Guest Guest5035

House prices going down

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    Guest Guest5035

    Anyone noticed how the Saturday advertiser housing pullout is getting more and more thicker? There are definately more houses going on the market, so as they say supply and demand, so by rights the prices will drop, some are way way overpriced anyway, owners trying to get back theire money as they paid over the odds in the first place.

     

    Stevo

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    Definitely the houses in the middle ranges seem to be dropping. By that I mean those between say $400k and $800k.

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    Guest guest4504

    WOOHOOOOOOO. Good news for many, sorry for those who will want to sell. Thanks to the OP for the up.

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    Guest Guest5035

    Theres some apartments at Newport quays that are $300k below original asking price, apartments at West Lakes also the same, houses seem to be re advertised at a lower price.

     

    Stevo

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    Guest Nick11

    Some people are asking silly prices for their houses. The house at the back of us has been on the market since September but is about $100,000 over priced. It has now come down to a more sensible level and folk are competing now to buy it.

    Realistically priced houses will always sell.

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    Guest wijaya

    in my neighbourhood, saw a house that has been in the market since before christmas. They auctioned it, with the initial price of 1.25 million. But did not sell, then dropped the price to 1.9, still not selling and now POA (price on application). Now they have open house nearly everyweek, seemed no luck so far. It actually as beautiful house, only walking distance away to a private school and a very good public school.

    regards

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    Guest colette

    I totally agree about people overpricing their houses. Our house in the eastern suburbs has been on the market for one week and because we have priced it reasonably we have had considerable interest. We only bought it 18 months ago but have decided to sell up and go back to the UK. We are not greedy people so I can't understand why anyone would try to sell their houses at auction when you have tons of houses on the market and relatively few buyers. We are hoping to sell but are in no hurry and will reduce the price to sell at a loss if necessary in order to catch the favourable exchange rate. Wish us luck.

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    There have been many predictions that house prices must fall, but this is usually met with the reply 'House prices never fall in Adelaide'.

     

    Prices are certainly faltering at the moment, which gives me hope. We went to the first open of a newly built house at the back of us (just to be nosey!) and we were the only ones there (and we were there the whole time as the agent recognised my husband from years back and they ended up having a long chat!). The asking price has now dropped $50k (from $780k-$840k). It is a 2 storey house built on half a block, and tbh, even if I could afford it I wouldn't want to buy it.

     

    My husband went along to an auction of a townhouse last weekend, and apart from the auctioneers and some bloke walking past with his dog, he was the only person who turned up! Needless to say it didn't sell. A new build on the Esplanade at Grange has been on the market for 3 months and the price has dropped from $2m-$2.2m down to $1.85m-$1.95m. There are loads of expensive houses for sale near the beach and they are not selling at all. Another in Henley Beach was advertised at $1.7m-$1.87m and is now down to $1.45m-$1.59m. If you want to live or build on the beach in Grange/Henley Beach or Tennyson, you have your choice of 18 properties, all over a million dollars! Some of these have been up for sale for months and months.

     

    Properties are still selling, but only if the price is right. I have many examples: one home originally advertised at $585k-$620k sold many weeks later for $502k. Another at $680k-$740k sold for $645, one at $520k sold for $450k, another for $1.3m-$1.4m sold for $1.21m.

     

    A real estate agent at an open the other day said the market was the flattest he had seen it.

     

    If looking to buy, it's a buyer's market.

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    Guest Nick11

    Some houses are being put on the market at stupidly over inflated prices!!!

    The day of the cashed up mortgage free pom has long gone!!!!

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    Guest kangomik

    It's a funny market isn't it. Yes the cahsed up poms stop, but the asians are here and lots of them, whats the difference? The asians haggle, cashed up poms pay extra!

    Therer is a detached 2 bed home round the corner, up at 340, went for about 290. Which i think is a big drop. A 5 bed on the corner knocked off 90 K and was on the market for 5 months until it went.

    I know a man darn sarf in mexico, and it went first viewing, within the asking range.

     

    Nice properties priced correctly will always sell.

    People who listen to estate agents commission talk will hold on for a while, and possibly miss the house they want.

     

    The market is frozen because of the mortgage rate IMO, it's not a buyers market yet, but it will be after the next rate rise or two. Those investors (renters) who paid to much are going to cut everything to try and get out of the market.

     

    You do see a lot of houses going on with different agents, at a reduced price. Reminds me of blighty just before we left.

     

    The war between the banks is only just begining, will be fun in the next few months.

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    Guest Guest5035

    . Reminds me of blighty just before we left.

    .

     

    yep its on the way.

     

    stevo

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    Guest Bluenose

    I've noticed that house prices have settled a little bit over the last few months...I wouldn't go expecting massive drops in price for the average home but I do think the upper market area was over priced hence the reason why they're not selling. Also, people are still a little edgey about the financial climate even though Australia were very lucky and faired pretty well during the GFC but the rest of the world is still in some serious, serious poop. I feel that we are a bit oblivous to the worlds problems....Greece and Ireland already bankrupt and with Spain & Portugal (to name just two) on a knife edge....it's a worry!

     

    To be fair I think it's the real estate agents that set unreal expectations on what the house is really worth. Most people will get maybe 2-3 different agents in to value their home. The majority of people (not all) will take the person who values their home the highest. I'm sure the agent doesn't care if it's over priced and doesn't sell straight away as they now have the listing and have made a few bucks from advertising and opens etc....They'll then suggest to drop the price, with excuses about the market being quiet etc etc...

     

    I do think there's some bargains to be had....if your willing to take a gamble and not looking for short term gains.

     

    Cheers

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    Guest shella_n

    my friend is in the process of buying a 4 bed in mcalren vale for $380 - apparently it was originally on the market for $440-$460

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    How about you offer to rent her half off her Matt? :biglaugh: Find out the going rental rate for the property, pay her half each month into an account used to pay the mortgage...

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    Guest mark&rachel

    shella, did they offer that much below or is that how much it dropped by?

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    Guest shella_n
    shella, did they offer that much below or is that how much it dropped by?

     

    it was on the market for a few months before xmas for $440 - $460 and nothing happened. Took it off market and put it on again for $380 -$390 - my friend offered $380 (even though as far as she knew the house had only just come on the market and it was a starting point for them) and the offer was accepted straight away.

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    Something that we have noticed is the price of land going up, representing a much higher percentage of the total house and land price than it has in the past.

     

    In fact, in a few years, I reckon the land our house is on will be worth more if we knock the house down first before selling! It's pretty close already.....

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    Guest BurgessFamily
    Something that we have noticed is the price of land going up, representing a much higher percentage of the total house and land price than it has in the past.

     

    In fact, in a few years, I reckon the land our house is on will be worth more if we knock the house down first before selling! It's pretty close already.....

     

    If they can build 2, 3 or more house on the same piece of land, then of course it will be worth far more. It just depend if people are willing to buy houses on ever smaller lots. :P

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    Guest kangomik
    If they can build 2, 3 or more house on the same piece of land, then of course it will be worth far more. It just depend if people are willing to buy houses on ever smaller lots. :P

     

     

    You could be missing a point here, people may want to build one house there, it's down to locality to.

    Not everything is about subdivision.

    There's a cost and a risk to building three dwelling were one used to be, all your money is tied up untill the last one is sold.

     

    The price of land is going up, it's an easy investment, or was. LOL

     

    ANYWAY!!!!!!!!!!!!!!!!!!!!!!

    I notice the tiser came out and combatted this post, with there usual "lets post suburb prices" add on over the weekend. I think this is a very very confusing way to release house price figures. It just does not add up as it only goes on sales through the year.

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    Guest BurgessFamily

    there's gold in them there hills...

     

    The median lot size in the ABS Adelaide Statistical Division has been declining steadily over the last decade. In 2002/03 the median lot size was 525 square metres and

    by 2008/09 it had decreased by 19% to 425 square metres.

     

    In 2002/03 a median size lot of 525 square metres cost $218 per square

    metre to develop, whereas in 2008/09 the median size lot of 425 square metres

    cost $378 per square metre.

     

    The UDIA 2011 State of the Land

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    Guest colette

    We put our house on the market last week and we have had two offers already. It depends on the house and how rationally it is priced.

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    If they can build 2, 3 or more house on the same piece of land, then of course it will be worth far more. It just depend if people are willing to buy houses on ever smaller lots. :P

     

     

    Well, with similarly located/sized blocks to ours for sale for over $400k, it doesn't even need subdivision potential! Was talking to a neighbour at the weekend: the building block used to be maybe 20% of the total cost of building a house, now it's more like 75%. House prices are also being influenced - even 20 years down the line - by who built the property. Look at a bog-standard, off-the-plan type house compared to one built by a "prestige" builder, on the same estate - big difference in price achieved.

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