Property prices beginning to drop

I just logged in to say spot on. I have been seeing the same up in the Hunter Region. It's amazing how people think.

 

Thought fhb dont need deposits anymore (well in NSW anyway) and those going for the more expensive stuff would generally have a bit of equity in their back pockets or family support.

Saving rates should also be through the roof right now! Think about all those saved $20-60k family holidays :/

 

that's what I have been thinking, there are some FHBers out there, may be with a baby, would love to update to a house, they might have family support of like 200k to pay for a deposit for a Sydney house...

the biggest issue is, these "support" would run out, unless the world economy has a speedy recovery, we can see a second wave of property prices dropping, this time "support" can be thin. Price drop could be more severe.

 

Good point. You'd think so but looks like the Government is stepping in too.

 

No, if those things are affecting price levels already then its not fake. That would be a legitimate drop.

Legitimate drop would be caused be less money available and unwilling buyers. Not delayed buyers which I'm referring to as a fake.

 

Meanwhile....life on the ground...

3 of my friends have sold/are selling....

One sold in Feb/early March? : upper North Shore....getting ready for Auction....sold pre Auction at offer 50K ABOVE her expected price..

Another sold also around the same time in Kellyville...

Note : 1 couple are both bankers and the other couple is lawyer/finance background...in other words, their ears are very close to the ground.

They are renting at the moment ...and waiting...

Another friend is in Ryde area...auction fell through the last few weeks ..house still on the moment..getting worried/desperate...this friend is downsizing..

Actually all 3 friends are Generation X in their 50s... 2 of them are downsizing, trying to boost their cash reserves...

 

I'm curious if the same sort of thing happened in beginning of the 2018-19 downturn where general indicators (eg Corelogic) were showing that there were drops at a state level, but people were still seeing prices hold up? I know the situations are very different.

 

FHB do need deposits. You may be talking about Federal Government’s Low Deposit Scheme, but those places are limited, and with limited lenders. Moreover, I am talking about lower valuation. Home buyers have to chip in with the valuation shortfall. No scheme caters for that. The low deposit scheme is all good in growing market, but in dipping market low deposit can quickly turn into negative equity which banks will be mindful of before lending.

 

So is there low stock in these areas, why its holding up??

just trying to understand

I think what happen in terms of prices will be very much dependent on area/suburb and product

Wonder whats happening in Western burbs of Syd??

 

Property prices in Yamba certainly aren't on the decline, as one forum member can attest to after a not so long ago visit to the area and surrounds. They were actually shocked at the prices (high) in the area. Possibly cashed up escapees from Sydney pushing prices skywards.

 

I cant see properties in Carlingford/Epping Sydney area getting good prices any longer like back in the boom in the 2015/2016 era

This one 5 minutes walk to the main shopping center and sold off 1.55 on the weekend when it was sold 1.7 in 2016 https://www.realestate.com.au/sold/property-house-nsw-carlingford-133063926

Too many units had been built since as well ... rents are struggling

 

Usually the barometer for the rest of Sydney, and NSW as a whole, haha

 

https://www.realestate.com.au/property/8-acacia-cct-yamba-nsw-2464

This was listed March 29 2020 for 1.2 sold for $1,005,000 3rd July 2020 -16% drop - plenty drops in Yamba and plenty holding there too.

There seems to be drops wherever I look at the moment

 

Prices in Melbourne are still 10% higher than they were 12 months ago. The sales numbers are so low that the numbers don't accurately reflect the state of the market. There's actually heaps of pent up demand for good quality properties.

 

This property was listed with a price range of 1,030,000 - 1,116,000. It sold for 25k under the lower end. What a REA agent lists a property for and it's market value can be chalk and cheese.
It certainly wasn't a 16% drop!
The vendors would be over the moon with the price they got. Way more than it is actually worth in my view!

 

The property was listed for 1.2m in March 2020
Sold for 1,050,000 July 2020
Thats $192,000 less than listed for in March = 16% below listed price
You may have different price listings than I'm seeing?
What would you consider a 5 bedder water front home in Yamba to be worth? well under a mil??

I can show you more selling under the advertised price there
Love Yamba too

 

I recently spoke to an agent here in Adelaide, who informed me that we have the lowest housing stock levels in 20 years.

 

I saw the property initially listed for the price range I stated. So, going by my reckoning it selling for 1,005,000 is @ 2.5% under bottom quoted price range.
I never factor the advertised price into determining the value of a property. But, that's just me.
What REA's put on as a sales estimation often is triggered by their commission outlook.

 

But what was it actually worth in your opinion if you say it's worth way under that?

 

Please don't get me wrong, this property is more than desirable, but it is on approx. 648sq.m of land, which I know for some would seem more than adequate, but in Yamba, in general is a little on the small side. Certainly not a major downside but something to consider when doing comparative due diligence.
In my view, 900k would have been a solid result; so what the vendors achieved, as I said, would have them over the moon. I suspect this was money from outside the area e.g. Sydney, Melbourne.
My family home, before downsizing was in this circuit.