A strong market or pre-Christmas desperation?

Today marked the fourth last weekend of 2016 and buyer motivation was evident in many suburbs despite the strong number of properties auctioned today. We had our record number of auctions ever, and the ones we missed  were not near-misses.

They flew past reserve.

So what was it that enabled these stronger-than-anticipated results?

Missing out in Albion, Essendon, and two in Yarraville hurt, but each property had an x-factor that undeniably evoked emotion and buyer-determination.

Different areas boast different offerings, and today gave an interesting insight into what drives markets and dwelling types.

Take this real-life example in Essendon. This very dated but beautifully preserved three bedroom, one bathroom villa unit in a group of two boasting over 450sqm of land attracted buyers in their numbers; many of whom were helping elderly parents secure a cute, manageable, single-level unit in a great locale with public transport options at every turn. I commenced the bidding at $650,000 and fought of many buyers above the $690,000 reserve, but the winning bidder stole the show and the hammer fell on his $872,000 bid. As the auctioneer said to me afterwards, “Cate, buyers will sometimes pay whatever it takes to get their parents the right home.” And I cast my mind back to other single-level, 80’s or 90’s style villa units where i’d  watched the result soar at auction and reminded myself that Essendon is a very family-friendly area which would be favoured by those who like to keep family close.

My last auction of the day was on the western side of Yarraville near Wembly Primary School. The cute mid-century weatherboard attracted around a hundred observers and I could feel the energy as I arrived. This cottage offered more than just a popular postcode.

It backed onto a park… with it’s own gate and all.

Again, I kicked off the bidding but my attempts to bid with authority were futile. Not just one, but five bidders wanted it more than me and had budgets to challenge the most pragmatic of all of us. True to his campaign pitch, the listing agent and auctioneer placed the property on the market in the $685,000 vicinity and seemed shocked at the late entrants on every final auction call.

This property had attracted many young hopeful family buyers.

Representing what is probably recognised as the last of the sub-million dollar family homes on land in the area, two late market entrants stepped in one by one as one strong fighter outbid them in succession. It wasn’t until the young couple with the assistance of a helpful Dad in the background pushed the tough bidder to his $1.002M limit that the final victorious bidder fought with unrelenting punches of $500 increments that the hammer fell on their bid well in excess of a million dollars.

Whoever thought this little house would reach such heights?

Certainly not the neighbours who squealed with joyous support for the vendor inside. What this sale taught us all was the value in the scarcity of a parkland-neighbouring address in an otherwise crowded suburb boasting turn-of-the-cenury homes on tiny blocks.

Today certainly saw some strong results,but not across the board. Understanding popular and tightly-contested features in every locale is important for buyers who are looking to secure a home in this last month of our auction season. Having a Plan B is essential, and anticipating a strong result on a rare diamond is important. But most of all, having a sensible walk-away figure is integral. Bank valuations and sleeping well at night is most important.

And for those buyers who feel the market shift may have precluded them, focusing on other nearby, more affordable areas is the next possible step.

Compromises sometimes hurt, but finding the compromise which makes that jigsaw puzzle come together is so rewarding when done carefully.