I had a realtor call me yesterday to tell me they had not had any offers on the property and would I please put in an offer at 20 percent below the asking price. This was followed two hours later by a call from another realtor about a house I viewed four months ago saying it was still for sale, they were dropping the price by 160k and would I be interested.
I have seen a house sell for (slightly) less than it sold for in 2004. That even surprised me in my current bear like state. Perhaps they horribly overpaid in 2004 - hard for me to judge from this distance. Or maybe it's all rainbows and lollipops after the 50 basis point cut. But I doubt it.
I think it's more a change of mentality. People were previously prepared to stretch themselves on serviceability because prices kept going up and up. Now that nexus has been broken and inflation tamed people are staring down the barrel of what it really means to pay off a 700k PPOR loan in a non inflationary environment instead of just allowing it to inflate away.
I have seen a house sell for (slightly) less than it sold for in 2004. That even surprised me in my current bear like state. Perhaps they horribly overpaid in 2004 - hard for me to judge from this distance. Or maybe it's all rainbows and lollipops after the 50 basis point cut. But I doubt it.
I think it's more a change of mentality. People were previously prepared to stretch themselves on serviceability because prices kept going up and up. Now that nexus has been broken and inflation tamed people are staring down the barrel of what it really means to pay off a 700k PPOR loan in a non inflationary environment instead of just allowing it to inflate away.
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