We are now in extra-time, or “overtime” as the rest of the world calls it.
The full four quarters of the real estate year have nearly played out. There are five weeks until Christmas and only one more week to launch auction campaigns for 2021. And what a year it has been!
Who would have predicted that during the chaos of a pandemic that has killed millions, decimated businesses and ground international movement to a halt, property prices around the world would have boomed?
Not me. But they have.
In our own little bubble of Stonnington we have seen property prices soar by 30 – 40% in some instances since COVID hit. It belies belief.
The emphasis is on the word ‘some’… Not all.
Some apartments are really struggling right now. Last night a colleague sold a very nice older style apartment in Toorak for less than the vendor paid in 2017.
Another colleague sold a very good contemporary townhouse in a great street in Malvern this week for $500,0000 less than a bank valuation from just two months ago, after three price adjustments.
Meanwhile, period houses on decent land continue to see three, four of five bidders at auction.
On Saturday I auctioned 32 Cawkwell Street, Malvern and not even the driving rain could dampen the enthusiasm from four bidders. It sold for 29% more than it was purchased for in May last year with only some minor improvements made by the way of landscaping.
Yet while some properties fly, others remain grounded.
But this is typical in all markets – even in the hottest market in over a decade some properties will not sell. It all comes down to price. Overly ambitious vendors will get found out in any market.
Our focus now turns towards selling our current stock before Christmas and listing a healthy amount of new stock for the new year.
Contrary to other chatter, I don’t believe the market will start up earlier than usual in 2022, at least not in Stonnington. Most vendors and agents will wait until after Australia Day to launch their new campaigns, with the first busy auction weekends being the 12th and 19th of February.
So there isn’t much time left to secure a property in 2021. There will, however, be more off market opportunities arising in the coming weeks with some vendors having missed the boat for a campaign pre-Christmas but still willing to sell now at the right price rather than wait for February.
Feature Image: 29 Glendearg Grove, Malvern