I attended three auctions last Saturday.
One at Five Dock, one at Canada Bay (near Five Dock) and one at Drummoyne.
All three properties were in immaculate condition but, whilst there were a number of people in attendance, the bidders were few and far between.
So clearly people are still sitting on their hands.
I am amazed. The vendor is a developer who is under some pressure to sell yet not even one half decent offer was made enabling him to accept it.
Anyone of these properties is a bargain ready to be picked up by someone looking for a Sydney property for themselves.
100% vendor finance being offered and yet no reasonable buyer in sight. So what is wrong with this market ?
Pisces
I think timing is very important. May be at this point in time, there are no buyer who looking for this kind of property. If there is may be those still think it’s over price by not looking close enough. or may be they think and worrying when is going to be the next interest rate rise.
Sometime in the hot market, there are property for sale with no buying,,,,again timing….
just a thought.
Warm Regards
ChanDollars
[Keep going, you’re on your way to financial freedom]Hi Pieces
i was talking to agents in victorian regional cities where i own and demand is still strong and prices have even gone up a little in the past 2 months i’ve been out of the country (No there is no relationship between me moving away and prices rising) [
].so even if the major markets in Australia (capital cities) are struggling as we have said there are many markets not one property market.
what are others seeing
regards westanI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Yes, it would be very interesting to see what others’ impression is.
Pisces
I have been very interested in the market in the immediate area where we live in Sydney. Over the past 12 months there has been maybe 20 houses for sale. up to 4 months ago, they were literally selling on the first open weekend (4 or 5 did that). Some took a couple of weeks to sell, one took 4 months (owner wanted stupid money for it – and got it eventually) and there were a few that knowcked houses down, built huge mansions and resold for a couple of hundred thou profit.
In the last 4 months though, 4 houses here have been put up for sale with only one being sold so far. The prices have not been unreasonable considering what others have sold for, but I guess people are not as excited about buying at the moment.
I think in this suburb in Sydney, the market is slowing. Not dead, but slowing.
‘Eat rich food, barbeque a yuppie’
In Melbourne, it is fair to say the new auction rules (volunatrily implemented by most agents from last year), but into force from Feb 1, in conjunction with two interest rate rises has ‘spooked’ a lot of people.
However, in the areas that I had been looking, the effect is that is now takes a little more time to sell, to get the price you are looking for. I haven’t seen any great decreases for comparable properties.
James
I think auctions have been a recent thing in terms of popularity. 15-20-odd years ago, they weren´t particularly used. I think the new regulations will put them back in the closet for a while, and private treaty sales will pick up the pace. I was alwazs under the impression that auctions were more for boom times where the market was rising, or for unusual houses where there was no real market indication based upon previous sales etc.
As far as prices go… people have been saying vendors need to be more ´realistic´when selling our houses… but really, are we gonna chop 20% off curent prices? I think we´d rather chop our limbs off.
I think a lot of people will still be selling up to get capital gains. But the 1% increase in IR´s did the job in slowing us down buying (or at least mum and dad investors). Seems that will lead to more supply than demand, and that´s a good thing for buyers, right?
kay henry
i’m in canberra, and the market has slowed down alot.. people are still refusing to lower prices or even look at the offer, and some of these have been on the market 6 – 8 months. it doesnt help that rents havent increased yet here, so i am waiting and biding my time.. as westan say’s, timing is everything. at present i am getting ready to strike. ie pre approvals etc for when the time is right. its just not yet.
Lead, Follow or get out of the bloody way
so do we think the market will soften more?
ive been looking around surry hills and my observations is that the market in the area is still strong.
seeing more private sales (ie, no agent) these days though these houses seem to be the most unrealistically priced.
julie
so do we think the market will soften more?I think if the reserve bank raises the rates tommorrow
it will be a different ball game out thereThere were 7 blocks of land at the end of our street that went up for auction on the weekend. We are in Sydney, and our suburb doesn’t often have any land for sale, so this was quite unique. The land has been getting cleared, roads built etc. for the past year. This time last year the RE’s were telling people that they would probably go for around $800,000 each, and there seemed to be quite a bit of interest, however a couple of months ago, when everything was finally finished, they were having trouble finding people interested.
One block sold prior to auction for $650,000. There were only 2 bids at the auction, both for $650,000, so all 6 remaining were passed in.
Me thinks things have slowed a bit in our area.
Cheers,
Karen[]Pisces, are these units or townhouses that are for sale? How much was the developer asking for? Drummoyne & Five Dock are fairly expensive areas.
I would say most people are waiting to see if there is going to be another interest rate rise…
Regards,
It doesn’t make much sense to me that people are sitting on their hands.
In those cases where the vendor is anxious it will however create an opportunity to pick up a bargain.
Pisces
All four properties that went to auction on Saturday in paddington were passed in.
Spider
Originally posted by Scully:There were 7 blocks of land at the end of our street that went up for auction on the weekend. We are in Sydney, and our suburb doesn’t often have any land for sale, so this was quite unique. The land has been getting cleared, roads built etc. for the past year. This time last year the RE’s were telling people that they would probably go for around $800,000 each, and there seemed to be quite a bit of interest, however a couple of months ago, when everything was finally finished, they were having trouble finding people interested.
One block sold prior to auction for $650,000. There were only 2 bids at the auction, both for $650,000, so all 6 remaining were passed in.
Me thinks things have slowed a bit in our area.
Cheers,
Karen[]Karen, are these the blocks in Turramurra. I know of them. They were on with Century 21 I believe.
‘Eat rich food, barbeque a yuppie’
Rugbyfan,
Yep, they’re the ones. That’s our street. Damn shame too. Used to be lovely bush there, but, can’t stand in the way of development, I suppose.
Cheers,
Karen[]What street was it again, Scully?
I had one of the Century 21 agents do a hard sell on them to me about 3 weeks ago. Maybe at $600,000 they are good buying. I think they were all 1/4 acre or bigger.
‘Eat rich food, barbeque a yuppie’
Rugbyfan,
They’re in Forwood Avenue. All big blocks. Smallest is still over 900sqm. None of them are real flat, and a couple are pretty odd shapes (a creek runs straight through one of them).
I can tell you, if I was the owner I wouldn’t be all that impressed with the work done by the agent. Pretty poor auction all round really.
Cheers,
Karen[]
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