What is happening?

S

stargazer

Hi all

I live approx 9km North East from the CBD in Adelaide. In my immediate area there have been approx 25 properties come up for sale in the last week.

Has this been happening in your area or city?

Why do you think this is happening?

Do people feel they can get good prices for there properties still?

Are people anticipating drops in values in the not to distant future?

Noticed REA President on TV talking up the property market in Adelaide and saying this is the time to buy. Also this is the time to sell as still good prices can be achieved.


Cheers
BC
 
bonecrusher said:
Hi all

I live approx 9km North East from the CBD in Adelaide. In my immediate area there have been approx 25 properties come up for sale in the last week.

Has this been happening in your area or city?

Why do you think this is happening?

Do people feel they can get good prices for there properties still?

Are people anticipating drops in values in the not to distant future?

Noticed REA President on TV talking up the property market in Adelaide and saying this is the time to buy. Also this is the time to sell as still good prices can be achieved.


Cheers
BC
Click to expand...


Hi BC;

What's happening, indeed ! In the NSW areas that I check daily (via Domain, re.com, etc) there has also been a significant increase in listings - but at what appear to be boom prices. So, not disimilar to Adelaide.

As to which way it'll go, I can only confidently guess; not up !

Even respected pundits opinions, fluctuate from 'massive correction to come' to 'we've reached the bottom'

I usually rely on my insicts, but they haven't kicked in yet on this one, so I'll wait some more.

Cheers
JamesP
 
I would guess that the media stories of Sydney properties dropping by 40% have reached Adelaide, and people want to sell up before that happens there.
 
ralph wiggum said:
I would guess that the media stories of Sydney properties dropping by 40% have reached Adelaide, and people want to sell up before that happens there.
Click to expand...

Hi Ralph Wiggum;

Where did you see news of property dropping 40%, may I ask ?

JamesP
 
40% drops in Sydney - are they stories or is it really happening? the rental yield must be looking attractive at that surely?

many possible reasons behind the increased listings:

- market is collapsing
- change of season
- the local factory has shut down
- coincidence
- your negative sentiment (if you are bearish?) is now seeing what you didn't before

interesting though. Personally I am going through sellers remorse ATM. my grandmothers house that was sold for $245,000 4 years ago has just come onthe market at $570,000. this seems to happen to every property I have owned. maybe kevin young is right... never ever sell?!
 
I think you will find it is not as much about a flood of property coming onto the market as it is more about the sale process taking longer. During the "Boom" property sold in 1-2 weeks max therefore with 30 days settlement it would have the sign and advertising removed in around 45 days max. In Brisbane the average days on market is now 72 days to sell, add 30 days for settlement and it now sits for over 100 days. Big difference and I suspect this is what you are noticing, and Brisbane is one of Australia's best current markets. Supply and demand reflects the sale price of any product and now supply is greater than demand I suggest prices will not rise, at least not significantly. It's in these times Location becomes vital.

Kev

www.kevinhockey.com.au
 
From where I'm sitting in sleepy Tassie, I see it the same way as Kev.

I'm listing less per month at the moment but we have a lot more listing than we've had for 3 - 4 years as we're also selling less and properties are taking longer to sell.

That all adds up to a lot more on the market and IMHO we'll see pressure on prices ease. If the properties sit around for a while sellers will start competing for buyers creating a buyers market and prices will start to drop.

I'm betting we'll see a few bargains in the next year or two.

Please note that I'm only refering to my little part of the world and they're only my observations. To me, it feels like it did in 1994 & 1995 when the market started to slow down dramatically.

It makes it hard to get a feel what's happening in the rest of Australia because what's happening here taints my vision.

Cheers :)
 
Last edited:
Ditto for SOS and Kevin.

I'm in the southern beach suburbs in Adelaide and it now looks like there are a lot of properties on the market. I think we are still getting the same number of people selling but it takes longer to sell therefore more signs are up because they are staying up longer.

There are always going to be people who need to sell there houses, divorce, purchase something else, move interstate or OS.

cheers
quoll
 
I am looking every day, and seeing houses up for sale for some time. One across the road from me has been up for sale now 12 months. I am starting to see them everywhere, "I am sure I hear the Movie Jaws" soundtrack running in my head as I go round and wait for the right opportunity to stike and pick up a bargan or two.

LOL
John
 
A small aside...

As property is taking longer to sell, at any point in time there should be more properties on the market.

This doesn't mean that more people are trying to sell, just that it takes longer for sales to complete.

Cheers,

Aceyducey

PS: Anyone who wants to sell a property for 40% less than it was worth last year, let me know!
 
G'Day

I have just been notified of a valuation for a loan I'm writing.

The customer had applied to the same lender about this time last year, the same valuation firm was engaged, the valuation was $360,000.

This week's valuation - with four comparative sales presented in the report - was $320,000.

Uh Oh!

This is a very nice house in a prime position, in good condition, well built and well presented.

The customer has taken it on the chin but that's a fair whack at that price point.

The valuers are becoming increasingly cautious and are not taking any chances with their professional liability. For high LVR deals I can understand a lender wanting to build in a bit more safety margin, but this deal is 80%LVR and indicates a return to conservative values.

Cheers

Kristine
 
Jakk said:
I'm even interested at 39% less

regards
Click to expand...

Jakk

You'll have to change your title to celebrety slum lord, the huge price drops where in the $1mil or higher bracket. :(

cheers
quoll
 
Kristine.. said:
G'Day

I have just been notified of a valuation for a loan I'm writing.

The customer had applied to the same lender about this time last year, the same valuation firm was engaged, the valuation was $360,000.

This week's valuation - with four comparative sales presented in the report - was $320,000.

Uh Oh!

This is a very nice house in a prime position, in good condition, well built and well presented.

The customer has taken it on the chin but that's a fair whack at that price point.

The valuers are becoming increasingly cautious and are not taking any chances with their professional liability. For high LVR deals I can understand a lender wanting to build in a bit more safety margin, but this deal is 80%LVR and indicates a return to conservative values.

Cheers

Kristine
Click to expand...

Good point Kristine

I had the valuer around a couple of weeks ago, and most of mine haven't changed but a couple have come in just under the last valuation that was Nov 2003. Same valuer.

Hadn't thought about it under I read your post.

cheers
quoll
 
Hi all,

In the small town where I live (Biloela Qld 4715) most properties for sale are being sold at auction for prices that are higher then a year ago. I suspect this is due to the mining boom more then the property boom.
Cheers
 
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