40 Juliett Street, Enmore
Bidders freeze as winter bites
The property
40 Juliett St Enmore is a 3 bedroom, 2 bathroom semi detached home. It is over two levels with a nicely done outdoor area designed for entertaining. It has character and charm, combined with modern renovations to make for easy family living. No parking is available but it is located on a quite tree lined street where parking is not a major issue. Total land is 201sqm - fairly average for the area.
The property was renovated some time ago, but still has a modern and fresh feel to it. It appeared to be tenanted at the time of sale. Very few owners would leave their washing hanging out the back on auction day!
The location overall is pretty good. The lively lifestyle of Newtown and Enmore, while living on a quiet street. A 15 min walk to Newtown station, down the road from Enmore park, and key proximity for Newington College. A stone’s throw to the Marrickville Metro shopping centre and a local favourite cafe White Rabbit.
The address itself, house number 40, may have deterred some buyers as the number 4 is believed to be bad feng shui.
The property last sold in July 2016 (a time of market peak) for $1,900,000. This was off a guide of $1,600,000 so not really a bargain buy at the time.
The sales campaign
The property came to market mid winter 2023. There is little stock, it is the start of the new school term, and continued buyer uncertainty about interest rate moves. The property was marketed by the same agency to sell it in 2016, Ray White Erskineville.
The campaign included six weeks on market (a little longer than most) and the property was not presented with a price guide. This can be confusing for buyers as it does not give any insight into where the vendor’s expectations may be sitting. It can sometimes be a sign of unrealistic vendor expectations.
The Auction | ~2 registered bidders | 0 active bidders
A great crowd
Ray White auctioneer Tim Snell, a seasoned professional wasted no time in summarising the key features of the property. I wondered if he also had tickets to the Newtown Jets Home game kicking off a couple of hours later! There was a great crowd turn out enjoying the winter sun, spread over both sides of the street. The two registered bidders were standing at the front, one to either side of the auctioneer.
Tim called for an opening bid. It was almost like he knew he wasn’t going to get one. The ask was for an opening bid in the “low $2’s”. To me, this means maybe $2.1m, definitely no more than $2.2m.
The vendor bid is played
NSW auctioneers are allowed to place one vendor bid and this must be disclosed as such. After 30 seconds since calling for an opening bid, Tim placed a vendors bid at $2,300,000.
A little higher than my definition of “low $2s”, but I’m not there to try sell the property. Often auctioneers will place a vendor bid high to ascertain the reaction of those registered. A person’s body language and reaction can give away to the sales agent and auctioneer if they are still within the range, or if their maximum has been far surpassed.
The agent walk around…
As no bid came back to the auctioneer, the lead sales agent, Ercan Ersan approached both registered bidders. Neither clearly had any intention of placing a bid over and above the vendor’s bid of $2,300,000.
With that, and in a total of 2.5minutes since we started, the auction was passed in on one vendor bid of $2,300,000. A far cry from how the auction played out seven years earlier when the current owner purchased it!
So what does this say about the current market?
Buyer’s remain cautious in the market. Spooked by fears of future interest rates, they’ve seen their borrowing power diminish significantly since mid last year and many believe prices are falling and have a fear of over paying. There are definite signs of a winter slump, or as I like to call it, a hugely opportunistic time for buyers.
Stock levels remaining low is about the only factor holding prices steady in the current market.
Just days earlier, 19 Simmons St Enmore had sold for $2,385,000 a 3 bedroom home on the same size land. The difference? It came with off street parking for three cars - an absolute rarity in this area. Then there was 134 Probert Street, Newtown which was another 3 bedroom, 2 bathroom and no parking that recently sold for $1,950,000. It is on 132sqm of land so a much smaller block.
Based on these sales and others in the market, on the day, it felt like the value sat somewhere between $2,100,000 and $2,200,000. Markets are dynamic and this current one has prices being set by conservative buyers. If an owner does not want to meet the market, then they find themselves without a single bid and passing the property in.
Post auction - update 27 July 2023
Post auction the property was then listed for sale. The sale price was listed at $2,350,000
Post auction - update 22 August 2023
The property was sold on 22 August 2023 for $2,250,000 ($50,000 lower than the opening vendor bid of the auction!)
