Property prices beginning to drop

Bleak I suppose so.. but if housing prices stay artificially high and you own property then things could be a lot worse

 

Vacancy rates going through the roof in Sydney. It's already starting.

Availability of easy credit will hold house prices up only so far as buyers are able to access that credit. With widespread unemployment/recessionary environment, and now with rocketing vacancy rates, we will see investors even on low interest IO loans have to bite the bullet and sell.
Sydney rental vacancies climb to highest in country after another mass tenant exodus - realestate.com.au

So even if interest rates go negative and u are able to obtain a ZERO interest home loan. How are you going to qualify if you are jobless?

And as you mentioned, if things go inflationary with excess $$ being thrown in the system, it will make it so much harder for those with jobs to access the low interest loans as banks will also increase some of their calculations.

Once the gov dials back any ongoing big payments like Jobkeeper, which they have to eventually, its not gonna be pretty.

And yeah, i can guarantee COVID is gonna be a recurrent problem for the global economy for the next year or so, especially with big epicenters and population centers like USA/Brazil/EU/Africa/Asia all opening their economies and having another spike in cases.

 

Went to couple open homes in inner Brisbane 1.5-2m price range , very small crowds . As in a handful of people at the ones I was at .

few months back you had to park at the end of the street . Might be just the particular houses

 

Right,

- so they can't lower their rents to counter?
- every investor's going to sell?

How much is unemployment? Is it 10% or 90%? Say 10 out of 100 investors are jobless. Panic, panic! Will all 100 sell? Most people are going to be okay, did you know?

Why would people with jobs need to access low interest loans if they have no issues making repayments? Repayments are already not that high with low rates.

Sorta agree with this. But has every employer in Australia furloughed or laid off staff? Not all of Australia is on JobKeeper/Seeker, in fact most of Australia isn't. Are you on either? Are you having trouble with repayments?

This CV is not going away, just like the flu. If it's not this round of CV, it'll be another type of CV in a few years, then another..

Finally, stop making the problem worse than it already is. It is exactly posts/media reports like these that make matters much worse than they need to be. And more you spiel off you're in the medical profession, I have family on the frontline too. While they say the problem isn't good, each one of them says MOST people will not feel any ill effects. Each one of them says it's the easy access to social media is what's making this worse than it should be, it's making people panic.

What about all those people that die of cancer, suicide, road accidents, alcohol and tobacco abuse? Property does not fall in value if say an extra 10m die due to some aggressive cancer. It's these sensationalist media reports and posts like yours that fanned the toilet paper syndrome.

Jeez dude, if there's a *REAL* virus/bacteria out on the streets that kills like 20% of the people it infects, what are you going to write/do?

 

I’m monitoring the outer East, so to name a few: Croydon, Ringwood, Heathmont, Bayswater North, Ferntree Gully etc..
Seeing interest in well presented houses but prices are still falling below top of indicative range. Houses that are poorly presented are sitting for quite some time until asking price is dropped.
At a guess, sale prices have fallen 5% since February 2020. Hard to know what it will do moving forward as we have competing factors as pointed out by some members on the forum.

 

W - I can't see how that post is making anything worse?
Vacancy rates are getting high in Sydney and the low credit situation definately rings true.
To add to the jobless situation we may experience in September, the lack of migration is also worth mentioning.
What would you rather talk about?
The shortage of housing we don't have
How migration is going through the roof
How unemployment rate is lowering
How we are not in a recession
How trade tensions are benefiting us
Maybe it's you who overeacted. Others here just simply discussing a few points that are certainly worth discussing.
Covid19 is a REal virus and lets hope we all continue to treat it that way so we don't end up like Italy,France ect

 

One certainty is that the procrastinators will not buy even if prices dip 20% and there's blood on the streets.

 

I see the slow slide starting to gain a little bit of momentum, there are still pockets where good prices are achieved but in general those that were in denial about property needing to be discounted to reflect economic reality are starting to come around. Agents will continue to say buyers are “bargain hunting” but they are comparing to prices achieved during the height of a bubble fuelled by cheap debt and unsustainable credit growth. The price of property is still significantly overpriced in most capital cities. The government will throw more at this as a sharp slide will hurt everyone but perhaps they are also realising they can’t continue to rely on this as their go to for economic growth and they need to start get real about investing in something a little more sustainable and long term that drives productivity and innovation.

 

Western Sydney. This week about 20 new land Home packages got sold in Schofield versus Blacktiwn only 3 properties. Unusual proposition. This is very clear the new build is getting attraction due to 25k govt grant..

 

So is now a good or bad time to buy a small townhouse/apartment or not.

 

5%-10% drop is what I have observed compared to Dec19-Feb20.

 

Great buying opportunities for investors that are have the ability purchase more. I think this may be a great opportunity for some investors to reconsider their investing strategies and really see if their current IPs were good choices.

 

Hi Jins, yes agree this is potentially a good opportunity for investors. Are you also able be more specific about this being an opportunity for investors to reconsider the investing strategies? Do you think investors should be buying a completely type of IP now?

 

It isn't doing anything great either.

Is there a shortage of housing? Where do you a see a shortage? There're thousands upon thousands new homes and apartment being built.

I agree migration is affected, so is employment. That Dumbenburg treasurer we have, told people on national TV - "hey, we've noticed a 0.7% drop, we're in a recession" I'm not an economist, but I don't see how a 0.7% drop constitutes a recession. People at those levels should be sending comforting messages to people - "hey, we've got a problem on our hands. We've noticed a small drop, the economy's slid 0.7%, it'll likely slide a bit more while we deal with the issue". Fear-mongering at its finest.

Trade tensions? Those people that we do trade with, we shouldn't be buying from those people anyway. Grow local. But no, they've sold this once great country to you know who I'm talking about.

Oh wait, I poured some positivity into your negativity thread, maybe that's why you're miffed.

Lol no, I don't see how I overreacted. Also, I just presented my opinion too.

When property was booming, were you writing of any property deals you did, if any that is (choosing the handle of "Property Baron" doesn't make you one)? Were you helping people on the forum with some quality deals? I helped someone on the forum buy an excellent property this past weekend, complete stranger to me.

It's okay though, I'm ready to buy if property does really drop to say 15-20% levels. I assure you the govt's going to do everything it can to stop it from sliding that far.

I didn't say this round of CV isn't a real virus. Besides. COVID19 isn't the virus, it's the disease cause by this CV, more specifically it's the rapid onset of pneumonia in predominantly co-morbid individuals. Did you know most people are going to survive? The vast majority who sadly lost their lives were pretty sick in one way or another. Finally, what I meant by "real" was a deadly pathogen that carries a much more lethal payload. What would do that do to this world? Concrete bunkers!

Breed positivity people. Don't fan the flame.

 

Well, I feel that with some investors that may have bought into blue chip suburbs suffered a reduction in rent, but for me personally, it has been business as per usual and have not suffered any rental decreases.

Unfortunately, I'm not willing to share where I've invested, but at least I'm not here to sell anything in the forum.

 

Lol I didn't say there was a shortage of housing quiet the opposite actually hence the thread discussion.. read the whole thing rather than just quote bits that suite you.
Australia obviously needs trade it helps the economy grow.
This is not negative thread just a thread to discuss if anyone has also noticed property prices beginning to decline, this can be positive actually just like you say you are ready to buy if things do decline, how is thqat negative?
Your the only one that I have heard say panic panic sell! fairdinkum how can a simple thread on propertychat make the current situation worse.
Talk about jump the gun

 

Bwahaha! Love it.

 

The "Is now a good time to buy" question. Let me answer it in this way: the people who do well in real estate are generally the people who have bought.

 

Lol

 

I find this statement the most fascinating part of real estate. Those with a vested interest in it seem to live and die by the always be positive mindset, and I used to find it very disingenuine. But hey, what you said is absolutely true, a lot of the time that collective positivity by those in the market actually does make a difference, so I completely understand why those in the business act in that way.