Mother of all property booms is here

[essence]

Boom is officially here. Auction clearance rate of 60% or more officially means property boom. Congratulations!

http://www.smh.com.au/news/national/buyers-rally-as-rates-drop/2008/10/18/1223750399532.html

"Figures from Australian Property Monitors show a spike in the auction clearance rate. It hit 60.1 per cent yesterday."

"The clearance rate was 54.3 per cent the previous Saturday. At auctions, in the week ending October 11, only 48 per cent of homes sold, APM figures show. Agents and auctioneers said that along with a recent drop in mortgage interest rates, the Federal Government's financial incentives had increased interest among buyers.

Auctioneer Tom Panos said there was an increase of about 50 per cent in auction attendances he conducted yesterday, especially for lower-priced apartments."

 

[BV]

Essence

That's great news indeed, in fact we had a lot of good news recently and I am not used to it...

cheers

 

[evand]

Where?

The clearance figures ares submitted by the REi's and the agents. So i would believe them about as much as i would believe any other group with a vested interest in seeing a "boom".

Boom is officially here.

All this rescue package will do is make a short term price spike in lower end property and then make it even harder for most non first home buyers to afford a house. Lengthening the property price downturn/stagnation time.

 

[essence]

Where?

The clearance figures ares submitted by the REi's and the agents. So i would believe them about as much as i would believe any other group with a vested interest in seeing a "boom".

Of course. And low clearance rates previously were reported by other groups who had vested interest in showing property slump.

And please, if you say "I think" make an effort to explain the rationale behind your thinking, so everybody can see how ridiculous it is.

RE agents have vested interested in having more listed properties. They make more money from selling more cheap properties than less more expensive ones.

At the beginning of the boom vendors stop listing their houses for sale, and agents suffer a lot from the shortage of properties.

Please think before you post.

 

[AnthonyV]

Property boom is here is it? Well, i thought i would go for a walk around my area and have a look at a few opens. Situated outer East Melb.

Went to 2 in my estate, and both had been dropped $50,000 for this weekends opens, and been on the market for 6 weeks. First real estate agent said demand was great, things are really picking up with the govt initiatives etc...which is why i found it surprising that i was the only one at the auction in the 20 minutes i was there...something doesnt add up.

The second one, well it just turned out i knew the agent...so no crapping on this time. I was the first one there, with only 5 minutes left for the open. He said that the lower end market would do well, but the mid price range anywhere above 400 was struggling, and would continue to do so. So he was not confident at all about a turnaround, thinks it will stay flat for a while yet, demand is still slow.

So dont believe what you hear or read, agents have a vested interest in talking crap. Of course they will get on the news and say how its picked up heaps. Thats what they want you to believe.

 

[evand]

Wow...what's happening to this forum? Where did i say "i think"?

OK, clearance rates are reported by REI's and agents regardless of whether they are low or high. Why would low rates be reported by "other groups"?

I dont think agents benefit from selling more lower priced properties. All they care about is commission, any way they can get it. They just want a sale.

having said that, I'd rather be an agent working in Vaucluse then Bidwill.

And which "groups" would have benefit from showing a property slump?

Of course. And low clearance rates previously were reported by other groups who had vested interest in showing property slump.

And please, if you say "I think" make an effort to explain the rationale behind your thinking, so everybody can see how ridiculous it is.

RE agents have vested interested in having more listed properties. They make more money from selling more cheap properties than less more expensive ones.

At the beginning of the boom vendors stop listing their houses for sale, and agents suffer a lot from the shortage of properties.

Please think before you post.

 

[Raddles]

HI there
there was a news item on the Saturday evening - looking particularly at property in Brisbane area - suggesting that there had not been any particular jump given the Government package. The real estate spokesman made the comment people are not jumping in as they are thinking they may get the property cheaper further down the track.
I note that I sent my eldest daughter to an open for inspection in Brisbane - to a property that would definately have been a first home owners option - and it didn't sound as if there were a vast improvement in the numbers at that inspection.
However, if the property is priced right, there is a lot of interest. I note that we made an offer on a property in Toowong in the last 2 weeks - it required work but there had been 12 inspections on the property in the 2 days since it hit the net and there had been 5 offers on the property at the end of day 2. The successful offer was above the listed price. We didn't make that offer - but will be continuing to look.
thanks

 

[nonrecourse]

Joseph Gobbles; If you lie often enough it becomes the new truth

Boom is officially here. Auction clearance rate of 60% or more officially means property boom. Congratulations!

http://www.smh.com.au/news/national/buyers-rally-as-rates-drop/2008/10/18/1223750399532.html

"Figures from Australian Property Monitors show a spike in the auction clearance rate. It hit 60.1 per cent yesterday."

"The clearance rate was 54.3 per cent the previous Saturday. At auctions, in the week ending October 11, only 48 per cent of homes sold, APM figures show. Agents and auctioneers said that along with a recent drop in mortgage interest rates, the Federal Government's financial incentives had increased interest among buyers.

Auctioneer Tom Panos said there was an increase of about 50 per cent in auction attendances he conducted yesterday, especially for lower-priced apartments."

What a load of B.S. I attend at least 4-5 commercixal & residential auctions in the bayside area every week. The investors all have their hands in their pockets. Is it any wonder why real estate agents in survey's about truthfullness rate somewhat below axe murders

 

[coastymike]

The forum is starting to look like some of those fundamentalist Christian rapture websites. Oh look the signs of the times are here Jesus is coming in the clouds tomorrow. Then next week ohh no the antichrist will surely arrive when Obama gets in.

This site is looking the same. Ohh the boom is here. No the crash is here. Every market and every cycle has the opportunity for growth (financial and personal) and development. I guess the website will soon be somersoft fundies.com

 

[allblack]

Well it's certainly having an effect in the area where I invest on the coast 40km north of Perth. The average first home costs between 350k-400k. I went to the land sales office and they have all but sold out (20 blocks sold this week). Also went to a few open homes in this price range where there were around 5 groups in there at the same time as me. I'm thinking this is going to create a false spike in the market and in the first 6 months of next year may be a good time to sell at least one property. It is scary to think what is going to happen when interest rates rise and unemployment increases. No doubt the government will then spend the remaining 10 biliion in the coffers!!!.

 

[Dis]

I think this encouragement for non home owners to buy their first home is massively irresponsible by the government at this time of the cycle. Its like the cheese in a massive mouse trap and the little mice are starting to bite...

 

[GIDDO]

Well it's certainly having an effect in the area where I invest on the coast 40km north of Perth. The average first home costs between 350k-400k. I went to the land sales office and they have all but sold out (20 blocks sold this week). Also went to a few open homes in this price range where there were around 5 groups in there at the same time as me. I'm thinking this is going to create a false spike in the market and in the first 6 months of next year may be a good time to sell at least one property. It is scary to think what is going to happen when interest rates rise and unemployment increases. No doubt the government will then spend the remaining 10 biliion in the coffers!!!.

Interesting comment about a false spike ALL BLACK.
I am starting to think it will be a good time to rationalise and get equity out before next winter. Probably before March.
On the other hand it is now costing me nothing to hold everything and i could fix rates when they get a bit lower.
Interesting times.

I too would be real scared if property prices rise now, the Govt spends all its money, then interest rates start to rise again, alongside unemployment and poor consumer sentiment.

Interesting times. Who knows what to think.

The so called best financial minds in the world have got it seriously wrong so what chance have I got?

 

[ArJay]

I think this encouragement for non home owners to buy their first home is massively irresponsible by the government at this time of the cycle. Its like the cheese in a massive mouse trap and the little mice are starting to bite...

Agree 100%...this will end in tears IMO...
Not to be a downer, but see how our FHB get on with neg equity and high unemployment in a couple years...

R

 

[Rockstar]

Buying is a trap. Renting is a trap. Booms are a trap. Busts are a trap.

LIFE IS A TRAP

Let me out of here...............


Seriously now, I have had difficulty getting through to my project home sales consultant who I am using for my next duplex. He finally got back to me and apologised. His excuse - FHOG. I will keep tabs on how many of them are signing up for new homes.

I personally don't think that the grant by itself will create any boom. But if it is coupled with another 1 or 2% rate cut then investors will be looking very favourably at property. The attractive yields will be very hard to ignore.

In my area, property has definitely fallen in value by up to 5% or so. Therefore we need a certain amount of growth to get back to where it was 6 - 8 mths ago.

 

[willair]

Boom is officially here. Auction clearance rate of 60% or more officially means property boom. Congratulations!

http://www.smh.com.au/news/national/buyers-rally-as-rates-drop/2008/10/18/1223750399532.html

"Figures from Australian Property Monitors show a spike in the auction clearance rate. It hit 60.1 per cent yesterday."

"The clearance rate was 54.3 per cent the previous Saturday. At auctions, in the week ending October 11, only 48 per cent of homes sold, APM figures show. Agents and auctioneers said that along with a recent drop in mortgage interest rates, the Federal Government's financial incentives had increased interest among buyers.

Auctioneer Tom Panos said there was an increase of about 50 per cent in auction attendances he conducted yesterday, especially for lower-priced apartments."

Not again that's the problem with the media,the more you read the more vulnerable you become to feed bull----,no different to superstitions-tarot card reading-astrology-i think you need more evidence that just one weekend in one market to start to say the boom is back in top gear and property is going up 10 k a month,before it becomes fact in black and white and all starts to become repeatable again like a few years back..willair..

 

[joeExpat]

Boom is officially here. Auction clearance rate of 60% or more officially means property boom. Congratulations!

Dead cat bounce, the slump has only just started. The best thing first home buyers can do is just wait.

 

[Kennethkohsg]

I think this encouragement for non home owners to buy their first home is massively irresponsible by the government at this time of the cycle. Its like the cheese in a massive mouse trap and the little mice are starting to bite...

******************
Dear DIS,

1. I believe that Australians will have to learn to take responsibility for themselves and on their own house purchase decision-making, if they have not been previously doing so;- by buying their first homes only when they can well afford to.

2. The KR's ALP Federal Govt has a job to do i.e to try to avert the present rapidly slowing down Australian Economy for falling into an impending official Recession soon midst the present unfoldiong of the global financial crisis.

3. I believe that the KR's ALP Federal Govt is now trying to stimulate and re-engineer a further expansion in the Australian Economy by encouraging local consumers' spending and housing industries as well as by
fast-forwarding the commencement of the various infrastructural development projects under the A$20 Billion Future Fund.

4. The Australian peoples have voted in KR's ALP Federal Govt and this is the decision that the KR's ALP has taken, to prevent Australia
from falling into an impending official Recession soon which it has found to be non-viable for itself.

5. For good or for bad, it is to be seen in due course.

6. This is irrespective of whether you or/and I personally agree with the new direction or/and policy taken by the KR's ALP Federal Govt.

7. Similarly, whether the KR's ALP Federal Government has done a good job or not, it is then for the Australian peoples to subsequently decide if they would still want the KR's ALP to continue to govern Australia for a further one more office term or not.

8. For your further comments and discussion, please.

9. Thank you.

Cheers,
Kenneth KOH

 

[Kennethkohsg]

Where?

The clearance figures ares submitted by the REi's and the agents. So i would believe them about as much as i would believe any other group with a vested interest in seeing a "boom".

All this rescue package will do is make a short term price spike in lower end property and then make it even harder for most non first home buyers to afford a house. Lengthening the property price downturn/stagnation time.

******************
Dear Evand,

1. This is only your own personal perception and assessment.

2. Let us wait patiently and see how the various housing markets will eventually evolve, in due coure, please.

3. At the basic mininum, this recent increase in the FOHG will provide the required ground support for the various housing markets.

4. This is especially so when the First Home Starts Shared Equity Scheme in WA, has further reduced the ceiling price for the approved house purchases within the Perth Metropolitan Region, from its previous A$375,000 down to the present A$355,000.

5. It is also likely where the first home buyer market segment is further being re-vitalised, the middle-priced and high-end priced market segment will and may continue to remain stagnant or/and experience a lesser/lower price fall at their present respective levels over time, before the next real housing boom kick-in officially in Australia, once again.

6. For your further comments and discussion, please.

7. thank you.

cheers,
Kenneth KOH