Melbourne Mini-Boom in Inner Surburbs about to fizzle out???

[jazzlobber]

Comments from director of JasHStephens in yarraville, these are a big RE Agent in the Inner West.

...

However over the last two Saturdays we have also witnessed some buyers going a little 'cold' on certain properties, properties that were flying some 3-4 weeks ago. Is it that buyers are taking a deep breath, before the winter months, or have we reached a flat period after an extremely strong Autumn?

The answer to these questions really is dependant on a property by property analysis, but overall the tide might be slightly turning.

...

 

[aussierogue]

They probaly right

Heading for a flat period is not really a fizzle. Happy for 20-30 pct growth and then a flat period. it cant keep going up at those rates.

I think the sentiment is correct as winter season always a bit cooler. Maybe a chance to buy a bargain.

 

[buzzlightyear]

Heading into winter in Melbourne this pullback in activity is pretty normal. It tends to pick up again in spring (September'ish)

 

[ozi]

I wonder now if his agency, who happen to be one of the best at under quoting in the area, will be more realistic with the prices they quote?

Ozi

 

[suffragette]

just heard during lunch conversation, my boss went to a property seminar recently and was told by the speaker to avoid property for the next 2 years. There will be a crash happening soon, and then it'll be a good time to buy... has anyone heard this? personally i dont believe it.... (this is in melbourne btw)

 

[aussierogue]

interesting

A property seminar where they tell you NOT to invest in property. I hope the the spruckers have a day job.

 

[jazzlobber]

just heard during lunch conversation, my boss went to a property seminar recently and was told by the speaker to avoid property for the next 2 years. There will be a crash happening soon, and then it'll be a good time to buy... has anyone heard this? personally i dont believe it.... (this is in melbourne btw)

Suffragette,

i highly doubt a crash in melbourne in next 2 years,

the fundamentals are just right for early growth phase in the cycle,

stable interest rates
low unemployment
consistent economic growth
reasable inflation figures
net immigration etc
median for melbourne low compared to other capital cities
flat or little growth over the last couple of years (granted inner is going a bit nutty at the moment) - boom before that.

 

[emu]

I think investors are starting to take a breather after an increase of 15% in sought after areas, but i still expect melb's median to increase to 430-450k by this time next year and then i expect sydney to lead the way into uncharted territory

 

[The Y-man]

Heading into winter in Melbourne this pullback in activity is pretty normal. It tends to pick up again in spring (September'ish)

Darn hope so! Especially when I am thinking of putting some inner city units on the market in Spring!!

Cheers,

The Y-man

 

[JIT]

I don't think you will see the same kind of ripple effect in the west as you would in the rest of Melbourne. I think there is a certain attraction to the inner west, eg. Yarraville, Seddon, Kensington, but beyond that I'm not convinced that there is enough demand to cause a strong ripple to the middle or outer western suburbs at this stage of the Melbourne property cycle. In contrast - inner, middle and outer suburbs in the east, south-east, bayside and north - I think will see much better growth in the next few years.

GSJ

 

[jingo]

Comments from director of JasHStephens in yarraville, these are a big RE Agent in the Inner West.

...

However over the last two Saturdays we have also witnessed some buyers going a little 'cold' on certain properties, properties that were flying some 3-4 weeks ago. Is it that buyers are taking a deep breath, before the winter months, or have we reached a flat period after an extremely strong Autumn?

The answer to these questions really is dependant on a property by property analysis, but overall the tide might be slightly turning.

...

Hi Jizzlobber,

I must admit it is unusual for this agency to write anything negative at all about the property market. I receive the local rag and they are alway so upbeat in their outlook.

Anyway, this is not a bad thing for investors - gives us a chance to catch our tails and buy something half decent at a reasonable price!!

Regards Jason.

 

[ILoveProperty]

Call me cynical but if I was looking to buy in the Yarraville area, and if I had just been on the sidelines during the mini-boom Yarraville has experienced in the early part of this year, and had missed out time and time again, then after reading this quote I might think I was in with a chance again.

How much trust can you put in something a major REA says? What's is driving him to say this?