Real Estate

first home buyers still have to fight it outae in cooler market

Written by The ReReport

YOUNG homebuyers are still up against tough competition despite cooler conditions than recent years as they face the “strongest” end of Melbourne’s market.
This is the view of Advantage Property Consulting director Frank Valentic, who said those entering the market for the first time often faced a battle at auction.
“If you are a first-home buyer you still have to fight it out,” he said.
“That end of the market is the strongest one. And it’s really first-home buyers propping up the market at the moment.”

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A Sydney buyer purchased the two-bedroom apartment.

Mr Valentic said a two-bedroom unit at 8/1421 High St, Glen Iris sold for $615,000 on Saturday, October 20, with many first-home buyers knocked out of the short, sharp contest.
He said a young buyer from Sydney opened the auction with a $595,000 knockout bid, which instantly put the home on the market above its price guide of $520,000-$570,000.
This knocked out four or five first-home buyers in the crowd, and a few bids later the hammer fell with the Sydney buyer winning the keys, Mr Valentic said.

He said the result was particularly impressive as the property last sold for $520,000 three years ago.
The top-floor property features a central living zone with northerly aspect, modern kitchen and a balcony.
Hocking Stuart, Mt Waverley, handled the auction sale.

A first-home buyer scored the keys to a two-storey Heidelberg Heights townhouse after it passed in to them at auction, National Property Buyers Victorian director Antony Bucello reported.
He said the property in “immaculate condition” at 6/5 Dickens St attracted only a small crowd to auction, and Miles Real Estate auctioneer Gordon Whale kicked things off with a $460,000 vendor bid.
A first-home buyer made the only live bid of the day at $470,000, and the property was passed in to them, selling through post-auction negotiation for $485,000, Mr Bucello said, describing the sale as “a fair result for both vendor and purchaser”.

Another post-auction result was recorded in Glen Huntly, with the $960,000 sale of 11 Manchester Grove.
The two-bedroom semi-detached house passed in at $940,000 and sold shortly after auction for $960,000, Mr Valentic said.
It had a price guide of $950,000 to $1.05 million.
“There are more vendors now selling to the bottom of the quote range, which is very different to 12 months ago when buyers paid 10 per cent more than the range,” Mr Valentic said.
A similar property last year might have attracted four or five bidders, he added.
“Buyers are fussier and they have got no reason to rush — they can wait for opportunities to come up. They have got no more FOMO,” he said.

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