Fierce buyer activity rules the market

Coming in as the top sale of the day was 18 Lennox St, Gordon which sold under the hammer through Ray White Upper North Shore agent Scott Phillips for $3,170,000 (pictured above).

With eight of the 14 registered bidders actively participating, there was some tough competition. After hitting the reserve of $2,500,000, two bidders continued to slog it out to reach the finish line. The rapid fire bidding finally came to an end and a family with young kids looking to secure a good property close to nearby schools came out on top.

Mr Phillips said the house is bigger than the average on offer in the area and well located which ticked all the boxes and drove buyer interest.

“The market is pretty warm right now and you’ve got all kinds of buyers, those looking for good quality building sites, project buyers wanting something to renovate and then builders who can get in there and create something exciting. They really made up the buyer pool for this one,” Mr Phillips said.

The huge buyer interest prompted Mr Phillips to move the auction forward one week and he said that low stock levels also played a part in the demand.

“There’s no real kind of surge of properties coming from what we can see. Maybe in another six weeks there may be more volume coming in but there are no real signs there is going to be a flood in this area,” he said.

“If you’re sitting on the fence about selling then I’d say it doesn’t get much better than this and there is no reason to wait. The market will absorb the stock as it comes on and vendors are going to be well rewarded.”

Fellow Ray White Upper North Shore agent Rowan Lazar also had a successful day selling 12 Selwyn St, Pymble for $2,930,000 and 1D Orinoco St also in Pymble for $2,400,000. Combined Mr Lazar had more than 15 registered bidders attend the auctions.

Defying apartment price predictions, Ray White Belmore director Mourad Garabedian and agent Tony Skaf successfully sold 6/541 Burwood Rd, Belmore for $721,000 after it was called on the market at $710,000.

While the weather was gloomy outside, the atmosphere inside was fast paced as five bidders of 11 registered bidded back and forth in the hopes of securing the two bedroom unit. A young couple (pictured above with Mr Garabedian, left, and Mr Skaf, right) from the other side of Sydney finally cast the winning bid after being attracted by the rarely found spacious layout of the unit.

Mr Pattaro conducted the mid morning auction and described the auction as having “strong bidding from start to finish”.

Mr Garabedian said generally speaking the apartment outperformed any other similar that he has seen come onto the market in the last 12 months.

“The change in the market is reflected in the amount of inspections we had over the course of the campaign and then towards the end, the amount of registered bidders,” Mr Garabedian said.

“Just like everywhere, there’s low stock in Belmore but I have three new properties coming to market in the next few weeks and I think we will start to see more stock come to the market.

“But without a doubt, today, the market was on our side and the vendor is over the moon with the result.”

Meanwhile in Pagewood, a family who had been looking for more than six months for their next home became the new owners of 208 Banksia St, Pagewood (sold sticker pictured above). The three bedroom house sold for $2,100,000 under the hammer and well above reserve while twelve registered bidders looked on.

Ray White Kingsford selling agent Ferry Suwito said the family, who are renting in the area after selling their Rosebery home, are planning to knock down and rebuild on the land.

“There are a lot of buyers out there right now and I think land size will be a crucial part in selling a home,” Mr Suwito said.

“A big part of why this property attracted more than 120 groups at open homes was because it’s on a bigger than average sized block as well as the low stock levels in the market.

“There has been triple the amount of usual people at open homes and really strong bidding at all our auctions including this one.”

Ray White Victoria Chief Auctioneer Matthew Condon said February was off to a great start with the state’s real estate market continuing to go from strength to strength.

“The shortage of properties available and the high level of buyer demand continues to create conditions that are conducive towards sellers getting a premium price,” Mr Condon said.

“Based on preliminary data from the Ray White Group, we are continuing to see a rise in the amount of active and registered bidders at each auction.

“Properties under $1,000,000 continue to see results with a high number of first home buyers still very active in the market.”

One of the biggest sales for the day came out of Melbourne through Ray White Glen Waverley agent Cristine Jones. Ms Jones sold 3 College Crt above reserve for $2,325,000 to a crowd of curious locals and four registered bidders.

The bidding began at $1,900,000 and then went up in steady increments of $50,000 before selling to a young couple (pictured above) who are excited to be able to start a family after moving from a townhouse in Clayton. The couple told Ms Jones they were determined to secure the location and size of the home.

The Ray White Glen Waverley agent said the majority of interested buyers were families who wanted both space and to be close to nearby schools.

“Space is a big factor for buyers at the moment, they are looking for more room for several reasons. In case they need to accommodate other family members, cater for homeschooling arrangements and working from home,” Ms Jones said.

Ms Jones said she also sees more seller activity on the horizon to meet increasingly strong buyer demand.

“There is low stock at the moment but our appraisal numbers have increased and we are starting to have more strategic and serious conversations with potential sellers,” she said.

“If I continue to list properties in the same way I have this week then I think March is going to have more activity.

“I think it’s really important to stress that we shouldn’t take this for granted and move away from focusing on the process just because of the amount of buyer numbers we’re seeing. We can’t lose focus on the fundamentals just because of buyer activity.”

The auction success began early today after Ray White Ferntree Gully agent Matthew George sold 1/59 Jesmond Rd, Croydon to a first home buyer (pictured above) in her 50s for $675,000 - $50,000 above reserve. Mr George said the winning bidder was thrilled to finally be able to call herself a homeowner.

After a four week auction campaign where 45 groups inspected the two bedroom home, the auction drew four registered bidders who Mr George described as all “good quality, active buyers”.

Bidding began at $550,000 with three active bidders competing for the home but by the time the property was called on the market at $630,000 there were only two bidders left. The pair were neck and neck for much of the auction, bidding in $5000 to $10,000 increments. The underbidders were a young couple who had already missed out at auction four times previously.

The Ray White Ferntree Gully agent said it’s not uncommon at the moment to see buyers missing out and puts it down to low stock levels and increased competition.

“There’s low stock in Victoria and there are just not enough homes for the amount of buyers out there,” Mr George said.

“On average, open for inspection numbers have gone up and we’ve had record numbers through. During the week of January 9, we had 715 inspections across all our open homes, beating the previous record of 500 groups.”

With so many buyers actively looking, Mr George said every part of the market has been active.

“First home buyers, families and downsizers are all really active and the market has been fairly busy. Houses are more in demand at the moment than units,” he said.

“I think the Melbourne lockdown is why we are seeing such an excess, maybe more so than Brisbane and Sydney where the lockdown wasn’t as strict last year.

“People are also doing things differently because of COVID. In the last month, I have had one seller move to Queensland and another move to WA. I don’t think they would have made that move if it wasn’t for the pandemic.”

Luckily for buyers, Mr George forecasts more stock coming to the market in the next few months, especially as sellers see the great results being achieved at the start of the year.

The sellers of 2/4 Hilton St, Mount Waverley were also after a pandemic prompted lifestyle change and after a successful $1,001,000 result today they can now move on to their next adventure on the Mornington Peninsula.

“The catalyst for our move was definitely COVID. My wife is planning to retire soon, she loves the social aspect of work but working from home changed everything so she decided to fast track her retirement plan and pull the plug early,” the husband of the selling couple said.

“She has lived here for 30 years so there are a lot of memories but we’ve always wanted to be by the beach and bring out grandkids down so we’re excited to get on with the move and thrilled with the result today which was above my expectations.”

The on-site auction was the site of a generational battle with first home buyers and downsizers both eager to snap up the three bedroom home. The successful bidder was a man buying on behalf of his downsizing parents. Selling at a massive $161,000 above reserve with 11 of 12 bidders actively participating, Ray White Mount Waverley managing director Courtney Matthews (pictured above calling the auction) said the result couldn’t fail to help entice more sellers to come to market in the next few months.

“People have renewed confidence in the market after lockdown and the lack of property on the market is fuelling the seller’s market,” Mr Matthews said.

“The $1,000,000 or less price point is going particularly well and the market is incredibly competitive across all segments.”

Mr Matthews also noted that the amount of sellers he’s seen planning to downsize to regional or outer city areas has doubled.

“We are seeing a lot of people moving to Gippsland and the Mornington Peninsula for a quieter lifestyle and to take advantage of the market in the inner suburbs while getting more value for their money further out,” he said.

The Ray White Mount Waverley managing director also said that open for inspection numbers have doubled and in some cases tripled in comparison to pre-COVID and lockdown numbers.

Ray White Queensland Chief Auctioneer Mitch Peereboom said it’s been a remarkable day for Ray White Queensland with a number of properties selling under the hammer.

“It’s been an excellent week of auctions across the Group, we’re seeing that average number of registered bidders are certainly consistent with the end of last year, if not improving throughout the month of January, into February,” Mr Peereboom said

“If you look at the sale prices, we are seeing them get to levels that have exceeded the expectations of owners. Certainly, buyer demand has not wavered, it’s continued from what it was at the end of last year.

“All signs at the start of February point towards the market not slowing down whatsoever.”

In sunny Brisbane, AFL player Alex Witherden was among the happy sellers today after offloading his 57 Burn St, Camp Hill home for $1,430,000. Mr Witherden bought the property 18 months ago for $1,220,000 but is now heading to Perth after being traded to the West Coast Eagles.

Selling agent and Ray White Metro North principal David Treloar brought the auction forward a week due to the intense buyer interest.

“This is the third property over 800sqm that I have sold in Camp Hill in the last six months and I think one thing that COVID has shown a lot of families is that they need more room. That size is so highly desired by families in particular,” Mr Treloar said.

There were four registered bidders at the auction but three fought it out even after the property was called on the market at $1,375,000. The winning bidders (pictured above with Mr Treloar) in the end were a young family who recently sold their own home with hopes of upgrading.

The auction at 52 Seventh Ave, Kedron topped the leaderboard today for most registered bidders after 31 potential buyers showed up to the auction of the 607sqm block of land.

Marketed through Ray White Lutwyche agent David Lazzarini, the coveted block sold under the hammer of Ray White auctioneer Phil Parker for above reserve at $992,000.

A crowd of about 130 people attended the auction, many of them locals coming along to see what prices were doing in the area. Six registered bidders battled it out from the starting bid of $500,000 which immediately jumped to $850,000 and continued to fly up to the sale price. In the end it was a couple looking to build their family home that claimed the keys.

Mr Lazzarini said low supply and the desirability of the Kedron area played a hand in the great result.

“Supply is still tight and when you get a house or land in a good position then buyers will compete fiercely for it,” Mr Lazzarini said.

“Buyer demand is unprecedented at the moment. I’ve been doing this for 20 years and this is the highest level of buyer enquiry and interest that I’ve ever seen. We are consistently getting 50 to 80 groups during the first weekend of open houses.”

Ray White South Australia Chief Auctioneer John Morris said the state is reporting a preliminary clearance rate of 93 per cent and above today.

“Every single auction has had bidding, bidder registrations are averaging at 8.8 per cent per auction. It’s looking like it’s going to be a very similar repeat of last week,” Mr Morris said.

“The weekend has seen 65 auctions throughout SA with 37 per cent of those being Ray White, that equates to 57 per cent next week.

“The wild weather has not kept the buyers away but it has kept those yellow flags flying at auctions across the state this weekend.”

Buyers were also out in force in Adelaide today and while many missed out there were some happy stories to come out of the day. At the auction of 5 Hollard Ave, Grange a family managed to come out on top after spending the last few months looking for their next home. The home sold for $828,000, which was $78,000 above reserve, under Ray White Glenelg agent Rod Smitheram’s hammer.

The outstanding result was no surprise for lead agent Ray White Glenelg's Nick Beneke after the auction attracted 19 registered bidders while six actively bid.

“The auction started at $740,000 and from there it just skyrocketed. There was some really quick, aggressive bidding and it was all over in about 10 minutes,” Mr Beneke said.

“It just shows that the market is still red hot and everyone wants to buy. The result is well above our initial expectations so the sellers are stoked, they are also pretty pumped that it’s going to another family.”

At a Ray White Woodville auction (pictured above), office principal Peter Kiritsis sold 44 Robert St, Croydon for $1,017,000 as seven of the 24 registered bidders fiercely competed for the sought-after Bluestone villa.

The winning bidders were a young couple with plans to expand their family. They had been looking since well before Christmas and were thrilled to finally secure their dream home.

Mr Kiritsis said the area has been going through a significant gentrification and due to that and the desirability of city fringe living, buyers had been flocking to open homes.

“Everyone really liked that it already had an extension and where it was positioned on the street and within the suburb which is what we call the golden triangle,” Mr Kiritsis said.

“We are definitely seeing an under supply of these types of property and clearly, low interest rates have bought out lots of buyers at the moment.

However, we do have more stock set to come into the area over the coming weeks but we anticipate demand will remain strong and prices will hold.”

Another of the auction highlights of the day took place in Perth, where Ray White Applecross agent Noel Rogers sold 16 Russell St, Fremantle (pictured above) for $1,585,000 to a couple downsizing from regional WA.

The auction, in one of Fremantle’s most sought after spots, attracted 16 registered bidders while six of them actively placed a bid. It began with a bid of $1,300,000 and quickly moved up to the selling price as Ray White WA CEO Mark Whiteman conducted the auction.

Mr Rogers said the sale shows a total resurgence of the Fremantle market itself and huge buyer demand.

“It definitely demonstrates some substantial growth in the area over the last three to six months,” Mr Rogers said.

“And we are actually finding that this is giving sellers a lot of confidence coming out and offering their properties on an off-market type of sale. Then very quickly we find they convert the sale to an auction process because they begin to realise that will give them the best outcome.”