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when will property prices fall?
I wunder when property prices will fall down under?
this cannot go on for ever:) |
when will property prices fall?
Too True.
In Brisbane they have already started to fall. The REIQ won't admit it yet for a while; but there are five properties 'For Sale' within 200 m of our home. They've all been on sale since before Christmas (Yes! December 25th, 2003!!). The market is collapsing, tho' it could be 2 or 3 months before Real Estate Agents acknowledge the fact!!! "maxi" wrote in message ... I wunder when property prices will fall down under? this cannot go on for ever:) |
when will property prices fall?
I had that discussion with a few Aussies (in different regions of the
country) in 2000 - and again in 2001. Things have gone up a little since then (and, do I remember correctly, the first time buyer's rebate is now history?) We (Canada) are in the midst of a huge surge as well - driven almost entirely by the cheapest money in living memory and a highly competitive mortgage market. Australia, OTOH, has some of the highest rates in the industrialized world (which is part of what is driving up the Australian dollar), although in real terms (interest less inflation) the numbers aren't as dramatic. If Aussie rates fall, money will become cheaper; in turn, that means that buyers can afford a larger mortgage with the same payment; which in turn drives up property prices. That said, I agree entirely that the go-go-show can't go on forever (ask the litany of developers who have crashed on the rocks of economic history)...but if you could predict WHEN, go to work for the RBA. They'll have a corner office and a very nice salary for you, since they (and most other countries' centralized banks) pay a lot of blokes to throw darts at boards. in article , A Mate at wrote on 3/27/04 5:18 AM: Too True. In Brisbane they have already started to fall. The REIQ won't admit it yet for a while; but there are five properties 'For Sale' within 200 m of our home. They've all been on sale since before Christmas (Yes! December 25th, 2003!!). The market is collapsing, tho' it could be 2 or 3 months before Real Estate Agents acknowledge the fact!!! "maxi" wrote in message ... I wunder when property prices will fall down under? this cannot go on for ever:) |
when will property prices fall?
Raffi Balmanoukian
a wrote: I had that discussion with a few Aussies (in different regions of the country) in 2000 - and again in 2001. Things have gone up a little since then (and, do I remember correctly, the first time buyer's rebate is now history?) No it is still operating. I am on the Gold Coast and the market is softening here too, though no real estate people will openly acknowledge it. What happens in the Sydney market is reflected here eventually, how long it takes to percolate to this market is anyones guess. Home sellers count high cost of greed By Daniel Dasey March 28, 2004 Home sellers who turned down hefty auction bids for their properties last year in the hope of snaring a higher price have been stung for tens of thousands of dollars by the slowing property market. Research shows sellers who were unsuccessful in auctioning their homes last year are being forced to accept up to 25 per cent less than the highest bid made for their properties before they were passed in. Analysts expect the weaker market, which is allowing buyers in some areas to take their pick of heavily discounted homes, to continue for up to two years. "There's no doubt the instances of this occurring have increased," said Louis Christopher of housing market research company Australian Property Monitors. "Demand for housing has dramatically fallen away in 2004. Sellers are left with a hot potato," he said. The trend towards lower prices this year is also affecting private treaty sales. The Sun-Herald asked Australian Property Monitors to examine a cross- section of homes that were passed in at auction last year and later sold for less than the highest bid. Vendors in suburbs ranging from Woollahra to Merrylands lost tens of thousands and even hundreds of thousands of dollars by holding out for more money, only to have the market slip away from them as interest rates crept up. The research shows a Bronte home that attracted a top bid of $1.65 million in August was sold last month for $1.255 million - a reduction of $395,000. An Ashfield house for which the owners refused a $701,000 bid in November was sold this month for $630,000. In Cabramatta, a home that was passed in for $470,000 in December has just been sold for $429,000. The story is the same for private treaty sales. At Castle Hill, a home advertised for $679,000 in October sold in January for $630,000. Another Castle Hill house was advertised in October for $919,000 before selling for $800,000, after being passed in at auction. At Pennant Hills, a home advertised for $780,000 in November was discounted to $750,000 in December and to $719,000 in February. It is now being advertised for $699,000. Mr Christopher said he believed prices across Sydney were on average 8 to 10 per cent lower than last year and some vendors had been caught by the weaker market. "I have no doubt there are many sellers who weren't prepared to take the bid at the time thinking it was too low and are probably now wishing they had done so," he said. "The bottom line is the market is weaker now than the end of last year." Ray White Real Estate director Sam White said while some areas had made gains, he estimated prices overall in Sydney had slipped between 5 and 10 per cent. "We're finding it more difficult to sell properties now than six months ago," he said. Mr White said he believed the real estate climate had returned to normal. "For the first time in four or five years, vendors and buyers are pretty much in equal numbers [and] you need to work hard to get a sale." He said he expected to see more robust conditions by 2006. Macquarie Bank head of property research Rod Cornish said he expected more volatility in the housing market in the coming months. "I don't think there's going to be a massive, across-the-board house price slump, but certainly it's a softer market than it was," he said. This story was found at: http://www.smh.com.au/articles/2004/...330994118.html Cheerz Mark. |
when will property prices fall?
"maxi" wrote in message
... I wunder when property prices will fall down under? this cannot go on for ever:) The property value cycle is on the way down and there will a lot of bargains to be had in the next few years as our socially responsible (sic) banks sell up the owners to recover their funds. The banks will do what they did in the 80s and increase housing rates to their other customers to cover the losses they incur on their dodgy housing loans. The increases force others into insolvency and the cycle keeps on going. I remember paying 17% on a mortgage - god help me. The other side of the coin is that shares start to look more attractive and the superannuation investments will start to rise and claw back the capital losses caused by the housing boom - until housing gets attractive again and the cycle goes around. Long term its in the government's interests to have high value for superannuation so reducing the amount of reliance on state old age pensions (house values being exempt from means testing for pensions). The other plus side for renters is that houses are now cheaper than 6 years ago and often with a/c, pools, etc. Friends are renting a 4 bedroom house with a pool for $210 a week, I was paying $265 in 1997 for a crappy 3 bedroom. end rant. -- www.bribieisland4x4hire.com VW Kombi Camper Buy Backs Landcruiser Troopy - Toyota Hilux Crew Cab Mitsubishi Pajero - Landrover V8 Swag Camper |
when will property prices fall?
"Roger Martin" wrote in message ... "maxi" wrote in message ... Friends are renting a 4 bedroom house with a pool for $210 a week, I was paying $265 in 1997 for a crappy 3 bedroom. where and how far from the beach are these rental rates possible? |
when will property prices fall?
Which Beach????
With apologies to CBA!! "4000 psi" wrote in message news:r%o9c.6081$GH3.5362@fed1read07... "Roger Martin" wrote in message ... "maxi" wrote in message ... Friends are renting a 4 bedroom house with a pool for $210 a week, I was paying $265 in 1997 for a crappy 3 bedroom. where and how far from the beach are these rental rates possible? |
when will property prices fall?
"4000 psi" wrote in message
news:r%o9c.6081$GH3.5362@fed1read07... "Roger Martin" wrote in message ... "maxi" wrote in message ... Friends are renting a 4 bedroom house with a pool for $210 a week, I was paying $265 in 1997 for a crappy 3 bedroom. where and how far from the beach are these rental rates possible? Well Bribie Island is about 5 kms wide at the Southern end where the housing is - so its not far. The one I used to rent is at Woorim - that was about 100 metres to the beach - 50 metres of which is a park. The house my friends rent is probably about 2 kms to the nearest beach. Its brand new - they are the first tenants. The owners work on the coalfields near Rockhampton and have built the house as an investment plus intend to retire here. There are more Real Estate Agents on the Island than there are any other service - most have websites which can list rentals. Email me direct if you want anything like a local paper mailed or scanned. regards |
when will property prices fall?
"Roger Martin" wrote in message ... "4000 psi" wrote in message news:r%o9c.6081$GH3.5362@fed1read07... "Roger Martin" wrote in message ... "maxi" wrote in message ... Friends are renting a 4 bedroom house with a pool for $210 a week, I was paying $265 in 1997 for a crappy 3 bedroom. where and how far from the beach are these rental rates possible? Well Bribie Island is about 5 kms wide at the Southern end where the housing is - so its not far. The one I used to rent is at Woorim - that was about 100 metres to the beach - 50 metres of which is a park. The house my friends rent is probably about 2 kms to the nearest beach. Its brand new - they are the first tenants. The owners work on the coalfields near Rockhampton and have built the house as an investment plus intend to retire here. There are more Real Estate Agents on the Island than there are any other service - most have websites which can list rentals. Email me direct if you want anything like a local paper mailed or scanned. regards the rent your friends are paying is really good for being on Bribie, i guess, ... is the surfing any good in those parts, do you know? |
when will property prices fall?
I just had a look through the local newspaper and the rent is about right
with others, there is definitely an oversupply at present - both rentals and for sales. There are so many empty housing blocks as well, with developers asking stupid prices - more than existing houses in many instances. The surf at the Southern end of the island is a bit small - there are sand bars in Moreton Bay which protect us from the big ocean swells. But a 20 minute drive up the beach to the Northern end gets you into the big swells - especially at high tides. The remnants of the last cyclone that hit the North Coast whipped up some big swells and we had a ball for about a week - I like being able to walk about 100 metres to surf some big waves. -- www.bribieisland4x4hire.com VW Kombi Camper Buy Backs Landcruiser Troopy - Toyota Hilux Crew Cab Mitsubishi Pajero - Landrover V8 Swag Camper |
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