Is this a sign of a cooling market or a great buy?

okay, who paid too much and who got a great deal?

this house was bought for $1.503M in March 2010 at an auction, http://www.realestate.com.au/property-house-nsw-malabar-106360619

the house right next door sold for $1.305M on the weekend July 2010 at an auction, http://www.realestate.com.au/property-house-nsw-malabar-106603610

has anybody else got similar examples...i would really have liked to be the person who paid 1.3m if really the house is worth 1.5m, or the market demands . thats a quick 200k profit.
 
good find! if it was really worth 1.5m it would have sold for that much? 1.5m might be overpriced now, but it was 'market rate' back when it sold - so it depends when you ask the question and what hindsight you have.
 
good find! if it was really worth 1.5m it would have sold for that much? 1.5m might be overpriced now, but it was 'market rate' back when it sold - so it depends when you ask the question and what hindsight you have.

hmm yes, a correction of 13% in 3 months is hard to fathom. but what happened to those bidders that pushed the price to that much, where did they all go.

i am just trying to find the best time to buy, and i am thinking if there are more examples of this, it could be a good time to buy again, soon. ;)
 
Hi, I'm sorry to use a word like idiotic in 2 days but it irks me to see words like 'corrections' bandied around with no reasonable basis.

These are TWO different properties with different qualities.

A difference of 200 thousand for a 1.3M property is a natural divergence between 2 different properties.

This present one selling for 1.3M requires money to complete the extension.

Wherefore then is the 'correction'?

How idiotic can one be?

KY
 
these 3 houses were IDENTICAL. I tried to buy the cheap one, a savy REA swooped on it tho

# 12 28/12/07 1,570,000
# 14 25/04/09 1,020,000
# 16 05/01/08 1,640,000
 
IMO , such a small difference means nothing accept that one seller is a lot greedier and maybe more unrealistic than the other, or one really wants to sell but the other can afford to wait and take his chances .
For that price range it's only equivalent to a 20k difference in 200k properties , nothin !
It's very common right through any price range . If we see lots of them being reduced by 20-30% that's a different story. Also very common as in my area by 1/3 through 09 - then the stimulus came in and it all went back to where it was.

Cheers
 
Without having seen the houses in person, I still think the price differential between those two houses is justified.

The $1.5m one has a side driveway leading to the back which makes extensions easier and cheaper.

The 'cheaper' $1.3m one has offstreet parking directly in front of the house only. Where are you going to park that boat/caravan? It's also a slightly narrower block and has some privacy issues with the neighbour's 2 storey extension.
 
Without having seen the houses in person, I still think the price differential between those two houses is justified.

The $1.5m one has a side driveway leading to the back which makes extensions easier and cheaper.

The 'cheaper' $1.3m one has offstreet parking directly in front of the house only. Where are you going to park that boat/caravan? It's also a slightly narrower block and has some privacy issues with the neighbour's 2 storey extension.

Good points garbage, those things would make a hell of a difference. I must take a look next time , just to be sure b/4 opening the trap hey.
 
Hi, I'm sorry to use a word like idiotic in 2 days but it irks me to see words like 'corrections' bandied around with no reasonable basis.

These are TWO different properties with different qualities.

A difference of 200 thousand for a 1.3M property is a natural divergence between 2 different properties.

This present one selling for 1.3M requires money to complete the extension.

Wherefore then is the 'correction'?

How idiotic can one be?

KY


reasonable basis.!!!

1. similar land and property types (weatherboard)
2. the cheaper property is greater in land size,
3. right next to each other, its not like they are down the street.
4. we are talking location here, the actual house is worthless to be honest in an area like that where you wouldnt extend, you would knock down and rebuild.
 
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IMO , such a small difference means nothing accept that one seller is a lot greedier and maybe more unrealistic than the other, or one really wants to sell but the other can afford to wait and take his chances .
For that price range it's only equivalent to a 20k difference in 200k properties , nothin !
It's very common right through any price range . If we see lots of them being reduced by 20-30% that's a different story. Also very common as in my area by 1/3 through 09 - then the stimulus came in and it all went back to where it was.

Cheers

both were sold at auctions, greed doesnt come into it. the market placed the price on these houses. which is why i am debating what has happened in 3 months, even through we have not seen an increase in interest rates or any significant event to cause this.
 
The chances are nothing happened in that period.

The difference could have been 1 or 2 bidding at one that needs to sell v a few in a bidding war on the other that can hold.

The short time difference could account for a different no. of buyers out and about with finance approval or cash wanting to buy in the area. Then things change to what they were 2 mths earlier.

Luck in getting the buyers wanting what one house has to offer v the other even though they are both nice houses.

A good realestate agent v a mediocre one.

I'm sure there's more.

I think all those things can account for that difference in price.

Many more sales would confirm differently.
 
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