Ahhh- why not add this article to the pot. Thing is, I guess if there is less supply, prices could actually go up?
Your thoughts… [biggrin]
kay henry
Hi Kay,
Lower sales numbers doesn’t necessarily mean lower supply, it could be lower demand. However the tightening of supply would have a positive effect on prices as you’ve pointed out.
I guess you need to “Watch this Space”, there could be some opportunities if the market has turned.
Cheers
JeffWell one thing’s for sure, if turnover has dropped 27% the agents won’t be happy, the banks won’t be happy, the mortgage brokers won’t be happy … no-one’s making money if the market ain’t moving.
dmichie, have you heard of refinancing and debt consolidation?
Have you not seen flows of funds moving from property to the stock market when prices flatten or decrease?
There are still people making money out there because they open their other eye and look for ways to make money whichever ways markets are moving at the time.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by kay henry:I guess if there is less supply, prices could actually go up?
I don’t think there is an issue with supply. Try monitoring a suburb in Sydney (or just about anywhere else in the country) on Realestate.com. Count the properties for sale. You’ll find that numbers of listed properties are on the increase. It’s simply the sale volumes that are down.
The increase in median sales price is more likely a reflection of the type of properties changing hands… although if the REINSW use the same dubious recording methods as their Victorian cousins I would ignore their numbers altogether.
Bear in mind that such organisations are currently between a rock and a hard place – trying to convince the RBA that the market has ‘softened’ dramatically, yet maintain Joanne Average’s belief that house prices are rising.
Cheers, F.[cowboy2]dmichie, have you heard of refinancing and debt consolidation?Of course, but you can’t tell me a lot of your (former) business isn’t people buying new properties.
look for ways to make money whichever ways markets are moving at the time.But the market isn’t moving that’s the point. Its a standoff between vendors who want too much and buyers who won’t pay enough.
Originally posted by dmichie:Of course, but you can’t tell me a lot of your (former) business isn’t people buying new properties.
I don’t know about anyone else, but I chose to work as a mortgage broker because when prices are going up, people buy. When prices are going down or not moving, people refinance and consolidate. There is some impact with numbers dropping but it is minimal to a good broker.
But the market isn’t moving that’s the point. Its a standoff between vendors who want too much and buyers who won’t pay enough.The market extends beyond the Northern Beaches.Also, my ‘market’ comment was not restricted to property investment. There is an investment concept called ‘diversifation’ which helps prevent the impact of a decline in one sector adversely affecting your overall portfolio. I think anyone who focuses on only one sector would be facing problems at some point.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksOriginally posted by foundation:
The increase in median sales price is more likely a reflection of the type of properties changing hands… although if the REINSW use the same dubious recording methods as their Victorian cousins I would ignore their numbers altogether.
Bear in mind that such organisations are currently between a rock and a hard place – trying to convince the RBA that the market has ‘softened’ dramatically, yet maintain Joanne Average’s belief that house prices are rising.
Cheers, F.[cowboy2]Agree completely. My guess is REI turned those figures inside out to find some angle indicating that “now is a good time to buy”
Wonder if they have a statistic on how many “new agencies ” have folded in the last 18 months.
Agree completely. My guess is REI turned those figures inside out to find some angle indicating that “now is a good time to buy”Yes, we desperately need an independent regulatory authority in this country where actual sale prices are accurately (and promptly) recorded, and statistics made freely available to the public.
See the “Where to get actual sale prices?” thread:
https://www.propertyinvesting.com/forum/topic/17572.htmlHi, Everyone,
I am a beginner in the market.
I read the article and quoted the following “
The median sale price of a house in Sydney during the March quarter was $511,000, an increase of 1.2 per cent on the previous quarter….” Sorry I am in Perth. Can anyone give me some idea for what kind of house could be median in Sydney such as — how far to the CBD? How far the the beach? How old is the building? Is a 3×1 or 4×2? without these information, I have no idea what it is talking about?The median sale price of a unit in Sydney rose 2.7 per cent to $380,000.
Sydney market is busted, people are going broke left right and centre, banks are cutting their losses and relocating in China and Pakistan, the current recession makes the thirties look like a picnic I am diggin out a bunker in my backyard to wheather out the bad times, stocking up on no frill food …. [baaa]
Come on people join in it is dmichie’s birthsday!!“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
Marc
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