After what felt like an endless period of lockdown, it’s hard to say whether it was buyers, sellers or Noel Jones’ own agents who were more excited when it was announced at the end of September that a number of Real Estate activities could resume. So, what are we seeing, and what might be in store for the remainder of 2020 and beyond?
In early November, Michael Yardney, director of Metropole Property Strategists reported that the ANZ-Roy Morgan Consumer Confidence Rating had increased to 99.9, 5.7pts above the 2020 weekly average; it was the ninth straight week of increases, taking it to the highest point since mid-March 2020. In the same week, confidence in the Australian economy also increased 12%.
Paul Leydin, Partner and Auctioneer at Noel Jones Blackburn agrees that he is seeing this confidence reflected in the marketplace. Vendors who were hesitant to sell at the height of the restrictions are now setting plans in place, and buyers are out in force.
He said, “On the weekend, I conducted my first auction since being back. I had 9 bidders registered, and 7 of them put their hands up across the span of the auction which had 49 bids, before selling for $140,000 above vendor expectation”. Registering to bid is commonplace within several Australian states, however, it’s a practice that has only been adopted in Victoria since tight restrictions on the number of attendees at auctions was introduced. Paul believes that this may lead Victoria to adopt this practice long-term, aligning us with the likes of NSW, QLD and SA.
The Domain House Price Report displays no change in the median house price for the September quarter, which is promising, considering the unprecedented operating conditions across the period; in spite of all 2020 has thrown at us, prices are still 1.6% higher than they were this time last year.
Michael Muncey, Director and Auctioneer at Noel Jones Mitcham agrees prices are buoyant, and lists his best-sellers as family homes, quality townhouses and where priced correctly, properties suited to entry level buyers or those wanting to knockdown, rebuild, or develop. He believes in coming months we will see how robust the market really is. “We are not back to the heights of the 2017 market peak, but the first quarter of 2020 saw us heading there, and with interest rates at an all time low, there’s never been a better time to buy or sell’.
He also believes that the Eastern corridor where Noel Jones predominantly operates will continue to increase in popularity as buyers reassess their work-life balance in a COVID-normal world. Suburbs such as Mitcham and Blackburn offer the perfect compromise to those who have leaned towards inner city living in the past, being positioned at a central point between the Mornington Peninsula, the Yarra Valley and The Dandenong Ranges, yet still within 20km of the CBD.
Industry experts predict that the traditional wind-down of the market in early to mid-December is unlikely to happen this year, with a greater likelihood that activity will continue until Christmas, with a resumption in early January. Both Paul and Michael share this sentiment and reassure buyers and sellers that Noel Jones agents will be there to meet their needs as we farewell 2020, and welcome, what many believe, will be an incredibly prosperous 2021.