Spring buyers get in early in Brunswick: Hockingstuart

Spring buyers get in early in Brunswick: Hockingstuart
Jonathan ChancellorOctober 9, 2012

The property market tends to be seasonal, with spring typically the busiest period of the year. This year in Brunswick we noticed a new trend in buyers trying to beat the spring rush, with more emerging in August than ever before. This early arrival could be a signal of improving confidence, but it’s also a reflection of people – sellers and buyers alike – realising they’ve waited long enough to make that move.

So for us, spring has sprung early. In August we sold properties that were passed in during the earlier winter months or even six months ago. What’s happened is that sellers and buyers are finally aligning in their expectations, and deals are being negotiated now that weren’t possible before. For example, earlier in the year, two-bedroom single-fronted homes in Brunswick weren’t selling because sellers were still expecting prices in the early $600,000s – values achieved at the peak of the property cycle. Today, sellers’ expectations are becoming more realistic with current market conditions, with these properties, including this one at 97 Glenlyon Road, now sitting around the $550,000 mark and within reach in particular for first-home buyers.

Interest rate cuts are also fueling activity in the area, with first-home buyers out in full force as a result of increasing affordability. Just recently, we sold an apartment in Blyth Street, Brunswick, that had so much competition there was a crowd of disappointed bidders post auction. Inspired by the demand, another owner in the same complex decided to spontaneously sell his property on the same day.

Next-home buyers are another massive market in our area, particularly with families looking to upsize. Brunswick is a more affordable alternative to its neighbouring suburbs of North Fitzroy and North Carlton, so properties like 7 Garden Street are great options for these buyers – it’s located right on the city fringe and within Brunswick’s main shopping and eating districts, Sydney Road and Lygon Street.

 


 

Another trend we’re seeing is the emergence of the “discerning” buyer. In a buoyant market, buyers are quick to enter the market for fear of missing out. In today's conditions, people are no longer freely buying, and instead taking the time to determine whether the property is really what they’re looking for – unless it fulfills 85% of their criteria, they’re happy to wait. This does mean, though, that when a quality property comes on the books, it’s immediately snapped up.

Accordingly, a trend gaining traction in the Brunswick market is properties selling before auction. Given the demand for good quality properties in the area, buyers are happy to cough up the cash early to secure their ideal home, and vendors are also coming to the party now their expectations have adjusted to market conditions.

Having said that, the auction market in Brunswick is still going strong, with hockingstuart’s clearance rates in the area sitting around 80%. At the same time, private sales are becoming increasingly popular, some taking just one to two weeks to complete – recently we even sold a two-bedroom warehouse conversion in Brunswick in just three days.

This spring, we’re expecting the last weekend in October to be a ripper, with the highest amount of properties up for auction in Melbourne since 2010. Longer term, the market will remain steady and statewide clearance rates will stay around 60 to 65% thanks to successive interest rate cuts.

Brunswick buyers will remain in the driving seat, with growing families taking advantage of current conditions. As a result of a fluctuating share market, investor activity will also stay strong as they look to add real estate to their investment portfolios.

After holding back for nearly two years, Melburnians finally have the confidence to go ahead with important life decisions and the market is starting to see a gradual but sure spike in activity – we expect it to be no different in Brunswick, with many buyers and sellers already ahead of the game.

Robert Elsom has 15 years' experience in real estate and is director of hockingstuart Carlton, Brunswick, North Melbourne and Northcote.

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Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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