One of them went to auction late last year and was not sold. We spoke to the agent before the auction so we roughly knew what price the vendor was expecting. After the failed auction, the property is for sale but the indicative price is 20% higher.
Another one is a terrace which has been sitting on the market for over a year now. Late last year, the vendor cut the asking price by around 20% but still no taker. Yesterday, I noticed that the vendor incresaed the asking price by 10%.
I wonder if these are indications that the vendors are suddenly seeing more potential buyers ? Or maybe they are pushing the asking prices up so they can do a "bargain sale" of 10-15% off and still come out ahead ?
Guess the morale of the story is, as a potential buyer, one really needs to find his/her own data. I feel a bit like Spooky Mulder in the X-Files - Trust no one....Haha.....
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Just got an alert from domain today, as an example, two Inner West (Annandale, Glebe) houses which failed to sell in 2008-Q4 have been reduce by around 6%.
ReplyDeleteNot much but some progress.
Looking forward to more discounts well into 2009 as vendors realise buyers have their debt (bank risk aversion) and income tap (higher unemployment) turned off.
Areas that have recently gone through gentrification such as the Inner West where there is a high reliance on double incomes to meet mortgage repayments will be particularly venerable.
If anyone has any idea about how to short the Sydney property market, please let me know...
ReplyDeleteLooking for the next "Paulson" trade here.