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.