brings in May, after
the Feb Pep (when there is a bit of action after six
weeks off).
The market is
retreating to the
quality of PPPs
– street, build
and price
M2 (May)
Overall market is weak (but not dead) with lots of price
sensitive stock that is not attracting any interest from a
shallow buyer pool. Today’s evidence of this was 40% of
auctions (39) we covered had no bidding. However when
you hit the mark with an A-Grader meaning Position,
Property AND Price then it can still fly.
M3 (Early spring)
It’s a tale of two markets—either you were hot
(with some properties attracting significantly higher
interest, volcanoes—due to correct pricing), or you
were not (with almost one in five auctions resulting in
a duck—no bids at all).
Like last year the longer Spring went on, the weaker
it has got.
See you out on the hustings,
Mal
