Very low new stock levels for Melbourne family homes: Mal James
Melbourne buyers seem in general to have lost interest in the million-dollar-plus housing market, according to Melbourne buyers’ agent Mal James.
“But it’s not as boring out there as you might think,” James says.
“Just as some new AFL coaches bobbed up, so have a few interesting homes, and you should revisit your contacts to see what new offerings are on the horizon.”
He suggests the websites are showing a few more homes in the top end than they have for a while.
‘This is due to the selling agents planning an extended campaign around the grand final while still trying to get the home done and dusted prior to the Melbourne Cup,” he says.
He says the market has five strong themes:
- Very low new stock levels for family homes
“Stock levels have been below average for months with not one $100 million auction weekend in late winter or early spring for bayside and the inner east and it seems this will continue until at least after the Melbourne Cup,” James says.
- Upper end has some strength.
“More than one $3 million a day offering has been sold in Melbourne during September,” James says.
“We are still down on last year in terms of activity, but last year was a bumper year. So far it has been pretty much a normal September at this price level in terms of activity and price.”
- Lower end of the $1 million-plus plus market is getting weaker
James says more properties in the lower end of the $1 million-plus market are being passed in, they are staying on the market for longer and they are attracting fewer bidders.
- Well priced A-grade homes are selling
However, he says poorly priced B-grade and C-grade homes don’t sell, unless they are discounted.
- Bayside appears considerably weaker than inner east
James says the inner-east market of Toorak, Malvern and Hawthorn is performing far better in the $1 million to $2 million price range than the bayside suburbs of Brighton, Hampton and Sandringham.
Mal James is principal of James Buyer Advocates, which advocates on behalf of buyers of property over $1 million. Mal writes weekly auction reports, advice and in-depth market analysis on James' website.
