Sunday, Aug 06, 2006

Housing

Sun-Herald (Australia): Home buyers ready to swoop

Vendors risk longer sale times and a drop in house prices as Sydney's real estate market prepares for "all hell to break loose" later this year, an industry expert has warned.

Posted by bigwavedave @ 05:37 PM (1632 views)
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3 Comments

1. Flubber said...

I read the following with surprise..."Vendors will be aware of that too, as we've been saying all week that interest rate rises and property prices don't mix."

Don't understand that - they seem to mix well when interest rates go down and property prices go sky high, why don't they mix vicer versa?

Sunday, August 6, 2006 07:55PM Report Comment
 

2. monty said...

I believe that the implication is "interest rate rises and [high] property prices don't mix".

Monday, August 7, 2006 09:21AM Report Comment
 

3. inbreda said...

The article doesn't make much sense to me:

""Most buyers in the marketplace still want to buy... "

Surely if they didn't want to buy, they wouldn't be called buyers? It's not a particularly informative statement is it.

"in a good market that figure was as low as 5 per cent, while in tougher times up to 20 per cent of vendors withdrew their homes from auction on the day"

The article seems to suggest that vendors are getting pretty scared about not being able to offload their property - so why would that lead to an increase in the percentatge withdrawaing from the auction?

Personally I think the thing to look out for is a sharp reduction in the number of Buy to Losers buying at auction. If they start feeling the pinch of IR rise on their debts, or try to borrow against a property and the valuation comes back at less than they expected, they will be the first people to stop attending auctions. The market in the UK has been held up by these idiots for quite a while, and signs of their leaving would be a major factor in bringing prices down.

Monday, August 7, 2006 11:26AM Report Comment
 

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