A scramble to sell before Christmas?

This weekend was a successful one for quite a few of our clients. Our auction success rate record 75%; a record for 2016 for us. Was it chance? Good luck? Or a reflection of  pre-Christmas market conditions?

Buyer activity is slowing down now as people are preparing for Christmas, or away at end-of-year parties. Some of our clients have become ‘unavailable’ for their regular Saturday property inspections. Vendor activity however is at an all-time high. For those vendors who are taking the opportunity in the last two weeks of the year to sell their homes at auction, many are determined and/or financially motivated to do so. Some vendors’ preparedness to meet the market is obvious when lower offers than originally anticipated are being accepted. The risk any vendor faces when selling at the end of the year is the threat of limited buyers. Whether the buyers are tuned out for Christmas or out of the market having already bought, the threat of reduced buyer competition is very real.

The flip-side though is increased buyer motivation as the year closes out.

We have seen some impressive sale results for vendors who have taken the chance and opted for a December campaign.

Yesterday’s auctions were interesting and some presented lower attendance and buyer numbers than what we’ve typically witnessed throughout the year.

Such market conditions certainly worked in our favour yesterday for some of our clients.

The first auction I bid at was a villa unit in Reservoir in arguably one of the suburb’s most favoured streets. Set in a block of just four, offering a generous yard and a superb floor plan, this raw diamond was fought over by just three buyers. Interestingly, we noticed a micro-glut of villa units in Reservoir all hitting the market for December auctions and took advantage of the greater supply scenario.

At  the same time, and in the same suburb, another client’s chances of success were enhanced by  the same micro-glut. Another happy buyer secured their villa unit at auction at 11am.

The second auction I attended was in Sunshine. This gorgeously renovated, front house with two townhouses behind it stole our buyer’s hearts on first inspection and we nervously geared up for auction over the course of the two weeks prior. A building inspection, contract review and rigorous analysis gave us all the confidence we needed to give the three bedroom house our tick of approval. What we particularly loved about this property was three-fold; a great rear courtyard through living area french doors, a beautifully secure and private front garden, and glorious period detailing, from ceiling roses to fireplace. Surprisingly the fight we anticipated was quite subdued and happily the property sold to us very quickly for $490,000.

My favourite auction of the day was my last.

Our lovely duo had been working with us for eight months. We’d bid at more than a few auctions for them and disappointment on every occasion always struck. It was becoming a real concern for them; having watched an aggressively moving market shut them out of their dreams to secure a family home on a decent sized block of land in their targeted suburbs of Footscray and West Footscray.

I was concerned about their chances of success for 13 Soudan Rd because these houses consistently command strong and broad appeal for aspiring family-home buyers..

This auction was indeed well attended and two buyers in the crowd threw in bids, but it was an incredible moment of adulation for our patient pair when the hammer fell on my $840,000 bid. I had to hold back my own emotions when our buyers shed a tear.

For whatever reasons, luck came our way yesterday and we are incredibly proud of the properties purchased.

With just one more auction weekend left in this action-packed year, we look forward to similar market conditions and surprises next weekend.