bondipom

http://www.theaustralian.news.com.au...5E2702,00.html

Crash fear amid auction slump
By Peter Shadbolt
May 03, 2004
THE worst weekend for house auctions in more than a decade has brought Sydney, once at the vanguard of the surging property boom, to the brink of collapse.

Nearly two-thirds of the properties put up for auction failed to find buyers, with a dismal adjusted clearance rate of just 35.7 per cent.

If the slump signals the start of a crash, the Howard Government – whose economic success has been underpinned by the housing boom – will come under intense pressure ahead of the federal election.

bondipom

Considering the 2 public holidays the article is a bit alarmist. The move away from auctions maybe another reason.

RichS

But slumping it is - currently the only thing proppoing it up is the plastic smiles of the estate agents.

I heard one say on the weekend "There have been signs that the market is picking up in the last 2 weeks, but at prices lower than last year"...in English "its a slump"

I know of one estate agent listing a 3 bedder in Sydney sout for 630 and the sellers are prepared to accept 580. So interesting stuff.

slump away, you've only got another 20% to go for me to be in the market

bondipom

In a way I hope you are correct but a slump could adversely affect the economy.

walaj

bondi, on the subject of autions, ohh knowledgable one , could you clarify the meaning of the terms used from an auction?


AUSD - Auction Sold - obviously a price has been reached that the seller is happy with
AUSP - Auction Sold Prior - someone offered something too good to be turned down before the auction
AUPI - Auction Passed In - this is the one I am not sure on - seller withdrawn before the aution?
AUHB - Auction Highest Bid - highest bid not acceptable to the seller
AUNB - Auction No Bid - nobody turned up or did not want to pay even a cent

bondipom

AUPI I think is when the bidding does not reach the reserve or the vendor bid is the highest bid. Daftly enough the vendor is allowed a bid and they seem to overvalue their house and ruin the auction with the bid. Not too sure of the technical difference to AUHB.

Auctions are a big con to be avoided. They are great for the agent and the seller in a madly rising market but there are some dodgy practises. Sellers used to get friends and family to bid at their own house to boost the price. This has now been outlawed but I doubt the practise has stopped. I think more houses are now passing in and going to private sale.

walaj

thanks - don't most vendors like to think their home is worth more.

A new thing learnt - did not realise the vendor can bid as well.

Would you go to the lengths to avoid an auction even if the house was everything you needed/wanted?

bondipom

I would go to the auction and use it as a negotiating tool for buying post or prior. During the auction the auctioneers come around with high pressure sales techniques so be prepared and stand your ground.

MikeStanton

If an auction is 'passed in' (ie bidding price doesn't meet or exceed the reserve price), the seller can negotiate with the highest bidder to try and reach an agreed price. I guess if no agreement is reached it becomes an AUHB.