Money Minute – October 30 2017 What The Block Taught Us

What the block taught us

It was a grand finale of The Block – and like always, it was a massive demonstration at the state of the Australian housing markets.

But I also think it tells us plenty about the resilience of Melbourne market right now – the strongest its ever been.

Now, there were 1700 auctions in Melbourne over the weekend – an all-time record.

Now, the earlier report from Corelogic suggests that clearance rate in Melbourne is 71.7 per cent, down from 77.5 per cent last year.

Sydney – where the property is clearly cooling – had a clearance rate of 64.1 percent, down from 80.5 per cent same time last year.

Brisbane – clearance rates are down a little, Adelaide’s are certainly hanging in there.

Tassie and Canberra are very strong, and the Perth market is notably stronger. In my mind, the best property bargains in the past 12 months in the country have been in the West.

But let’s go back to The Block and what its taught us – if you’re selling a property in today’s market, you’ve got to think about the perspective buyer.

Now, if Josh and Elyse had comedian Dave Hughes in mind as they were renovating, is another matter. But clearly – all the features suit a family. Josh and Elyse won The Block with their property selling $447,000 above Reserve.

It was more nerve racking for others though, more similar to what typical sellers go through. Sweaty palms  and anxious moments. Jason and Sarah  got $387,000 above reserve – great result! Though poor old Jason would blow a fuffah-falv .

Sticks and Wombat – it was almost like people felt sorry for them. They got $130,000 above reserve. Which I got to tell you in a mature market, is a really good deal.

Then, reality hit for Ronnie and Georgia. They initially didn’t get above reserve, so the property was taken off the market. Which was canny cause the real buyers has turned up looking for a bargain, and it sold after auction for $161,000 above reserve. There was a lesson there.

Finally, Clinton and Hannah, $2.615million  – so $95,000 above reserve.

So you got to be realistic, they are all brilliant results. But it does say that buyers and sellers have to be realistic about price – after all, you’re a long time paying off a property.

Markets

The Dollar 75.75 US Cents, The Dow Jones Index of US Shares up on Friday by 33 points.

Quicklinks to recent Money Minute progammes

Money Minute – October 27 2017

Money Minute – October 26 2017 “Odds on Crown”

Money Minute – October 24 2017 “Tough on Corporate Crime”

Money Minute – October 23 2017 Corporate Dramas

Money Minute – October 20 2017 Fast Running Out Of Options

Money Minute – October 19 2017 Mining Giant Fraud Charges

Money Minute – October 18 2017 NBN Complaints Soar

Money Minute – October 17 2017 Power Struggle

Money Minute – October 16 2017 30 Years Since Black Monday

Money Minute – October 13 2017 10 Beers Too Many

Money Minute – October 12 2017 Bart’s Bum and Takeovers

Money Minute – October 11 2017 Banks Push for your Trust

 

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