Auctions fall despite grant boost
Oct 20th 2008, 9:28 am
#16
Joined: Jun 2006
Posts: 4,555
Re: Auctions fall despite grant boost
From what I've seen it depends on the auction results that are reported. I have seen properties sold a couple of weeks prior to the auction included in the auction results listings and also properties that did not sell at auction not included in the listing results. Personally I don't trust the auction clearance figures at all as I know the areas I watch (Sydney) sometimes have 5 auctions on a Saturday but come Sunday only the 1 that was sold is actually on the listing for the clearance rate calculations.
Right now demand is still limited as those who applied after the capital maket freeze probably have not got their finance in order. The big question is whether they can get enough capital as the banks now have a vastly different lending criteria. They now even value properties and lend on that criteria. How novel.
My fear is that the government gurantees will bring back lax lending that got us in the poo in the first place.
Oct 20th 2008, 11:22 am
#17
Has left the building
Joined: Mar 2007
Posts: 4,079
Re: Auctions fall despite grant boost
The real estate industry provides the results. My experiences of the industry are that it is full of frauds. The recent head of a Victorian body was booted out because he had not been paying his contractors. The press are lazy and just take any bit of opinion flying their way whether it be the real estate lobby or a mortgage company. Fairfax owns Domain so The Age and Sydney Morning Herald do their bit to pump it up a bit more. News Limited has interests in Realestate.com.au and
Right now demand is still limited as those who applied after the capital maket freeze probably have not got their finance in order. The big question is whether they can get enough capital as the banks now have a vastly different lending criteria. They now even value properties and lend on that criteria. How novel.
My fear is that the government gurantees will bring back lax lending that got us in the poo in the first place.
Right now demand is still limited as those who applied after the capital maket freeze probably have not got their finance in order. The big question is whether they can get enough capital as the banks now have a vastly different lending criteria. They now even value properties and lend on that criteria. How novel.
My fear is that the government gurantees will bring back lax lending that got us in the poo in the first place.
Half block of vacant land advertised as $450k+ (first agent dealing with me said he would take $450k). - She went on holiday for 3 weeks so....
Second agent in office (I called another time for further details) informs me that the vendor has already several offers with one at $510k. Tell him I would prefer to await auction, but would like evidence to support this $510k claim - was told they were not legally allowed to show this???.
Auction - no bids except vendor - $450k, $470k, $490k passed in - i even had a phone call the night before telling me the property might get passed in and that I should remember the highest bidder had sole rights for further negotiation????
5 weeks later I called and whoa behold the other buyers have disappeared and no offers stand??? I put an offer in....
$250k might hear back tommorrow
it was conditional on 24 hour acceptance.Ps its only 325sqm of land
Oct 20th 2008, 12:26 pm
#18
BE Forum Addict
Joined: Oct 2005
Location: Perth
Posts: 3,453
Re: Auctions fall despite grant boost
Recent dealings with local Melbourne agent:
Half block of vacant land advertised as $450k+ (first agent dealing with me said he would take $450k). - She went on holiday for 3 weeks so....
Second agent in office (I called another time for further details) informs me that the vendor has already several offers with one at $510k. Tell him I would prefer to await auction, but would like evidence to support this $510k claim - was told they were not legally allowed to show this???.
Auction - no bids except vendor - $450k, $470k, $490k passed in - i even had a phone call the night before telling me the property might get passed in and that I should remember the highest bidder had sole rights for further negotiation????
5 weeks later I called and whoa behold the other buyers have disappeared and no offers stand??? I put an offer in....
$250k might hear back tommorrow it was conditional on 24 hour acceptance.
Ps its only 325sqm of land
Half block of vacant land advertised as $450k+ (first agent dealing with me said he would take $450k). - She went on holiday for 3 weeks so....
Second agent in office (I called another time for further details) informs me that the vendor has already several offers with one at $510k. Tell him I would prefer to await auction, but would like evidence to support this $510k claim - was told they were not legally allowed to show this???.
Auction - no bids except vendor - $450k, $470k, $490k passed in - i even had a phone call the night before telling me the property might get passed in and that I should remember the highest bidder had sole rights for further negotiation????
5 weeks later I called and whoa behold the other buyers have disappeared and no offers stand??? I put an offer in....
$250k might hear back tommorrow
it was conditional on 24 hour acceptance.Ps its only 325sqm of land
Oct 20th 2008, 2:11 pm
#19
_
Joined: Aug 2005
Location: Perth (ex Oxford)
Posts: 411
Re: Auctions fall despite grant boost
MELBOURNE'S property market yesterday suffered its worst day in at least four years, despite yesterday being the first auction day when prospective buyers had access to the increased first-home buyers grant.
http://www.theage.com.au/national/au...1018-53nk.html
That worked Kevin...
http://www.theage.com.au/national/au...1018-53nk.html
That worked Kevin...
Read some other newspapers (West Australian) and it's explained that the demographic of people who buy at auctions are typically not first-time-home-buyers. There never was an expectation that auctions would suddenly take off after the grant was increased. If it does have an effect at that level it will take a while to filter up.
Some poor sensationalist reporting if there ever was any.
Oct 20th 2008, 8:53 pm
#20
Joined: Jun 2006
Posts: 4,555
Re: Auctions fall despite grant boost
Recent dealings with local Melbourne agent:
Half block of vacant land advertised as $450k+ (first agent dealing with me said he would take $450k). - She went on holiday for 3 weeks so....
Second agent in office (I called another time for further details) informs me that the vendor has already several offers with one at $510k. Tell him I would prefer to await auction, but would like evidence to support this $510k claim - was told they were not legally allowed to show this???.
Auction - no bids except vendor - $450k, $470k, $490k passed in - i even had a phone call the night before telling me the property might get passed in and that I should remember the highest bidder had sole rights for further negotiation????
5 weeks later I called and whoa behold the other buyers have disappeared and no offers stand??? I put an offer in....
$250k might hear back tommorrow it was conditional on 24 hour acceptance.
Ps its only 325sqm of land
Half block of vacant land advertised as $450k+ (first agent dealing with me said he would take $450k). - She went on holiday for 3 weeks so....
Second agent in office (I called another time for further details) informs me that the vendor has already several offers with one at $510k. Tell him I would prefer to await auction, but would like evidence to support this $510k claim - was told they were not legally allowed to show this???.
Auction - no bids except vendor - $450k, $470k, $490k passed in - i even had a phone call the night before telling me the property might get passed in and that I should remember the highest bidder had sole rights for further negotiation????
5 weeks later I called and whoa behold the other buyers have disappeared and no offers stand??? I put an offer in....
$250k might hear back tommorrow
it was conditional on 24 hour acceptance.Ps its only 325sqm of land
Oct 20th 2008, 10:18 pm
#21
BE Forum Addict
Joined: Jul 2008
Location: Westernport Mornington Peninsula
Posts: 1,761
Re: Auctions fall despite grant boost
It also said in the papers that a lot of vendors have removed their properties from market and are reinstated them with an increased selling price because of the grant.
I know a house down the road was 645 and now its 685k
I know a house down the road was 645 and now its 685k
