After rolling over the JobKeeper speed bump and enjoying a deserved Easter pause, the Melbourne real estate market continues to defy Doomsday predictions and cast off the shackles of COVID lockdown.
As we get deeper into autumn, with an eye on winter, the once upon a time intense focus on the Spring selling season has come forward and is set to be spread out over the colder months.
Many of the long-held reasons for selling in Spring, such as a buyer frenzy, no longer apply with the strong market momentum out of lockdown, set to continue unabated.
A number of Brad Teal Woodards agents are enjoying record periods in terms of sales and appraisals as both buyers and sellers see a market full of opportunity.
Essendon agent Bruce Warburton had one of his best months appraisal-wise in March, valuing 55 homes for prospective sellers, while also listing a strong number of homes and achieving some outstanding prices.
“There is very strong demand in the market and I don’t see that changing,” he said.
“There are a lot of cashed up expats coming home, who are in the market and because of that the lack of immigration at the moment is not slowing things down.”
Mr Warburton also said first home buyers, motivated by government incentives were also a force in the market.
That strong demand was illustrated by the sale of a Hoddle St villa. The beautifully presented two bedroom villa unit went for $75,000 over reserve for $715,000.
Mr Warburton said the actual Essendon clearance rate was likely as high as 98 per cent, after sales post-auction were taken into account.
“There is lots of confidence in the market,” he said.
“People are still a bit reserved about COVID and I think that will continue until the vaccination rollout. But in terms of sentiment things are mostly back on track and demand and prices are likely to hold up in the colder months.”
In Sunbury, Brad Teal Woodard’s agent Matthew Makin said the much talked about end of JobKeeper and its potential impact on the market was little more than a blip on the radar and that buyers have roared back post-Easter.
“As soon as Easter was over, people have come straight back out,” he said.
“There’s lots of activity. We have many homes getting multiple bidders. So it is a very strong market as we come into winter. Affordability, great lifestyle offerings, the lack of homes and a huge increase in demand from first home buyers and investors are all driving the market.”
Mr Makin said his sale of a Hirst Court property, a three bedroom, two bathroom family home on approx. 648sqm for $630,000 after he had appraised it at between $580,000 and $620,000 was a sign of the buoyant market.
Brad Best from Brad Teal Woodard’s Gisborne office said confidence had growth as the year had gone on with both buyers and sellers. He recently quoted $950,000 on a Gisborne home that was sold for $1.1m.
“There are two main factors at work,” he said.
“There is pent-up demand in the market given what has happened over the last 12 months but there is also the attitude of buyers and sellers. They are very positive about getting it done. People are living for the now and deciding the time is now right for them to buy and/or sell.”
In Pascoe Vale, Brad Teal Woodards sales agent Andrew Butler is also witnessing high confidence.
“Since coming out of lockdown it was a sprint, there was plenty of activity,” he said.
“I would use the word supreme confidence. COVID is still in the back of people’s minds but they are happy to forget about it.
“Buyers are going hammer and tong. They are not standing on their heels or waiting for something to happen.”
Mr Butler said the end or changes to some government incentives on June 30, might change the situation for some buyers but he expected the market to continue to be strong into spring.
“As we say, the only people who might take a break are sellers. But the majority of the buyers in the market now will go until they make that purchase.”
Mr Butler said the sale of a Balmoral Ave home, a well-maintained three bedroom classic brick home, for $1,24m when it had been valued at $900-950,000 illustrated the confidence of buyers.
Craig Teal, from our Keilor office says: “I’ve never seen the market so strong and that is being driven by buyer demand”.
“It shows how resilient the market is. It wasn’t that long ago people were making Doomsday scenarios about a 30 per cent fall in the market. That obviously hasn’t happened.
“There are a lot of buyers competing for limited stock.”
Mr Teal said the market would likely continue on its current trajectory through winter and into spring due to the excess of demand.
He pointed to the recent sale of a fabulous family entertainer on Lentini Place, Taylors Lakes as an indication of the strength of the market.
The home’s value was quoted between $780,000 and $820,000 before selling for $876,000.
As you can see, now is a great time to sell. If you are interested in an appraisal, please contact us as Brad Teal Woodards today.