My daughter and her partner had their first open a week ago [house at central coast], over 40 people went through, yesterdays open - less than 6 Luckily they got an offer which they accepted, it was $30,000 less than they were offered last week but a more realistic price - seems the market is spooked by the interest rates rise. Went to a first 'open' yesterday and only 8 people were there - am noticing more houses being passed in at auction. Time for me to pounce as I am cashed up and dont need finance. Here's hoping PS Have to remember when I sell my house I will be at the mercy of the market
Went to an auction up the road from my house in western sydney, was packed and the bidding went to the normal silly prices. I am seeing a lack of interest in rental level properties where I live but still very strong demand for owner occupier/higher end.
Yeah its not like people aren't buying. It's just not as frenetic and the prices aren't being pushed to the same levels as they were. This is only to be expected when the amount of money people can borrow has tapered off or diminished. We have to be careful not to think the post APRA environment has created an either /or situation of UP or DOWN. There is a 3rd option... where stable and sensible takes over. Borrowing capacity has diminished, but it hasnt disappeared. There are just fewer buyers in general, with less money in general. But owner occupiers havent seen servicing diminish- new money was always assessed with buffers. It's existing OFI debt that has seen the biggest change. It's the froth that's been stopped, not the core market
So who on earth are buying thewe western syndey properties? Cant for the l I fe of me work out who would? Terrible yields End of cycle Rise in interest rates Fierce competition Better alternatives Are they herd followers who finally think that its so hot its time for them to buy?
Don't forget roughly 70% of buyers are owner occupiers who don't really care about yields/cycles..... They just want a roof over their heads
OK guys. Hold your hats and get ready to weather the Sydney storm. 6 years to go before we go on a frenzy again.
Agree with you there....the people getting in now...are about learn a hard lesson... True....but the OO will be crying when the music stops...happens every cycle. The people who buy with the heart instead of the head irregardless of whether they are investors or not...will feel some pain... York....some people don't believe the storm clouds are on the horizon... Waiting 6 years....for another upturn is about right....
Slow down a bit . Sydney didn't go Gaga until around 2012 ..... So that's nine years from now . 2009 -2011 was a good time to accumulate . Cliff
