Balwyn: The hockingstuart mid-2012 autumn property review
A good turn-out at open for inspections is one of the first indicators that the market’s kicking off – four months into the new year, that’s exactly what we’ve been witnessing in Balwyn. We’ve gone from having four or five people turn up at our opens late 2011 to groups of up to 30 this year – and this is also translating into auction attendance, with our biggest auction last weekend drawing a crowd of 60 people (pictured).
Prior to our first set of auctions kicking off late February, we were already seeing strong signs of confidence returning, with nine private sales taking place in January alone – a record number compared with the usual two or three in previous years. Everybody’s been saying for a long time “save your money or pay your mortgage off before you make your next move”. It’s clear people have listened and are now in a better position to upgrade their lifestyle.
The issue in Balwyn though, is that buyers are ready but the stock is in short supply – not dissimilar to what’s happening around the rest of Melbourne at the moment, but low stock levels has always been a challenge in Balwyn, even last year. So we have an auction-oriented market with properties selling quickly – on average we’re holding six or seven auctions per weekend sometimes up to nine or 10 – and with clearance rates of at least 80%. March in particular was an exceptional month, with 25 auctions and a 90% clearance rate (compared with an average clearance of 65% in November and December).
Our first super Saturday was also a success, with only one property out of 12 passed in – indicative of the short supply in Balwyn and high demand for quality homes. The most astute vendors are reading the market well and seeing an opportunity to put their property on the market when listing numbers are low and there’s little competition against similar properties. They’re also continuing to lean towards auctions because it gives them three opportunities to sell; pre-auction, at auction and post-auction. Buyers also tend to look at auction properties first as they know there’s a limited window of opportunity to buy them and they get snapped up more quickly.
The most popular Balwyn properties are post-war 1950s three-bedroom cream or red brick homes – they sell nearly every weekend in excess of the $1 million mark. The property at 25 Winmalee Road Balwyn is a classic example of the older-style home, recently selling for $1.05 million.
While we have a typical type of house, one thing we don’t have is a typical buyer. Compared to Richmond, for example, where young couples and investors dominate the market, Balwyn boasts an eclectic mix of buyers. It’s for this reason that units such as this one on Greythorn Road sell well – they’re suitable for a multitude of buyers, from young families to investors or older couples scaling back.
The number of enquiries we’re getting from potential vendors on a weekly basis is also growing – not dramatically, but we’re seeing the market balance out as buyer and vendor expectations start to align. I’m predicting that once Easter and the school holidays are out of the way, May will be our busiest month yet.
The market will remain steady but we may start to see a mild increase in values later in the year – we’re talking 3% to 5%. Days on market will start decreasing and stock levels will steadily start to increase once vendors realise the market’s picking up.
In terms of sale prices the market can be summed up with one word – realistic. Most sales are meeting expectations but not exceeding them. We’re seeing sales occur within the designated price range or slightly above reserve; they’re creeping there and just making it. Vendors are more realistic about market value, buyer confidence has grown but no one’s over-excited – not just yet.
Toby Parker is director of hockingstuart Balwyn