How much is too much?

We took a bit of a beating this weekend, and last weekend, which tells me that the market is still firing on all cylinders in Melbourne. (1162 Auctions- 77% clearance weekend 30 April -2016)

What do I mean by a beating? When a property is on the market for $750,000 (our bid) and then sells for $901,000, well, that’s a bit of a spanking. How about something that’s on the market at $1.25mill (our bid again) and takes a quarter of a million in bids on top of that price to close it out? Owch!

But are both of these results “too much”? Well, I’d love to say yes, but the reality is they were both winning bids at auction. This means there was someone else willing to pay almost as much on the day. That, in itself, is a clear indication of true market value. Even if the market appears to be on drugs. It’s too much for us, but it’s not too much for the market based on similar bids. So when the crowd screams “they paid too much” is that because it has been determined that a certain price is fair and equitable, or is it simply frustration at the ever increasing cost to get into certain property? Sure, it’s a bitter pill to swallow, but at 1100 auctions a week, 260 of which didn’t sell, there’s always next weekend. Sometimes it’s just not your weekend.