What is happening to the property market

End of financial year, it is winter (traditionally slow market), coming up to school holidays, you name it.

Agree with Fredo.

Loads of investors (mostly mum and dad investors) were sold into the idea of building in Point Cook through a number of companies in the name of “wealth creation”. Point Cook has enjoyed substantial growth in recent years. Many of these houses have now been completed, the investors are realising the consequences of an oversupply of housing with regard to sales and renting. Add to that, a general flat market. Which is why Point Cook is now flooded with houses for sale. Investors can get better returns elsewhere right now, rather than having to wait those extra years for the balance of demand and supply to come back.

Great job. Few buyers came into sight this Easter – but the market is not equally depressed in all regions. Asking prices are up everywhere except the West Midlands and East Anglia, according to Rightmove.. I have contacted a number of my friends within the industry and they are experiencing the same thing. Some are saying the activity is worse then the GFC. I also believe the GFC is hurting us more know than during the GFC it also fear mungers as people are more cautious now. Thanks you for sharing this information.

Hi Everyone, I used to work in real estate and I remember for a good couple of years the demand was very high and supply was very low.  It’s true that a lot of the buyers where Mum and Dad investors who got caught up in wealth creation “etc”.
Why has the market slowed down? This is just my opinion I am no expert. 1)      Price of  homes are still overvalued 2)      A lot of people cannot get loan t o service the homes because of high cost of living and other factors3)      There are so many homes for lease that its not even funny. I sold a house to a guy in a great located two years ago I bumped into him last week and he said his house has been for rent for a while and even at a very affordable rate he still can’t get it leased out. 4)      A lot of people are loosing their jobs and business have slowed down a lot Everyone looks at things different. I own a business and work full time some where else but my goals have changed so much in the last year or two. I went from being a person who wanted to own so much property to a person who want to pay off one home (Which is almost done) and invest in other investment that may get me greater returns.  If I see a property for a good price would I buy it? I wouldn’t even dare. Why? Unless it provides me with a positive cash flow im not going to use  my money just to have another home.

I absolutely LOVE how when houses don't keep selling for all time high's and people sit and wonder how and why it is possible, Then they start blaming anything from the stock market to poor confidence because of the "GFC" to the easter bunny or the falling of gaddafi regime… or maybe its just the cold weather ???

Never do they turn to the biggest factor in any purchasable commodity = price

Hell, they can't even spruik the market up enough to sell the houses on the block anymore ! 

Some person above mentioned something about… "where do the people move too" , "insert propaganda about housing shortage here"

We currently have a historic low number of people per dwelling in Australia, Remember we don't actually need a 250sqm house for every 0.5 population

That means as people figure out that housing in a rip off right now, They will move in with other people and supply's will continue to increase

So, a reduced household size continues to contribute to constrained supply in Australia. I can easily count on the fingers of one hand, the number of people I know who still live with parents. The vast majority of the folk I know generally fall into these main groups:

1. People who rent either by themselves or with others, have been happily doing so for some time and not looking to buy, not even in the near future.
2. People who used to rent but have recently bought (or are going to buy) their own home and moved into it. Some of them did so shortly before or after forming a 'household unit', that is, getting married or getting children.
3. Those who currently live in their own home either singly, have a family or live with a long-term partner.

And I can't even think of anybody I know who used to rent and has now moved back with their parents. I only know of TWO single people who are currently paying off their own homes and chose to move back with parents for a combination of reasons: to enjoy the comforts that parents can offer, to pay off their home quicker or to reduce their loan to a more manageable amount before they move out. The gist of it is that you generally have plenty of people leaving their parents and settling down elsewhere.

Young people fly the nest and leave their parents for a myriad of reasons. As far as I can see, Western culture differs a lot from that of most Asians. Young Australians are, for whatever reason it may be, seemingly very keen to get away from their 'old folks', whereas in a lot of countries in Asia, living at home for an extended period (and only moving out after marriage) is an accepted norm. My point is that it's going to take a lot for people here to start moving back with their folks, in order to result in the overall increase of household size and increased supply that you believe would eventually exist.