A snap shot of what is happening on the ground in Melbourne

Slightly off topic, although a place I had under contract (for sale) in regional QLD just had the buyers pull out due to finance.

This credit crunch will be Australia wide. A recent blog I read from a Mortgage Broker says that it's almost as if the banks are looking for any excuse to deny finance, as is they they trying to 'teach' the government a lesson and show them who controls the economy.

 

The thought of nice family type homes ($800 - $1M) in middle/inner Melbourne dropping 10%+ is music to my ears.

Sure property has 'always been' expensive, but $650k for a standard home in Narre Warren, a very typical FHB area 40km out of Melb... sheesh... things have gone crazy in terms of affordability.

 

I don't think I'd put that spin on the banks behaviour. My interpretation is that they're being extremely cautious around the Royal Commission. They're taking the criticisms and regulation, then reacting in the most conservative manner they can.

Narre Warren is probably booming because it was cheap to begin with (cheaper than most of Melbourne). Definitely not the only place that's occurred. I don't think that the demand for property has really changed much, but the restricted lending environment means that people have to change their price point.

 

or have patience and wait for trickle down effect to filter in.

 

yep, seems to be the go-to move at the moment.

Speaking to others at auctions, and some local agents it seems everyone is frozen, holding their breathe. Nobody wants to commit at this stage and the talk of a bigger correction than normal is definitely in the air.

Regardless of fundamentals, might become a self fulfilling prophecy as everyone is just seemingly waiting for it.

 

The worst of it has been since this thread was started, so it's only just beginning I feel. There hasn't been any sense of panic with discounting yet...

 

The relatively bullish OP has disappeared since, that was fast ;-)

 

Yes, you can't ignore macroeconomics

 

???

Short term, no. Long term, maybe.

People (who express their frustrations on their government) need some pain first then they can open the credit floodgates again (without pesky APRA or other government measures to worry about) and keep the party going for the next cycle.

 

I'm noticing reduction in price ranges ahead of auction now, interesting, previously this was happening two weeks after being passed in.

 

They are still on market, this time for less then what was passed in auction back in aug 18

141 Maud Street, Balwyn North VIC 3104 - House For Sale | Domain

 

2.1m and the house is so bad they can't even show pictures of the interior?

 

i'm pretty sure this is a former colleagues' parents-in-law home, they sold it a few years ago to offshore chinese... it had sat idle for at least 2 years with smashed windows and squatters ... that may be why no photos.

 

as @Graeme posted, they underwent auction in aug 18, rejected the offer @2.11mn, went to market @2.45mn now revised it @2-2.1mn,

Given that 'magic touch value add' active investors have become a rarity in current frothy markets,
@The Y-man what do you think this one will go for? 1.6mn?

 

if it's the same one and i'm fairly confident it is (i distinctly remember those unique front windows) - it was going to be a knock down job, they wanted a site for some 60sq monstrosity but for whatever reason it never went ahead... it had been their family home for 3 decades or something and parents were torn, they got top dollar at the time which numbed the pain i suspect