COVID-19 impacts on the Australian economy & housing market

Discussion in 'Property Market Economics' started by Redom, 17th Mar, 2020.

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  1. Jello_B

    Jello_B Well-Known Member

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    4 auctions in Annandale yesterday. 3 withdrawn, 1 sold. Have a guess which one gets published and accounted for in Domain results for Saturday clearance rate. Same agency. Something needs to be done to clean out real estate agent deceit, they basically lie to pump pricing.
     
  2. hieund85

    hieund85 Well-Known Member

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    I don't like that but don't think it is illegal or even wrong actually. If a product is not good to sell, the seller can withdraw that product from the market. Because it is withdrawn, it does not need to be reported. It is up to buyers/investors to analyse the data in the right way.
     
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  3. Jello_B

    Jello_B Well-Known Member

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    Domain reports withdrawn properties. Real estate agents are trying to hide the fact that properties are withdrawn to keep the clearance rate higher. It is dishonest and deceitful. How are buyers/investors supposed to analyse the data when you have an industry that is deliberately trying to manipulate information.
     
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  4. hieund85

    hieund85 Well-Known Member

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    You said Domain does report withdrawn properties. So if I look into their data with high clearance rate but also with a large number of winthdrawn properties, I can see that the clearance rate does not provide the full picture/is less reliable.
     
  5. The Y-man

    The Y-man Moderator Staff Member

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    It all starts looking ok when you are selling..... :D

    The Y-man
     
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  6. wylie

    wylie Moderator Staff Member

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    If a property is withdrawn prior to auction, then it wasn never actually auctioned, so wouldn't be expected to be part of the figures, would it?

    I understand it can prove that the market is slow, and the vendors decided against having a flop of an auction, but still, it wasn't auctioned.
     
  7. Jello_B

    Jello_B Well-Known Member

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    They do report withdrawn properties, they use withdrawn properties to calculate clearance rates. The lie comes in when real estate agents withhold outcomes. As an example, if 500 properties are withdrawn over the weekend, and they only report 100 it skews the clearance rate. They are manipulating data.
     
  8. Jello_B

    Jello_B Well-Known Member

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    It is, withdrawn properties are included in clearance rates.
     
  9. Jello_B

    Jello_B Well-Known Member

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    Haha kind of. Would rather have accurate data myself. It’s a pity as there are good real estate agents, but on the whole they need a broom through the industry.
     
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  10. Ummm

    Ummm Well-Known Member

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    Either were the ones that sold prior (or after) that they still report as sold at auction to boost clearance rates...the industry is full of dodgy reporting...and they wonder why they aren't seen as trustworthy..
     
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  11. hieund85

    hieund85 Well-Known Member

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    That's why I've never looked at clearance rate alone. Especially during a downturn. People pay too much attention and try to draw too many conclusions from the clearance rates in Mel and Syd imo.
     
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  12. DueDiligence

    DueDiligence Well-Known Member

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    The same way they navigate a general lack of price discovery in everything due to QE and every other distortionary macro policy at play.
     
  13. Wattle

    Wattle Active Member

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    I haven’t had a look at the rental market in a about a month or so, but looks like its fallen off a cliff. A decent 30-40% reduction in prices, I suspect these are all airbnbs sitting empty and looking for rental as they are in the areas in Sydney where I think airbnbs would be higher.
    Anyone know how the broader market is tracking?
     
  14. DueDiligence

    DueDiligence Well-Known Member

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    It’s down monthly. CoreLogic has removed the daily hedonic and the back series. Take from that what you will , but it’s heading down, not up.
     
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  15. Scott No Mates

    Scott No Mates Well-Known Member

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    The Sydney market is much bigger than just Airbnb, there appear to be several newer properties to market asking the old rent with the expectation of achieving it, properties which have been sitting vacant for more than a couple of weeks are seeing reductions or incentives.
     
  16. tonyvooz

    tonyvooz Active Member

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    The numbers are out and confirm that we are in recession. :(

    https://www.smh.com.au/politics/fed...gative-growth-in-9-years-20200603-p54z0f.html

     
  17. Jimmyay

    Jimmyay Well-Known Member

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    We will be in recession......but it isnt the end of the world. I am actually more hopeful now for Australia's prospects and whilst it's going to be a tough old year and way out of this, and a shock for many Aussies who even at aged 50 may never have experienced a recession, some good could come of it.

    And when you compared our performance to other countries - 0.3% in the March quarter for Australia was actually pretty good.

    UK numbers were -2%. Eurozone was -3.8% and the US 1.3% for the same period.

    Our lockdown has been horribly disruptive and damaging but not as harsh and total elsewhere. We might recover better than others.
     
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  18. Illusivedreams

    Illusivedreams Well-Known Member

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    Withdrawn properties are counted as no sale reducing clearance rate.
     
  19. Illusivedreams

    Illusivedreams Well-Known Member

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    Process is Always the same.

    mid you don’t like it don’t use the figures to gauge market.

    get off bottom go to auction and see for your self.

    information is provided for free at some one else time and expense .
    The process does not have to work the way you would like it to, Does it? Why not start your own index;)



    Then we want to know how many auctions were listed altogether.

    That includes auctions that went ahead on the day, auctions that didn’t go ahead because the home sold prior, and auctions that didn’t go ahead because the property was withdrawn from auction – either pulled from the market completely or switched to private sale.

    How are auction clearance rates calculated?
     
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  20. Jello_B

    Jello_B Well-Known Member

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    Not when the real estate agent is a dodgy arse and only reports sold properties and not withdrawn properties.