See Change and Richard Feynman . let's hype the sydney market thread .
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Yes - I can almost certainly buy a million house with cash if I sold down most of my properties...
but my point is (modestly) - how many Australians have a large amount of properties to cash out? let alone $300k cash deposit? and even if they did - are they doing it to buy an average home?
I can only assume people who are buying these million dollar homes have access to a lot of old money/inheritance, top 5% income earners/net worth, and the mentally insane who are overextending themselves...
Fair enough but often they're not buying their first house , so they've built up equity over a number of years and properties. With IP's we're often starting from scratch on each different property , effectively borrowing everything including the deposit by drawing down equity on other properties.
Many would also have two incomes .
Cliff
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2 million above reserve
A couple of sales well above reserve
This has to be the highest " above reserve " sale I've seen . There were complained about the millers point ex gov sales being 1 mill above reserve but 2 million ?
And this from Matraville , which is probably the worst suburb on the east of sydney , ex struggle st , lots of industry
Despite the shared driveway, neighbouring industrial area and the front fence slanting like the tower of Pisa, the three-bedroom, double brick Californian bungalow sold $148,000 over reserve for $1,202,000. The difference between winning and losing was a $500 bid.
Cliff.
A couple of sales well above reserve
This has to be the highest " above reserve " sale I've seen . There were complained about the millers point ex gov sales being 1 mill above reserve but 2 million ?
And this from Matraville , which is probably the worst suburb on the east of sydney , ex struggle st , lots of industry
Despite the shared driveway, neighbouring industrial area and the front fence slanting like the tower of Pisa, the three-bedroom, double brick Californian bungalow sold $148,000 over reserve for $1,202,000. The difference between winning and losing was a $500 bid.
Cliff.
Number of property sales up
The number of property sales is increasing with the east coast leading the way
According to the latest BOQ Spring Buyer?s Guide, there was a 14.8 per cent increase in sales in Queensland in the past year and a 19.8 per cent jump in Brisbane.
The guide, collated with figures from RP Data, revealed there were 480,790 house and unit sales nationally in the year to May, up 10.4 per cent on the same time a year ago.
It found the increase was driven predominantly by investors and upgraders with first home buyers still largely inactive.
Transaction levels are up in New South Wales.
The only state or territory to record a fall in demand were Western Australia, down by 1 per cent and the ACT where transaction levels dropped by 1.8 per cent.
New South Wales experienced a 13.6 per cent lift in transactions, while Tasmania went up by 11.2 per cent and South Australia and Victoria both increased by 9.5 per cent.
One of the tools I've found useful over the years is applying the principles of technical analysis as applied to shares to the property market. The concept of trends , support and resistance seem to hold true . One of the key concepts of a trend is that if the trend is accompanied by increasing volume , that trend is more likely to be significant , and continue .
So this report that shows the current price increases are accompanied by increasing volume is another reassurance that the trend is likely to continue .
Cliff
The number of property sales is increasing with the east coast leading the way
According to the latest BOQ Spring Buyer?s Guide, there was a 14.8 per cent increase in sales in Queensland in the past year and a 19.8 per cent jump in Brisbane.
The guide, collated with figures from RP Data, revealed there were 480,790 house and unit sales nationally in the year to May, up 10.4 per cent on the same time a year ago.
It found the increase was driven predominantly by investors and upgraders with first home buyers still largely inactive.
Transaction levels are up in New South Wales.
The only state or territory to record a fall in demand were Western Australia, down by 1 per cent and the ACT where transaction levels dropped by 1.8 per cent.
New South Wales experienced a 13.6 per cent lift in transactions, while Tasmania went up by 11.2 per cent and South Australia and Victoria both increased by 9.5 per cent.
One of the tools I've found useful over the years is applying the principles of technical analysis as applied to shares to the property market. The concept of trends , support and resistance seem to hold true . One of the key concepts of a trend is that if the trend is accompanied by increasing volume , that trend is more likely to be significant , and continue .
So this report that shows the current price increases are accompanied by increasing volume is another reassurance that the trend is likely to continue .
Cliff
Median as reported by APM is now up 16.49% from 7 weeks ago.
Sydney?s hot early spring auction market keeps rising
Sydney?s hot early spring auction market keeps rising
Sydney?s hot early spring home auction market continues to rise towards record levels with another extraordinary 83.3 percent result recorded at the weekend. This weekend?s result was above the 82.7 percent rate recorded last weekend and is the sixth consecutive weekend with rates above 80 percent. This is the longest sequence recorded in Sydney since early April and reflects a market that has stepped up a gear over winter.
Spring auction numbers in Sydney have predictably risen steadily over recent weekends with this weekend?s 570 listings ahead of last weekend?s 522 auctions. Auction numbers will surge over the remainder of September with well over 600 auctions scheduled each weekend.
The upper north shore reported the highest clearance rate of all the suburban regions at the weekend with a 90.9 percent result from 55 reported auctions. This was followed by the south with a clearance rate of 87.3 percent, the inner west with 86.6 percent with the highest number of sales at 58, the lower north shore at 86.5 percent, Canterbury Bankstown 84.2 percent, the south west 82.6 percent, the west 82.1 percent and the city and east with a clearance rate of 80 percent from the highest number of auctions reported at 70.
The Sydney market has recorded its best-ever auction results for the month of August and its best -ever winter for sales and listings. The market is certainly well on track to follow up with another record performance over September.
Cliff
Sydney?s hot early spring auction market keeps rising
Sydney?s hot early spring home auction market continues to rise towards record levels with another extraordinary 83.3 percent result recorded at the weekend. This weekend?s result was above the 82.7 percent rate recorded last weekend and is the sixth consecutive weekend with rates above 80 percent. This is the longest sequence recorded in Sydney since early April and reflects a market that has stepped up a gear over winter.
Spring auction numbers in Sydney have predictably risen steadily over recent weekends with this weekend?s 570 listings ahead of last weekend?s 522 auctions. Auction numbers will surge over the remainder of September with well over 600 auctions scheduled each weekend.
The upper north shore reported the highest clearance rate of all the suburban regions at the weekend with a 90.9 percent result from 55 reported auctions. This was followed by the south with a clearance rate of 87.3 percent, the inner west with 86.6 percent with the highest number of sales at 58, the lower north shore at 86.5 percent, Canterbury Bankstown 84.2 percent, the south west 82.6 percent, the west 82.1 percent and the city and east with a clearance rate of 80 percent from the highest number of auctions reported at 70.
The Sydney market has recorded its best-ever auction results for the month of August and its best -ever winter for sales and listings. The market is certainly well on track to follow up with another record performance over September.
Cliff
I used to think there were lots of kids whose parents weree giving them money until I started going to auctions in the $700-900K range with my daughter. She (and many people I've talked to) are average young people who are buying their second home. So their first place went up and they have equity and now want to move into a better house. The craze has meant hopuses were going for way over what the vendor and agents think.
One place was on for $695K they got offers over. It was a mad scramble so they changed the listing to offers over $750K. It went for $840K.
I'm seeing average couples paying over $800K and borrowing over $500K, some way over. I warned of higher interest rates etc but apparently you "need" to pay $900K to get anything. The low interest rates have lured lots into a false sense of security. I'm scared for them.
It was very difficult to definitively identify a bubble until after the fact - that is, when its bursting confirmed its existence.
Former US Federal Reserve chairman Alan Greenspan..
http://www.abc.net.au/news/2014-06-...perty-prices-are-getting-out-of-reach/5517674
http://blog-imfdirect.imf.org/2014/06/11/era-of-benign-neglect-of-house-price-booms-is-over/
Former US Federal Reserve chairman Alan Greenspan..
http://www.abc.net.au/news/2014-06-...perty-prices-are-getting-out-of-reach/5517674
http://blog-imfdirect.imf.org/2014/06/11/era-of-benign-neglect-of-house-price-booms-is-over/
Seems to me this is Sydney's 1999-2001 moment. Most of us knew Sydney was going to run back in 2012, but wonder how many guessed it was a 1999-2001 moment
House prices surge
Can't link the whole article but I like the headline
Today's australian
THE spring housing market continued to bloom across capital cities over the weekend, with more than 1000 homes sold across Sydney and Melbourne alone. The average price in Sydney was $1.175 million ? for the same week last year it was $975,000. The average price of an auctioned Melbourne home was $825,000, up on $786,200 for the corresponding week last year.
Cliff
Can't link the whole article but I like the headline
Today's australian
THE spring housing market continued to bloom across capital cities over the weekend, with more than 1000 homes sold across Sydney and Melbourne alone. The average price in Sydney was $1.175 million ? for the same week last year it was $975,000. The average price of an auctioned Melbourne home was $825,000, up on $786,200 for the corresponding week last year.
Cliff
So, approx 5% in a year.
I wonder which suburbs were included...
Don't answer - it's a rhetorical question.
Of course; there are stock levels and the median to be added into those figures as well.
Hi Bayview
Remember this is a lets hype sydney thread
Based on those figures the relevant increase in Sydney is 22.8 %
Not even a hawks win ( which ain't gonna happen ) can save melbourne ...
Cliff
Most people who report on clearance rates quote the initial figure released on the the following day . This figure has now been above 80 for 5-6 weeks .
As has been pointed out in the past , this figure is usually revised down by around 2-4 % by the following week . The revised figure has been under 80 % since the " headline " rate cracked the 80 % mark , until now .
The revised figure for 6th Sept has now also cracked the 80 % level ( down from the the initial figure of 82.7 ) .
With a figure of 83.3 % for the 13 Sept , I'd expect the revised rate to stay above 80 % for the 13th ,
While the figure for the last two weeks has been quotes as 83 % , to the next decimal point , the figure went from 82.7 to 83.3 .
Cliff
As has been pointed out in the past , this figure is usually revised down by around 2-4 % by the following week . The revised figure has been under 80 % since the " headline " rate cracked the 80 % mark , until now .
The revised figure for 6th Sept has now also cracked the 80 % level ( down from the the initial figure of 82.7 ) .
With a figure of 83.3 % for the 13 Sept , I'd expect the revised rate to stay above 80 % for the 13th ,
While the figure for the last two weeks has been quotes as 83 % , to the next decimal point , the figure went from 82.7 to 83.3 .
Cliff
Prestige auction sales surged again
In a further breakdown of the Auction results from the 13th Sept along with all the info already linked to property Observer reports
Prestige auction sales surged again at the weekend with 28 sales reported above $2 million - well ahead of the 21 reported last weekend and the 22 in the prior weekend
Cliff
In a further breakdown of the Auction results from the 13th Sept along with all the info already linked to property Observer reports
Prestige auction sales surged again at the weekend with 28 sales reported above $2 million - well ahead of the 21 reported last weekend and the 22 in the prior weekend
Cliff
Crumbling Shack expects more that 1.8
Will be interesting to see what this place goes for .
The title is accurate , but the position , WOW
Down side ( for some ) is the place is heritage listed . one wonders if it might catch fire at some stage , and it would be important to know what restrictions of redevelopment there are
I don't know the Balmain market , but the quoted price of over 1.8 seems slightly under what I'd think . Generally if I see something quoted 1.8 , atm I'd think the agent expectations would be around 2.1 - 2.2
Won't be surprised if we see a headline of " Crumbling Shack goes 500,000 above expectations " ...
Cliff
Will be interesting to see what this place goes for .
The title is accurate , but the position , WOW
Down side ( for some ) is the place is heritage listed . one wonders if it might catch fire at some stage , and it would be important to know what restrictions of redevelopment there are
I don't know the Balmain market , but the quoted price of over 1.8 seems slightly under what I'd think
. Generally if I see something quoted 1.8 , atm I'd think the agent expectations would be around 2.1 - 2.2 Won't be surprised if we see a headline of " Crumbling Shack goes 500,000 above expectations " ...
Cliff
I'm all for Sydney hype, but would like to see everyone's thoughts on this:
BIS figures confirm Australian housing overvalued
"Confirming a recent analysis by the International Monetary Fund, the BIS has found that Australian home prices are higher than they typically have been when compared to rents and incomes.
Despite having had no real (inflation adjusted) property price growth over the three years up to when the BIS figures were taken at the start of 2014, Australian homes had the equal fourth highest price-to-rent ratio and second highest price-to-income ratio.
Australian home prices were 50 per cent higher than usual relative to rents, and around 40 per cent higher than usual when compared to incomes."
BIS figures confirm Australian housing overvalued
"Confirming a recent analysis by the International Monetary Fund, the BIS has found that Australian home prices are higher than they typically have been when compared to rents and incomes.
Despite having had no real (inflation adjusted) property price growth over the three years up to when the BIS figures were taken at the start of 2014, Australian homes had the equal fourth highest price-to-rent ratio and second highest price-to-income ratio.
Australian home prices were 50 per cent higher than usual relative to rents, and around 40 per cent higher than usual when compared to incomes."
That article is interesting. I would just like to point something out.
Australians are wealthy-as-****. If I remember right, the average (not median) net worth here is the highest or second highest in the world, at a click over $400,000USD a couple of years ago.
This is something to include in your consideration of the data on house affordability.
Lots of other stuff, but that's a big point.
Australians are wealthy-as-****. If I remember right, the average (not median) net worth here is the highest or second highest in the world, at a click over $400,000USD a couple of years ago.
This is something to include in your consideration of the data on house affordability.
Lots of other stuff, but that's a big point.
Yep.
And we're still wealthy.
And we're still wealthy.
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