MELBOURNE:- The worst fears of real estate agents and property vendors has arrived: the orderly sale of property has broken down. A twenty year uptrend made Australian real estate ‘most severely unaffordable’ and a Ponzi scheme propelled by consumer debt. Prosper says prices are now in free-fall.
“Anyone buying at current prices is a damn fool,” Prosper Australia campaign manager David Collyer said today. “The sheer weight of property available will drive prices down as must-sell vendors discount and discount again.
Auction clearance rates across the nation have fallen below 50 per cent.
“Auctions are left dangling at unrealistic vendor bids. How can a seller offer to buy their own property and expect others to compete with them? This is madness.
Stale stock – properties offered but unsold for over sixty days – is piling up.
“The SQM Research data is crystal clear. Our survey of postcodes 3000-3207 show unsold stock blowing out from 19,700 to 26,000 properties in the last two months alone.
“We particularly warn against buying in Point Cook 3030, where stale stock has risen from 1634 to 2319 houses in that time. Only 564 Point Cook houses sold in all last year. The area is in profound oversupply.