Steady She Goes
The good old girl (the market) throughout the year has been healthy, she’s been hotting up and so prices throughout the Inner West have naturally risen. Where is she heading? Vendors expectations are up when they see other properties in their street selling higher than comparable sales suggest and so this domino effect is occurring throughout the Inner West. With interest rates at historical lows, buyers are often stretching their budgets and there is definitely a fear of missing out prevailing in the marketplace.
In the last month, we have experienced a high proportion of our auctions selling above the reserve and we expect this trend will continue right through Autumn. When confidence improves and results start surpassing their reserve, the number of vendors opting to sell via auction increases so it is interesting to note the direction consumer sentiment is taking.
The consumer sentiment data arrived from Westpac and the Melbourne Institute. The reading of consumer confidence fell for the fourth consecutive month and moved below the 100 mark, highlighting how optimists and pessimists are equally balanced. With a reading of 99.5 the index is virtually at a neutral setting. One of the questions asked in the Consumer Sentiment survey is ‘where is the wisest place for savings.’ Over a quarter of respondents think that real estate is the wisest place for savings, the second most popular option after ‘financial institution’ (33.9%). On the other side of the fence, confidence has also lowered due to the growing unemployment rate.
(Source: RP Data.com)
Auction Highlight
68 Parker Street, Williamstown.
On a beautiful established street, a large crowd of over 60 onlookers were sufficiently intrigued to watch respected Auctioneer, Nathan Johnson speak fondly about the three p’s which are position, potential and price. He painted a descriptive opening which touched on how close this well worn semi detached Victorian is to the CBD. Within seconds after his prelude, a hand went up and minutes later, multiple people were competitively vying for this property. The vendor’s expectations were exceeded as this property sold for $636,000 while the marketed price was $490,000-$530,000.
Vendor’s Perspective
“I found it so nerve racking! To achieve $636,000 is amazing though. When I walk into the lounge room now and still see my grandparents furniture, memories flood back. I’m finding it very emotional but I’m so happy with the result and I found the experience with Compton Green excellent. The owner, George lived here from two months until he was 86 so it’s a very much loved home.” Jill (Vendor of 68 Parker Street, Williamstown.)
Vox Pop
With the recent release of consumer sentiment data, we set out to tap into the minds of a couple of people in the crowd. Do you see the glass as half full or empty?
“It’s a hard question to answer. We’ll have to see how interest rates go but the glass is definitely half full for those wanting to sell properties.” Wade & Cristina.
“I’d say it’s half empty right now. It’s very hard for first time owners, especially those wanting to be close to the city. Two years ago when we were scratching the surface and looking at property, the conditions were so different. It’s definitely on the sellers side now.” Yvonne & Falani.
