Melbourne Auction Results – April 6th
Very few auctions were held on Easter Saturday as agents took a breather from last week’s monster auction weekend.
This Easter weekend marks the end of what’s been a very busy and almost frantic start to the year, as far as the Melbourne property goes anyway. Over 1581 homes were reported to the REIV, nearly 98% of the total number of properties, with a final clearance rate number of 77%, a very solid result.
Recent Study Shows You Need To Hold Property
A recent study by Research House Core Logic RP Data called the Pain and Gain report shows that just over 30% of vendors sold their property for more than double what they bought it for.
Analyst Cameron Kusher says the likelihood of a vendor making a profit is totally dependent on the length of time a property has been owned, he points to an example of this. If a property was purchased prior to the GFC ie Jan 2008 and subsequently sold during the Sept 2014 quarter only 5.2% of these resales made a loss. However, of the properties bought after January 2008 and sold in the September 2014 quarter, 15.2% made a gross loss relative to the original purchase price.
The report determined that properties which made a gross loss were held less than 5.7 years while those which made a profit were held for an average of 9.96 years. So in order to double your money when buying a property, the report suggests the average holding time is 16.8 years.
The above message is pretty simple, if you looking to make a quick buck in the property market think again, chances are you are likely to get burnt!
What The Agents Are Saying
Many agents I am speaking with are in disbelief at some of the results and the frantic pace of the current market saying, they have not witnessed anything like this market for some 30 years and really not knowing where it’s all going to end. Hopefully not tears for all involved?
Inside word has it that a Stonnington agent is on track to produce their best financial year on record with over 800 property sales – WOW!
