A snap shot of what is happening on the ground in Melbourne

Where?
Sign of the times

 

Inner north and inner north east. All between 800k and 1mil

 

Interesting Thanks

As I suspect all markets will feel the pain, some more than others

 

Seems passed in and now being listed above the range for a couple. Interesting times.

 

Not sure of motivation for original post, but I decided against Mel a while ago, for same reasons as Syd, had already been on the boil, and is now time for both to be smashed....and hard I would say, unless we have some sort of boom or free money real soon....

I think Adelaide and Brisbane are, or were recently, the good buy in markets, as well as many NSW regionals, but they have taken off too, so maybe Perth and other regionals I do not know of are the smart money for now, along with Adelaide and Brisbane.

 

House I was watching auctioned with a guide of 1.8 to 1.98, says sold for 1.75

Bayside, Melb

8 out of 10 auctions in the suburb passed in

 

the Sydmelb obsession with auctions, is it normal? It must be the same in London, Hollywood, Manhattan, Paris, Amsterdam etc...

No matter how many properties get passed in at auction in a certain suburb the next batch of properties are for auction too. It’s like the agents know how much the market value is but they’re hopeful that FOMO will drive the price way above reserve.

This might be the normal practice in all top cities OR this might be unique to Aus indicating this is a bubble. It’s important to know.

 

Is it legal for a property that got passed in on 3 successive vendor bids to be then listed as "passed in" at the highest vendor bid?

 

I think we all know what OPs motivation was...

 

The ones I saw yesterday. That’s how they are listed in the result. Now all private sale 50-80 higher than passed in bid.

I believe it’s common practice.

 

Ok, I would have thought that there would be laws in place to address it. Seems misleading if someone is just going off the auction results..

 

The most interesting thing in Melbourne at the moment is that agents and buyers don’t seem to know what houses are worth. I’ve stood in places advertised as 800k, 900k, 1mil and 1.1 in the last few weeks.

Sometimes I think “I’d pay the 8XX. Then I go to the 9XX and think - wow, if this is 9XX that 800 place is overpriced.” Same happens when I go to the 1mil joint.

Considering I’m relatively educated on the market, it makes for an interesting time for all.

 

Yah, but if you are going to watch a place get passed in and have a crack, best to show to the auction anyway and see if there is any buyers there or if nobody shows up.

But I do agree. It should say “vendor bid”

 

Any updates or forecast for Wyandham Vale?

 

I can assume from a quick glance, but was not really trying to nut it out....so I err...

 

These numbers - today's Age auction results - probably don't tell the whole story but they are somewhat striking when it comes to the 'best' suburbs:

Passed in/Total: Beaumaris 8/9; Brighton/E 14/21; Camberwell 9/11; Canterbury 3/6; Hawthorn 5/6; Kew/E 11/15; Mont Albert/N 6/8; Toorak 5/6

 

In L.A, seller sets asking price takes offers from there.

 

I wonder why folks are still going to Auction?

 

It’s a peculiarly Melb and Syd phenomenon to commonly auction fairly standard family homes although I believe it also happens in South Africa quite a bit . Generally not in the US.

In London and indeed the rest of the uk virtually no “normal” residential properties are auctioned. Vendor sets the price, you go up or down from there depending on market conditions at any one time! Only properties that go to auction are absolute wrecks, bankrupt estates, or super high end prime properties. Some commercial property is auctioned but resi not often at all.

I found it one of the big differences when I moved to Melb from the uk was to find auction was such a normal way to sell residential property here and indeed a form of live street theatre at the weekend.

As a Brit, the idea of competing to buy your house in public with all the neighbours watching and everyone knowing what you paid for your house is excruciating...culturally it’s so different

I do think it quite strange that given the high failure rate of auctions these days, other methods of sale are not considered in Melb - but auction culture is very ingrained here.