Lots of houses for sale in the same street?

[exstatic]

We found a property we are interested in a few weeks back and it goes to auction in a few weeks time. However over the past few weeks there have been another 5 listings for properties for sale on the same street, which I am not sure what that means for me as a buyer.

Do you think that it just means that the area is becoming pretty hot and people want to cash in on it (the area is about 8km from CBD, and hasn't 'boomed' just yet) or do you think its the opposite, that it wont boom, and people want to catch the wave while its still there? Or could something be happening that we don't know about!?

So as a buyer, is this a good thing? as I may be able to put in a lower offer due to the supply/demand for that street.. or could the opposite happen?

 

[silversands]

Since you haven't stated the area it's hard to answer. Either is possible! Dependant on just how interested you are in purchasing I would likely low ball anyway. Have you looked at the other houses for sale on the street to ascertain how good a buying opportunity the one you are interested in represents?

Regards Jodie

 

[Player]

Great, buy them all Brendan.

Seriously, I would consider looking deeper into council, state and maybe fed govt plans into the area or that street in particular. Is there any planned undesirable infrastructure in the pipeline that may adversely affect values? More investigation may be required by you and your solicitor.

Have you visited the locality and adjoining streets and what is happening there?

On the flip side, more for sale may just create too much stock for the demand and you may buy at a better price. Is this for an IP or PPOR? If it's for an IP and the other s are private sale, don't go crazy at auction. Research the other properties also.

As you state that the area has not boomed yet (if you care to share), is it 8 km from a capital city CBD or regional hub?

 

[steveadl]

Can't say I've seen 5 for sale in the same street recently, but I've certainly seen a large number come up for sale within a few streets of each other.

Assuming it's not a micro factor unique to the street you're looking at, is the area going through gentrification? Areas that do often have large number of sales in close proximity because people are cashing in, older people are dying (therefore estate coming up for sale), Housing Trust selling off stock in the area etc.

 

[exstatic]

The area is in Kingsville just outside of Melbourne CBD, while prices have certainly gone up over the past few years, it still seems that nicely renovated cottages can still be had for under $450k, whereas in the surrounding areas, Yarraville, West Footscray, Newport, Spotswood, these are not as common.

The property would initially be a PPOR, but the intention would be to sell/rent in about 5 years time, so we would be buying for CG.

Since I am not in Australia at the moment it becomes a bit hard to check out the surrounding streets to see if there are any issues I need to be aware of, and I haven't found anything online just yet that states any major works being conducted in that area..

 

[fatboy4]

Contact the agents and ask why the seller is selling. What they say or don't say may be interesting. You could also ask how long the seller has owned the property. Might be a few sellers who didn't do enough research before they bought. A helpful agent might give you some of the sales data for the street/suburb for the last few years.

 

[buzzlightyear]

The area is in Kingsville just outside of Melbourne CBD, while prices have certainly gone up over the past few years, it still seems that nicely renovated cottages can still be had for under $450k, whereas in the surrounding areas, Yarraville, West Footscray, Newport, Spotswood, these are not as common.

The property would initially be a PPOR, but the intention would be to sell/rent in about 5 years time, so we would be buying for CG.

Since I am not in Australia at the moment it becomes a bit hard to check out the surrounding streets to see if there are any issues I need to be aware of, and I haven't found anything online just yet that states any major works being conducted in that area..

Brendan, have recently acquainted myself with Kingsville. Good choice. Not that I will purchasing there, but a friend owns there. Spot on about unrenovated cottages.

As for local streets, utilise Streetview on Google and its almost like being there.

 

[aladdin]

I came very close to buying in Kingsville. Close to the city, lots of beautiful renovated cottages. Close to Yarraville village. Was last year during the boom tho and they wanted $500K and needed lots of work. Was Coronation st, and there were a few for sale at that time too, but they are quite long streets so i wouldnt think uncommon to have a few for sale.
Kingsville did well last year as people priced out of Yarraville moved out a bit. Kingsville is nicer than some parts of yarraville. Is a strange one tho as not allot of people know the area which i think means people dont really do a search for it when looking at houses. Its more an area you stumble across. I suppose time will tell if gets the same sort of profile as areas like Yarraville, Seddon, Spotswood etc.

 

[Bayside]

When I was looking at houses around Frankston I noticed Spray St & Bradshaw St always had a heap of places on the market. When I drove out to have a look at a few I could hear a constant hum from the traffic on the freeway at the back. Is there any main roads close? Lots of trucks?