If you're shopping for property in Brunswick this Christmas, you're predominantly looking at two ways to buy: private treaty or auction. What is interesting to see is that these aren't just different avenues to buy real estate. The sales results from these different buying processes are often indicators of movement in the different ends of the market.
A 30 November CoreLogic report shows that in Australia, private treaties are the preferred method of purchase, with varying degrees in different states. In Melbourne, auctions respectively made up 31.9 per cent and 28 per cent of all house and unit sales in the year to September 2015. Considering these figures were less than 8 per cent for many capital cities, you might see why Melbourne is widely regarded as the nation's auction capital.
The report delves deeper into this topic, mentioning that auctions tend to consist of properties on the more premium end of the spectrum. While this is true to a lesser extent in this city, the generalisation can still be seen in the numbers. The median price of Melbourne houses sold through auction was $835,000. Conversely, this number was $491,800 for those that went through private treaty.
Treat yourself through private treaty
So, what does this mean and why should you care? If you're after affordable real estate in Brunswick, it could pay to take a look at homes selling by private treaty. While many people focus on auctions with the intent to get lucky and snatch a bargain, the notably lower median prices of treaty-sold homes speaks for itself. That being said, it doesn't hurt to examine homes that are being sold through both approaches, to cover all your bases.
For your real estate buying needs and advice, get in touch with Ray White Brunswick.