Last week was eye opening.
I’ve seen strong auction weekends before. February 2020 was strong. In 2016 and 2017 we saw a strong run with reserves being smashed week after week.
But I’ve never seen anything like this.
I couldn’t believe it as the following sales unfolded before my eyes in within 24 hours over the weekend…
9 Dorrington Avenue, Glen Iris, a beautiful yet slightly dated 1970s family home on 1025sqm sold for $600,000 above reserve with eight bidders.
139 Finch Street, Glen Iris, after receiving a trigger offer some $400k above the range, ended up selling for a further $600k above the trigger offer. That is, $1,000,000 above the top end of the range.
3 Glendearg Grove, Malvern, a fully renovated double fronted Victorian on 644sqm, received a knock out offer some $800,000 above the range after just the first week on the market, which saw 75 groups inspect. Even at this level there was competition for it. And this is a home that we couldn’t get a genuine sniff on in the mid $4m’s as recently as December, off market.
Finally, I saw the biggest auction crowd ever at 2 Stuart Street, Armadale on Saturday, where more than 300 onlookers watched an unrenovated two bedroom Edwardian with no parking on 206sqm sell for $1,720,000 – a lazy $600k above the top end of Woodards’ range of $1,000,000 – 1,100,000.
It is as if we have had three years of price growth in three months.
So what is going on? It seems to be the perfect storm at the moment of cheap money, limited stock, post COVID/light-at-the end-of-the-tunnel positive sentiment, rising asset prices across the globe, and (dare I say it) pent up demand.
Either way there is a palpable buzz out there at the moment, a boat load of confidence and a lot of records being smashed. I have no doubt we are now comfortably above the November 2017 peak.
I feel for the buyers out there who are getting priced out because it is so competitive and the market seems to be getting away from them.
The only saving grace is that interest rates are so darn low that affordability is still relatively high, as much as that seems counter intuitive with these stratospheric prices. But that goes to show just how cheap money has become… Hello debt!
Team Fetter/Sciola’s New Listings
We are very excited to be launching a real A-list trophy home next week in Richmond, which may well set a record sale price for the suburb.
This architectural and masterfully designed modern home on 450sqm of prime Richmond Hill land has been featured on Grand Designs Australia and is truly iconic with a swimming pool, cinema room and rooftop deck with 360 degree views. Suitable for buyers $6m+. Keep an eye out for it next week. It will be hard to miss it. In fact it’s just leaked in the media.
We continue our takeover of Prahran this week with four period homes at 51 Bayview Street, 15 Bowen Street, 31 Newry Street and 2/203 Dandenong Road all launching.
As with the family home market, the single fronted period homes are also flying out the door.
If you’re looking to secure a home in this competitive environment I encourage you to inspect early and get your ducks in a row ASAP (contract reviewed, second inspection, etc). Many properties are not running the full course and are selling in less than two weeks.
As always, thanks for reading and we look forward to helping you with your next move.
If you’d like an update on your current place and what it might fetch in this very strong sellers’ market please let me know.