The Market Isn’t One Market

If you’ve been following the headlines lately, you’d be forgiven for thinking it’s a buyer’s market across the board.

Clearance rates have been hovering below 50%, prices have softened in some areas, and there’s certainly more hesitation than we’ve seen over the past few years. And while all of that is true, it’s only part of the story. A 50% clearance rate also means that around half of all auction properties are still selling under the hammer. On top of that, many of the homes that are passed in on auction day go on to sell in the days or weeks that follow.

So why does it feel so inconsistent?

Because not all properties are equal.

There is still a genuine shortage of quality homes across Melbourne. Many of the properties that are struggling to sell have compromises. They may require significant renovation, have poor floorplans, be located on busy roads, or simply have vendors with unrealistic price expectations. But when a genuinely good property comes onto the market, buyers still compete.

Last week we missed out on a property for a client. It was a good home and we knew it would attract interest. We put forward what we believed was a strong, competitive offer—already above the advertised price range—but another buyer was prepared to pay a further $20,000 above where we saw value.

Then, over the weekend, I observed an auction where the property sold for $93,000 above the top of the quoted range. It was a quality home in a popular price bracket, and there was strong competition from multiple buyers.

Of the four properties we purchased for clients in June, every one was a high-quality home that bucked the trend dominating the headlines. While the media focused on falling prices and weaker clearance rates, we executed purchases for our clients while other buyers hesitated.

The point is that buyers need to recognise when they’re looking at a property that is likely to attract competition. That’s one of the biggest parts of my role as a buyer’s advocate. It’s not just about assessing value. It’s about understanding buyer demand, reading the competition, recognising which properties are likely to become competitive, and helping my clients decide whether to compete, walk away, or even implement an aggressive strategy and execute a purchase before they’re standing in the heat of an auction with more buyer competition. 

Sometimes that means encouraging a client to stretch with confidence because the property genuinely warrants it. Other times it means telling them to let someone else overpay and wait for the next opportunity (which is often a much more suited property).

The headlines are useful, but they only tell part of the story. The real market is happening on the ground, one property at a time. Understanding which homes are likely to attract competition—and having a clear strategy before you fall in love with one—can make the difference between buying well and missing out.

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