THE MARKET HAS SLOWED DOWN EVEN FURTHER over the past four weeks. It was a busy weekend of auctions on Dec 13th/14th, but in most cases it’s been the same story of either one keen buyer or no keen buyers for a lot of homes. More transactions than usual have been happening in the days prior to auction or the days post auction, with the key feedback from a number of agents being that there aren’t many buyers keen to show their hands and make bids.
THIS ISN’T ALL AUCTIONS BUT IT’S A GOOD SNAPSHOT. Over the past three weeks, we’ve been successful bidding against three parties in Hawthorn (circa $3m), missed out in Preston against two others (circa $1.5m), missed out in Kooyong (circa $10m, one of five parties in a first-and-best offer scenario), bought prior to auction in Malvern (circa $8m) and bought at auction in Middle Park (circa $3m).
The general theme with these properties is that they were either A-grade homes in A-grade locations, or priced properly, or both. Most of Spring it’s been the case that any property that is priced optimistically (ie, over-priced) or isn’t very well presented has struggled. This has only been magnified in the past month, as it seems that each week more and more buyers have been underwhelmed by market offerings and have elected to take an early Christmas holiday.
We helped a client of ours sell in Surrey Hills in early November (circa $2.7m, passed in at auction and sold shortly thereafter) and the selling agent’s comment last week was “it’s a good thing for the vendor we hit the market for early November not December”. This is ringing true in most market segments we’re currently active in.
“OFF MARKET” LISTINGS HAVE ALREADY STARTED UP and our inboxes are being hit every hour with a ‘sneak peak’ or ‘VIP opportunity’ to buy a home that will most likely be formally advertised in late January or early February.
As we noted last month, ‘Off Market’ invariably means ‘Pre-Market’ this time of year in the majority of market segments we work in.
Few of these are act-now-or-miss-out propositions in mid to late December, but we review all of them nonetheless and we arrange inspections as needs be. There’s sometimes a real opportunity to strike a deal with a vendor keen to de-risk their own next move.
We strongly suggest a sense of caution before jumping on an off-market opportunity. Sometimes it’s a fishing expedition for the vendor and the agent rather than a genuine attempt to sell, and other times it’s a bona fide chance to secure a great home before everyone else sees it next year. Being objective and risking missing out is better than jumping in and paying too much because there’s an implied sense of urgency.
YOUR ON-MARKET STRATEGY IS IMPORTANT and needs just as much if not more attention than your off-market strategy. In the past month or so, we’ve bought well in Hawthorn, Malvern and Elwood by being ready to pounce as soon as the right property came up. It’s kinda helpful to remember that if you really like something, there’s a good chance others will too – the location, the views, the character or the renovation, whatever it is, the chances are that your tastes aren’t particularly unique. And so, being ready to make a strong offer becomes super important.
You need to have done all the homework to be in this position – things like knowing local sale prices and values, having your finance pre-approval locked in (VERY important!), knowing your building inspector’s name and phone number, and/or having your current property ready to put on the market.
We discussed this a few months ago and noted then that the search for the right new home is often a lot quicker than you think it’ll be. If that’s likely to be the case (hint: it is!) then there’s no reason to wait for that moment to start getting ready. Every month we benefit from competitors not being ready to buy, and we often try to jump-start the purchase process as soon as we know our clients are keen.
AND YOUR SALE STRATEGY IS JUST AS IMPORTANT to make sure you can get everything done when the moment arrives. There’s a long list of tasks on this side of the fence, including:
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What’s your current property actually worth? Not on a good day, not if two people fall in love with it, but what can you bank on getting for it if you sold it today?
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What (if anything) does it need to get it ready for market, both to make it more valuable and also to make it easier to sell?
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What is the sale process going to cost you? Commissions, moving costs, stamp duty (not a sale cost, but still), capital gains tax…
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Which agent will you use?
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Which method of sale?
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Will you move out for the sale? Or can you handle getting the property ready two or three times a week while still living there?
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If you sell first, where will you go if you can’t find something to buy before settlement?
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If you buy first, can you line everything up to avoid bridging finance?
These are some of the bigger questions, and there are a couple of dozen smaller ones. If Autumn 2026 is going to be the time you start looking in earnest, then please spend some time over the break thinking about this stuff.
THAT'S IT FOR DECEMBER, AND FOR 2025. The end of the year is upon us, and for most agents and advocates it is a welcome time for a break. The Autumn 2026 market will be a real test and perhaps a signal of how the rest of the year is going to behave. Being ready to go will be a BIG advantage if things start back uncertain, or if they start back hot.
The best time to have bought a new home was ten years ago, and the second-best time is when you’re ready. If you’re ready now or getting ready, please get in touch by emailing info@melbprop.com.au.