Reaching new heights - Inner Melbourne

[jingo]

For locals watching/investing in inner city would like to know what you think the impact interest rates are having at present if any, is it too early.



Cheers, MTR

Hi MTR,

The action really starts this weekend with auctions. (Although there were some last weekend).

Will post some results after Saturday.

Regards Jason.

 

[MTR]

Hi Jason
thanks, its good to keep this thread alive, here's hoping values keep rising.

Cheers, MTR

 

[jingo]

Re: Results from Saturday

Hi everyone,

An update after Saturday's auctions - particularly in the wake of interest rate rises and economic turmoil....

I attended the auction of this flat in Nth Melbourne on Saturday.

http://www.realestate.com.au/cgi-bi...TRALIA&c=34786926&s=vic&snf=ras&tm=1203303030

The vendor had purchased this flat around a year ago for approximately $270,000 through Simpsons. They did a very basic tidy up - paint new carpets, left the kitchen and original stove and bathrooms etc. A very basic flat on the ground floor with no carport or carspace. Some security issues with the windows of the bedroom and kitchen overlooking a driveway to the side of the building, and the loungeroom opening up to the common area/garden with no fence. Sold just on the reserve for $360,000. Only 2 serious bidders, and a small crowd to watch this one. Agents had to work hard to achieve this result.


This townhouse in the afternoon was a totally different story.

http://www.realestate.com.au/cgi-bi...r=&cc=&c=34786926&s=vic&snf=ras&tm=1203303030

A large crowd. 5 serious bidders. The quoting range had been adjusted during the campaign from $420-$450 to $450-$490. It was heavily contested by 5 serious bidders, and sold to a first home buyer for $540,000. A great result!

This flat will be auctioned next Saturday. It has an undercover car space, and is well presented. The top floor position and views should help this one as well.
I will be interested to see the result!

http://www.realestate.com.au/cgi-bi...TRALIA&c=34786926&s=vic&snf=ras&tm=1203303030

Would be interested to hear of other's experiences/observations from the weekend. Are interest rates biting?? Clearance rate was 73% overall, and I noticed that the Age didn't have their usual commentary. Does anyone know why not? The commentary in the Sunday Sun mentioned that the clearance rate was back to 2006 levels. Interesting!!

Regards Jason.

 

[feihong]

my feeling for this year is that, if ripple effect is continuing to work its way through, then the units of mid-ring Eastern/South Eastern/Southern suburbs, inner Western and Northern suburbs will lead the way. At the same time, houses with land of outer Eastern suburb will pick up strongly too (these are already happening). From my own observation of Glen Waverley, Mt Waverley, and Wheelers Hill area, 2bedroom units in good condition are fast approaching 400k mark, while 3 bedroom units are approaching 430k-480k mark. They were selling for ~50k less 6mths ago. From the info I have obtained from my friends, this is apparently happening in Nunawading and Mitcham as well.

 

[Twitch]

Reading between the lines of the Sunday Age auction wrap-up blurb, it seems as though the market has now cooled. That's my interpretation anyway, although I haven't gone to an auction this year to see first hand.

 

[GoAnna!]

My observation is that auction results have now consistently cooled from their highs of nearly 90%.

 

[Pete_d]

Auction clearance rates in Melbourne were down to 72% for the weekend just gone. The lowest since 2006.

 

[jingo]

Reading between the lines of the Sunday Age auction wrap-up blurb, it seems as though the market has now cooled. That's my interpretation anyway, although I haven't gone to an auction this year to see first hand.

My thoughts too Twitch. Better no news than bad news!

Well, we have just had valuations come back - very good news - but obviously based on December results. Currently locking in LOC's to weather the storm.........

 

[poperr]

I know this is on a different thread, however do you think the above discussion applies to only inner Melbourne and not to outer suburbs that have not yet experienced any growth??

 

[jingo]

I know this is on a different thread, however do you think the above discussion applies to only inner Melbourne and not to outer suburbs that have not yet experienced any growth??

Hi popeer,

I don't really know to be honest. Suffice to say that many outer areas experienced an increase in values late last year, between September and December. The current climate is very tricky to gague!

Consisting of all of these elements:

1) Subprime scares daily (Bad for confidence - Share market jitters)
2) Higher interest rates throughout the year (Bad for confidence)
3) Higher inflation (Leading to higher interest rates)
4) Shortage of Labour (Influencing inflation, but indicating a strong economy).
5) Shortage of available housing (Increases pressure on prices, and rents - Good for us!)


Please add to the list - there are probably heaps of other economic influences that I have left off!

Regards Jason.

 

[jingo]

My observation is that auction results have now consistently cooled from their highs of nearly 90%.

Thanks GoAnna - looks like the slide is on! Now at 73%! Wonder what it will be next weekend.

Regards Jason.

 

[Soren Lorenson]

Jason, your correct,

I think its mostly a confidence thing, that's exactly what we need to RBA to do, threaten more rises, to slow the spending.

I guess over the next few weekends we will be able to gauge the demand out there.

 

[DavidMc]

Ahhh I love how property is nice and slow. I now have about three months to do a revalue