My brother just put his single fronted Victorian House to auction yesterday in Melbourne’s West.
Lots of people 30-40 showed up – but not one bid !!
Expected $320K + Vendor bid at 280K and that was it folks…
Hux! Your poor brother! His house didn’t sell and he still gets slugged auction fee and costs for advertising.
Maybe he should try on open market for a little while to see if there is interest?
Don’t forget it might have a lot to do with the stamp duty concessions for first home buyers… Maybe ,maybe not…
Dunno, wish him the best.
Scremin.[crying]Sorry to hear that Hux001,
But unfortunately there is a lot of that going around; that is, properties being “passed in” at auctions.
REAs are advising people to look at private sales in preference to auctions at the moment, because of this very reason. The clearance rate is quite poor in comparison to (as recent as) a few months ago.
Jo
Originally posted by Hux001:My brother just put his single fronted Victorian House to auction yesterday in Melbourne’s West.
Lots of people 30-40 showed up – but not one bid !!
Expected $320K + Vendor bid at 280K and that was it folks…
The market is a changin
A lot fo vendor bids dont even highlight the highest “real” at auctions.
The good news of course is that’s it’s heading well and truly for a buyers market !
I agree, the market is definately cooling off in Sydney. Great time buy real estate in Australia this year. If interest rates go up, even better
I don’t think its a buyers market just yet. Corrections almost always overshoot and then revert back to the mean. I’m not even sure that we are anywhere near the mean yet..
I have a friend who runs a real estate business over east who is into mortgage broking, off the plan sales, seminars and management consulting and the like. We went to school together and he has always told me what he really thinks of the property market..
He mailed me when ez-rent 2 got released and said “i like your new program but it doesn’t matter now because the market here has gone to s**t”
EZ-Rent. The free tax and cashflow simulator for Australian property investors. Version 2 out now!
http://www.ez-rent.comjust to show you how bad the
docklands in melbourne are at the moment
a unit auctioned saturday was bought off the plans
2001 for about 955k was sold for 715k
the rest of the market i think has gone down
about 10% toi what it was this time last year
This time last year 650 houses auctioned 70% sold
this year 450 auctioned 52% sold and most passed in with a vendor bid acording to todays AGE
yesterday auction clearance was 32% last year sunday was over 60%Originally posted by ez-rent:I don’t think its a buyers market just yet. Corrections almost always overshoot and then revert back to the mean. I’m not even sure that we are anywhere near the mean yet..
here here….well said EZ, this will take 2 – 3 years to play out.
My two cents is that Sydney has peaked… prices are dropping, bubble is deflating… I think for the next 6-12 months we may see more of that… then it should resume to more realistic growth rates…
Definately a buyers market – especially in NSW if investors try to offload before July 1st
Liz Wilson
Mortgage Lender
Sydney and Melbourne are different to the rest.
Heard yesterday from someone in one of the major developers that the market is dead.
problem is they can’t really drop price, because
of the pre sales.
When it makes the Sunday paper headlines it will be official.
Joe Average, won’t beleive it till then.I think there are at least 2 distinct residential markets with their own patterns and perculiarities. The unit market and the established housing market.
The unit market is in major trouble, and there will be blood in the streets. The established housing market is starting to soften but I can’t see any disasters befalling this sector, just small price yo-yoing.
Originally posted by kaloni:just to show you how bad the
docklands in melbourne are at the moment
a unit auctioned saturday was bought off the plans
2001 for about 955k was sold for 715kSounds bad but if they are an o/s buyer, when you take currency shifts into account, they may have broken even. Won’t help stabilse prices though.
Originally posted by ANUBIS:I think there are at least 2 distinct residential markets with their own patterns and perculiarities. The unit market and the established housing market.
The unit market is in major trouble, and there will be blood in the streets. The established housing market is starting to soften but I can’t see any disasters befalling this sector, just small price yo-yoing.
Disagree, when units in the city drop big time, buyer from Strathfield and Parramatta, will buy there. When the units in Parra Strath become “dead loss stones” (ppl are now walking away from deposits on Parra off the plan,) ppl buying town houses will grab cheap units.
Ppl buying cheap houses will grab the town houses and so on down the line.
Only a guess, no-one knows.Should make interesting viewing.
One of Harrys towers in Parra has a 20% occupancy a year after completion and I have lost count of town houses for sale on Old Nth rd between Baulkam Hills and Castle Hill, positively breathtaking. received a mailer on Breakfast point to put up a $2K deposit to be put on the expression of interest list….I don’t think its a buyers market just yet. Corrections almost always overshoot and then revert back to the mean. I’m not even sure that we are anywhere near the mean yet..If the correction overshoots, wouldn’t the best time to buy be at the trough of the overshoot (i.e. lowest price)? If you waited for the market to stabalise and reach the mean, you’d be paying a slightly higher price than if you bought at the extreme of the correction.
Matt
GMH454, I got same flyer for Breakfast point.
Me, I am currently looking at a couple of interstate deals and then will probably look at other investment opportunities outside property unless something really good pops up.
We have just calculated that if we sell our Cremorne IP (which is highly negatively geared), we will be up for a $15K tax bill to Mr Carr, Egan et al.
Something we are real happy about as you can imagine!
When you start looking at CG of 25% as well, it means our $170K profit (in two years) has decreased considerably.
Well I guess that is the reason why we work isn’t it, so we can give half of what we make to some government department somewhere along the line.
Roll on the next state election. Maybe the market may have picked up by then.
‘Eat rich food, barbeque a yuppie’ [greedy]
Bang on the money Matt.
Of course, its easier said than done and few will ever get it totally right. Look at the share market over 2001-2003. It was a dog and if you bought 1 year into the stock bubble bursting expecting a rebound you’d have been dissapointed as it really took 3 years.
It all comes down to defining and recognising ‘value’ I guess. I actualy find this easier to do in the stock market!
Right now I am looking for a new PPOR and I see so many good houses that have been on the market for ages and have had reduced prices. A lot of sales are falling through in my area as well because the buyer cannot sell their old house in time to settle on the new one.
Paul
[email protected]If the correction overshoots, wouldn’t the best time to buy be at the trough of the overshoot (i.e. lowest price)? If you waited for the market to stabalise and reach the mean, you’d be paying a slightly higher price than if you bought at the extreme of the correction.Matt
EZ-Rent. The free tax and cashflow simulator for Australian property investors. Version 2 out now!
http://www.ez-rent.comQuote:Originally posted by ez-rent:Bang on the money Matt.
Right now I am looking for a new PPOR and I see so many good houses that have been on the market for ages and have had reduced prices. A lot of sales are falling through in my area as well because the buyer cannot sell their old house in time to settle on the new one.
Paul
[email protected]
]Same with me EZ, and just as in a rising market ppl rush, when its slowing, you know you have choice and time, you can be very choosie and careful. You don’t pay a premium you want a discount.We are vacating our home and it will be a IP as we are moving somewhere bigger. We may wait untilthe forced sales.
Interesting to see what this weekend papers say.
Well it is official, prices are pretty much in decline across the board, no question. What is of interest though is how far people feel it will decline?
So what are your predictions on further price drops, in units, houses and per capital city?
I am not sure how far down it will go.
But we cannot sustain current prices when a young couple needs to find a $250k mortgage for an average Melbourne family home.
Back in 1997, I thought a $100k mortgage was a shitload of money.
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