NSW Glenwood: why is it priced so high?

I was looking at this property and it is priced at $850-$900k.
35 Southwaite Crescent, Glenwood, NSW 2768
https://www.realestate.com.au/property-house-nsw-glenwood-133449302

While bigger land sized property and one more room on the same street was sold for $745k ( a year back)
5 Southwaite Crescent, Glenwood, NSW 2768
https://www.realestate.com.au/sold/property-house-nsw-glenwood-129873602

Do agents quote price whatever they feel like? What’s the catch here?
i feel agents/ seller do not mark down their prices when market has soften compare to easily jacking up when condition is better? Anybody can shed some light on what am I missing here?
Thanks in advance.

 

It’s up to the vendor as to how they want to price it. The agents can guide or suggest pricing, but ultimately it’s up to the vendor.

 

So how much would you offer for this property then under the current market situation?

 

Better to ask someone following the area, I don’t follow it.

 

I mean based in the property sold last year. I don’t think there is a massive infrastructure change happened in a year and I don’t see any other property on the street selling for higher.

 

23 Thompson Crescent Glenwood sold in Feb 2020 for $980K.
It is also 3 bed, 2 bath, 2 car garage. On 451 sqm land
Perhaps your method of comparing only sales in the same street is not helping?
They all seem to be going for well over $800K

 

Asking price does not equal selling price/ market value

 

I know that but I suppose you may be discouraged low ball to mid 700 when asking is 900 for example.

 

You seem to feel hard done by, but you don't have to buy that house or make an offer on it. If the price is too high, just move on.

 

Contrary to the expected implosion I'm seeing quick sales and solid prices in the north west.

For a PPOR I would try and look for something closer to the high school

 

Hi @Zammy unfortunately one sale result, as in this case with 5 Southwaite Cres, does not make a market. In fact, if you conduct further research, you'll note that there's been actually only been 6 sales in the last 12 months of freestanding houses under $850K in Glenwood, the majority of these in compromised locations close to Old Windsor Rd, M7 etc.

The current house median price is $980K, and though I don't know the specific circumstances of the 5 Southwaite Cres sale, you also need to remember that 2018 going into early 2019 (up until the federal election in May) was a period of stagnant and negative growth in many suburbs, Glenwood included (-4.4% for houses in 2018) We had some excellent buying for those clients who stayed the course in early 2019 when other buyers were fence sitting, so though 5 Southwaite looked like good buying even back then (more of a Parklea price actually than a Glenwood one ), there could have been extenuating circumstances, along with a lack of buyers. Also an out of area agent and a highly motivated vendor could have made a difference...

You mention that the market has softened, but this is not necessarily the case in all suburbs, and, as @twobobsworth has mentioned, the north west doesn't appear to have fallen victim here in a significant way, despite the current challenges. Sure, there's reticence and uncertainty, but this doesn't mean sellers are discounting by huge amounts. One of the key factors here is a real lack of new stock, and I can tell you, as a BA in this market, what we're seeing is stock definitely down compared to even this time last year. Vendors are reluctant to list, but with less stock to then choose from, those active buyers (and they're still out there!) are still competing. For example, we have a Hills client at the moment and properties that we shortlist are selling as quickly as they were prior to Covid. A recent example was a house first opened last Sat, with just under 40 groups through and it went under contract this Tues. Another on the market for 2 opens, 7 contracts issued and sold within 11 days of listing. These were both $1.1-1.2m properties in nearby suburbs to Glenwood.

The owner of 35 Southwaite may be aiming a little higher due to the real lack of comparable stock. After all, how many other 3x2x2 houses (not on community title) are for sale in Glenwood right now? Personally, and without inspecting, I can't comment on pricing but the location isn't ideal, right next to Parklea markets and the T-Way, but everything has it's price. Best of luck with your search and if you only have a budget of mid $700K's I'd suggest moving further west towards SG, Parklea and Quakers Hill. Sure, try making a lowball and seeing what happens (you never know your luck after all) and I hope you find what you're looking for. Happy hunting!

 

I live and grew up in Glenwood and even the 5 Southwaite Crescent sale has me shocked.

I haven't seen a house like that sell in that price range for a few years now (maybe 2016?)

Generally to pick up something that isn't a duplex, or isn't a small block of land, or in a compromised location you would need $850K in today's market.

The top agents in the area like Shiv Nair, Ruma Mundi, Diljot Randhawa can get you a bit more then that - as they manage the market share in the area and have well-oiled processes and databases.

 

Interestingly it was initially advertised for $835-865K late 2018 and then dropped to $770-835K just before it sold. Could be a combination of events and reasons we aren't privvy to, but a considering a lack of competition, a poor negotiator for a selling agent, a highly motivated seller and who knows what issues the house may have had (yes even younger houses get termites/suffer from structural problems) could have just presented an opportunity for a lucky buyer.

 

Very comparable style and age of houses. 1 year ago was pretty much the bottom of the market just before the elections. After the elections till early Jan, the market picked up about 10% in this area. But is it worth $150k more ? It all depends on demand and supply, but more importantly is what the vendors want.