Tuesday, Sep 12, 2006

OZ market crashes 40%

Domain AU: Neighbours rethink plans after a shock in the street

The sale of 48 Feather Street for $260,000 shocked many in the street; the house had brought $450,000 in 2004. Last weekend's auction had been a forced sale after the owners could not meet the interest repayments on the $405,000 they borrowed to buy it.

Most who bought in the street during that market peak paid between $290,000-$350,000 for their homes, including Ray Attard, a milkman, who bought the house next door for $350,000 in 2003. Attard had been astonished when his neighbours paid $450,000.

"I thought they paid too much for the house. It was outrageously overpriced at the time," he says.

Attard was nonchalant about the property's 42 per cent price fall. His home's worth had increased to $370,000 in a valuation by a real estate agent earlier this year.

His brother, who also lives in Feather Street and paid $338,500 in 2004 for his property, also received a valuation - down to $315,000.

Others in the street are concerned about how the price fall might affect the value of their homes.

Posted by domain au @ 02:14 PM (948 views)
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7 Comments

1. Surfgatinho said...

This isn't about the same property that has been posted here twice before?
Yeah, it's a sign that the pressure is on over there but I don't think it is entirely representative of the whole market

Tuesday, September 12, 2006 10:03PM Report Comment
 

2. Hans said...

Nope its not the entire market, just the area thought to have the highest growth. Perth is still afordable, but climbing. Like Scotaland, affordable, but climbing.

Tuesday, September 12, 2006 11:20PM Report Comment
 

3. Ashwina said...

I agree, although Sydney's not looking to crash hot, places like Perth are still very much on the rise, 30% overall this year.

Wednesday, September 13, 2006 01:17AM Report Comment
 

4. Geed said...

Lets not get stupid. The housing market has not crashed in australia, this is a specific suburb in a specific city. Sydney is by no means a true representation of the Australian market as a whole. Some areas have had price reductions in Australia but others hold steady, especially inner city suburbs. The massive 20% / annum gains in value have long gone but they are yet to be reversed. Heres hoping though.

Wednesday, September 13, 2006 03:33AM Report Comment
 

5. uncle chris said...

My brothers having trouble selling in the suburbs of Melbourne, even though he's put his house on the market for what he payed for it for 3 years ago. He says the market is flat and very few people have even come to view in the past 8 months.

Wednesday, September 13, 2006 08:37AM Report Comment
 

6. Sam. said...

hang on, a milkman buying a $350,000 house. wow, they must love they're milk there.

Wednesday, September 13, 2006 10:18AM Report Comment
 

7. Geed said...

UC

This may well be true. I currently rent in an inner city suburb in Melbourne, very close to transport, 24hr shopping, the central business district and the beach. The area is truly a great location. The local property market is still healthy; houses are selling at auction rather than being passed through, although prices have been relatively flat over the last 12 months. With this observation in hand it would seem highly likely that outer suburbs may well be struggling considering a highly sought after area remains flat in value. Interest rates have gone up % in 12 months and this is going to effect lower income families that generally live in the outer suburbs. Where does your brother reside?

My point is this, reporting on localised falls suggesting a HPC is sensationalist; much in the same way VI parties (Rightmove etc) use the media to spew out prejudiced, biased information that backs their course. On reflection, keep it up fight fire with fire!!

What I do find interesting are real examples as this article shows as long as they are not taken out of context. People are losing on property, HELLO young prospective overstretched FTBs are you listening!!!!! I would love to see some more examples from the current US property slide.
and

Wednesday, September 13, 2006 11:14AM Report Comment
 

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