Property auctions - People to strike against them.

T

The_Bludger

Not sure if this has been posted anywhere else here, but this article talks about an idea that is gaining momentum amongst frustrated "wanna be" home buyers. Basically, these frustrated buyers will go on strike while attending auctions refusing to bid, regardless of price. The idea is that if no one bids at an auction and houses don't sell, prices will drop drastically then allowing people to buy at "reasonable" prices, whatever they are. Apparently, Oz house prices are 56% over valued.

Stoopid idea in my opinion. While there is demand, prices will not fall drastically, unless you live in South Yarra where the medium house prices have dropped 28%(Where are you deltaberry?). What are your thoughts?

Full article here if you're interested: http://www.theage.com.au/business/online-campaign-targets-high-cost-of-housing-20110330-1cfeq.html
 
Already been discussed for a few days in another thread, but it's starting to get a lot of press. Utterly stupid, house prices aren't going to fall 50% but these people can dream.

Next week I'm sure the press will be excited about why belly button lint has suddenly turned pink.
 
The idea is actually pretty funny. Here in Perth, by far the majority of properties are sold via a negotiated settlement between the vendor and the purchaser. Auctions do happen, but they're a niche market by comparison.
 
Dont bet on it. When buyer sentiment is low and getting worse, listing numbers are getting higher, it wouldnt take much to push it over the edge.

But 50% fall is not going to happen.

i wouldnt be surprised to see 30% fall over the next say 2-5 years. Ex inflation.

zed_kid said:
Hmmm interesting... do you have a link to this?

And yes a buyers strike on an inelastic commodity is retarded
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The_Bludger said:
While there is demand, prices will not fall drastically, unless you live in South Yarra where the medium house prices have dropped 28%..... What are your thoughts?
Click to expand...

Firstly, median house prices in South Yarra have not fallen 28%. There is not enough sales data to be statistically reliable at this stage. In the Stonnington LGA house prices, according to RP Data have actually increased by 0.5%.

This brings me to say something about median sales price data (again) :).
This data is only tracking the mid-point (median) of sales. It is not tracking the mid-point of house values in the suburb.

For example, if there was lots of FHB activity, then the median sale price would likely be reported as falling, since FHB's typically buy lower priced properties. Does this mean that the expensive houses in the suburb have fallen in value? Does it mean that the medium (average) priced homes have fallen in price? Absolutely not!

This I see as the inherent danger of tracking month to month median sales figures. It is perfectly OK where there are sales across all price ranges in a suburb and where volumes are decent enough to be statistically reliable BUT on low volume or where markets are being skewed by either FHB or investor activity, or for that matter where luxury homes (such as holiday homes at the beach) are being purchased, then traking the median sales price data is fraught with potential errors in interpretation IMO.
 
evand said:
Dont bet on it. When buyer sentiment is low and getting worse, listing numbers are getting higher, it wouldnt take much to push it over the edge.
Click to expand...

In 2010 in Australia, almost 500,000 property sales were made to individuals and families. This Prosper Australia group has about 5,000 votes (where you are apparently allowed to vote up to 3 times on the one Q, but let's be generous and say that it is a genuine 5,000 individuals expressing a view) advocating this action be taken.

Do you honestly think that 1% (some or most of whom would not be in a position to buy property anyway) will have any effect on the market?:rolleyes:

I think David Collyer and his supporter Steve Keen, are doing people who take their advice a great disservice.
 
Mate, its pretty new. It only hit the mainstream press yesterday. Give it a chance.

How do you know what it could turn into? As i stated in another thread about this, it could get traction. Who knows?

Propertunity said:
In 2010 in Australia, almost 500,000 property sales were made to individuals and families. This Prosper Australia group has about 5,000 votes (where you are apparently allowed to vote up to 3 times on the one Q, but let's be generous and say that it is a genuine 5,000 individuals expressing a view) advocating this action be taken.

Do you honestly think that 1% (some or most of whom would not be in a position to buy property anyway) will have any effect on the market?:rolleyes:

I think David Collyer and his supporter Steve Keen, are doing people who take their advice a great disservice.
Click to expand...
 
The_Bludger said:
Stoopid idea in my opinion. While there is demand, prices will not fall drastically, unless you live in South Yarra where the medium house prices have dropped 28%(Where are you deltaberry?). What are your thoughts?

Full article here if you're interested: http://www.theage.com.au/business/online-campaign-targets-high-cost-of-housing-20110330-1cfeq.html
Click to expand...

Yeah when the prices drop I'm going over to Sth Yarra and going to pick me up one of the 3 story Victorian mansions on a 1000 sqm. for 600k 'cause that's what the "fair" value is
 
pieman said:
Yeah when the prices drop I'm going over to Sth Yarra and going to pick me up one of the 3 story Victorian mansions on a 1000 sqm. for 600k 'cause that's what the "fair" value is
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I’ll back that. I’m going to pledge my vote as well, I also want more for less, I’m a white Australian and I deserve a South Yarra pad
 
I expect it will backfire on them. The campaign is pointless - most FHB's will continue buy a home when they can, as always. But the property analysts and economists will still some out in force to 'counter' this campaign and explain the facts about the property market. The campaign organisers are simply giving the property industry yet another opportunity to explain why it really is different here, and why prices are not going to crash.
 
zed_kid said:
I’ll back that. I’m going to pledge my vote as well, I also want more for less, I’m a white Australian and I deserve a South Yarra pad
Click to expand...

It doesn't matter you are white, black or yellow. If you work hard for it, then you deserve a good suburb. Nothing in this world come easy if you don't work toward to it.
 
evand said:
Dont bet on it. When buyer sentiment is low and getting worse, listing numbers are getting higher, it wouldnt take much to push it over the edge.

But 50% fall is not going to happen.

i wouldnt be surprised to see 30% fall over the next say 2-5 years. Ex inflation.
Click to expand...

Say it does drop 30% in 2-5 years, will the GetUp! crew then pounce on all the fair value property? Or will they hold out longer in a hope for a further reduction? How will they be able to pick the exact fair value entry point?

I can see a new GetUp! campaign ‘prices dropped 30% thanks to us but lets ride this wave a little longer and see if we can drop it by 50%!’ Greed goes both ways. Wanting more for less is also greedy.
 
Just from an agents point of view, it's as quiet as I have seen it since the mid 90's. We are seeing a slight drop in prices in some areas but nothing of real note. Our concern is the turn over of stock, it is extremely slow in most areas of Birsbane. Which will cause prices to drop further as more competition on the market.

Can't see a 50% drop in prices, when has that happened in Austrailia's history? :)
 
dammit!

who keep stealing my popcorn.....Dazz, i'm looking in your corner.

i gotta try plain now, the amount of butter i've consumed in the past few weeks has left me with a 6.0 cholesterol level.
 
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