I've had an unproductive experience recently re an Inner West house which I was considering as a home purchase, rather than an investment. I wanted to see what others searching in the area were finding in terms of vendor expectations vs current market..
The home has been marketed for 6 weeks, initially with a guide of $1.15m, and has since had an aborted auction (one presumes through basic lack of interest - the property is attractive and well laid out, but on a street adjacent to, but not in, the main "hot spot"). It's now re-advertised at $1.25m, and the REA is adamant it will only be sold at that level...which strikes me as an odd expectation to maintain, given anyone can see the marketing campaign history. Given what the vendors paid in '07, plus allowing generously for their reno work, $1.25m gives them an av annual capital growth of 12%!!
I have attended several auctions in this area and have seen little appetite between $1m and $1.5m, with vendor bids being used and a couple of 'good' properties passed in. Most of the action is sub $1m, but also >$1.5m - $2m seems healthy.
So I guess my question is whether others are finding things cooling down in this price bracket in Sydney's Inner West? It seems from what I've seen around here that vendors' expectations aren't being met, but then they won't cut a deal for less....is that the fault of over-eager REAs, or unrealistic vendors??
Frustrating, but will just have to do what the other buyers apparently are doing and sit on my hands for a while. Perhaps a slow Spring will realign things!
The home has been marketed for 6 weeks, initially with a guide of $1.15m, and has since had an aborted auction (one presumes through basic lack of interest - the property is attractive and well laid out, but on a street adjacent to, but not in, the main "hot spot"). It's now re-advertised at $1.25m, and the REA is adamant it will only be sold at that level...which strikes me as an odd expectation to maintain, given anyone can see the marketing campaign history. Given what the vendors paid in '07, plus allowing generously for their reno work, $1.25m gives them an av annual capital growth of 12%!!
I have attended several auctions in this area and have seen little appetite between $1m and $1.5m, with vendor bids being used and a couple of 'good' properties passed in. Most of the action is sub $1m, but also >$1.5m - $2m seems healthy.
So I guess my question is whether others are finding things cooling down in this price bracket in Sydney's Inner West? It seems from what I've seen around here that vendors' expectations aren't being met, but then they won't cut a deal for less....is that the fault of over-eager REAs, or unrealistic vendors??
Frustrating, but will just have to do what the other buyers apparently are doing and sit on my hands for a while. Perhaps a slow Spring will realign things!
