SD on 21/8/2006 at 22:24
Quote Posted by Renegen
There's less buyers as interest rates and prices are high and that obviously hurts the sellers too..
Riiight. But you see, if prices were too high, they'd fall. And they aren't, they're still rising.
Quote:
And to complicate things further new home constructions are still very strong... to make that sale even more difficult.
Even with all the new houses being built, there's still a massive shortage of housing stock. That's why prices are still high, and why people are still prepared to pay those prices. Put it this way - if you want to sell a house, you shouldn't have too much trouble doing so.
Scots Taffer on 21/8/2006 at 23:45
Quote Posted by Renegen
There's less buyers as interest rates and prices are high and that obviously hurts the sellers too..
And to complicate things further new home constructions are still very strong... to make that sale even more difficult.
That's incorrect. Higher interest rates make sellers lose confidence because their prices are now more expensive without them having exerted any pricing pressures whatsoever and if you can afford the right size of mortgage for the market, buyers can become very confident. I'll give you a brief example.
2 months ago when I started looking at houses, every inspection time was packed and offers were flying left, right and centre. The prices were post-boom times but still pretty high, and these houses weren't anything special. Regular houses in regular areas - just at a high watermark in terms of mortgage.
This weekend just past, I visited a house that's been available in a prestigious area for a few weeks - since the recent interest rate hike, they've had to drop their asking price $30k just to get interest, which is a commonality across the market at the moment. Similarly, I suggested significantly lower than the asking price and by the end of the inspection period only five couples had looked around, some expressing mild interest, no offers put down, the agent was keen to take any price to the sellers - even reduced bids. This is especially so since there is another interest rate rise on the horizon. Yes, this makes the mortgage more expensive but if you can bear the brunt and don't bite off more than you can chew initially, you shouldn't have any worries.
OnionBob on 21/8/2006 at 23:47
buuse'd
Ko0K on 22/8/2006 at 03:07
Ever see signs that say "For Sale by Owner"? The sellers lose money in the process, too, which adds up if you realize that everyone else involved isn't doing what they do for free. I happened to be one of those 'surveyors' that walk onsite and provide evaluations regarding foundation and slope stability issues. I'm guessing that the property you were looking at wasn't located on hillside, in which case there isn't really too much to discuss in the first place. If the guy did what he was supposed to do, at least you'd have learned what to look for next time.
Renegen on 22/8/2006 at 04:20
Taff, we've at least established that it's not good for the sellers like dvrabel, but isn't the reduction in prices for the sellers due because at the present prices they'd be less buyers? The interest rates do make it more expensive for the buyers and they will pull out if prices don't change. The discount would also typically be less than the additional costs of higher rates and the money concious buyers would stop their purchases. Higher rates could also bring other considerations, such as not buying a house if these rates could benefit their retirement money, or if higher rates are indicative of a slowing economy and having a mortgage could be risky. If the rates were floating then it could benefit the buyers if the sellers gave them a discount, a realtor's got to eat.
STD, it's not that simple, sometimes you have an over heated market that's out of wack.
Scots Taffer on 22/8/2006 at 04:37
I'm jumping up and down right now! I just saw a fucking awesome property on my lunchbreak, it's got everything - character home, wooden floors, 3 bedrooms, good yard space for the baby, close to a train line (5 min walk), AND it's already raised and partly built under, AND it's got native plants and shrubberies that are low maintenance and very pretty, AND it's got a pool!
Freakingaaaaaaaweeeeeesooooooooooommmmmmmmmmmmme!
oh AND it's freaking cheaper than I expected
omg if someone bids before I get a chance to view with my wife I WILL HUNT THEM DOWN AND KILLS THEM >:I
PigLick on 22/8/2006 at 06:58
haha domesticity itt. Seriously though, the housing market in australia has gone crazy, I bought my current house around 6 years ago for $109,000, now its been valued at around the 360k mark! Its a double-edged sword though really, as I would not be able to afford to buy another house at current prices.
Scots Taffer on 22/8/2006 at 07:26
ah fuck...
things go badly :(
Convict on 22/8/2006 at 11:19
Cute dog! I'm a sucker for dogs unless they are the horrible killer dog breeds..
Gorgonseye on 22/8/2006 at 14:58
What I want to know is......how the hell did he lose his eye? Scuffle from previous owners, birth defect, what?
