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$10,000 drop in house prices helping buyers

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  • Baby Boomer
    replied
    Auctions not altogether popular

    Why can't agents read the current situation more reliably? Or is that the property market is unstable as vendors and purchasers re-learn what steady ground feels like? Or do we have a different breed of agents working the market now?

    All they have to do is listen to people and find a middle ground, surely its not too hard? They are not driving the market, they are the vehicle.

    Leave a comment:


  • Davo36
    replied
    I agree with this Baby Boomer. So many people sign up for auctions. The only people they serve are agents.

    They have some very simple yet powerful dialogues which they can use with vendors to get them to sign up like:

    • A month ago we took a property to auction and the owner wanted $300,000 but we got $375,000. This really appeals to people's greed. The start thinking "That might happen to us...".
    • All the buyers are cashed up and ready to buy. You'll only be dealing with serious buyers. What they don't say is that it puts a lot of people off.
    • It'll only take 4 or 5 weeks and then you can move on with your life. People are very impatient and want quick fixes, so this appeals a lot.


    They never talk about how they will condition the vendor down, will basically force them to set a low reserve etc. etc.

    Bring back the good old days I reckon, put a damn price on the things!

    Leave a comment:


  • Baby Boomer
    replied
    Originally posted by damage View Post
    Personally I think the buyers are there, but its the sales method that is stopping transactions from happening.
    In my case, my wife and I are looking to buy another home here in AKL, but every property that we are interested in is being sold by auction.
    After 3 cases where we have been outbid, we have given up for now simply because we are spending $500 a go on a builders report and valuation only to really have no idea what it will sell for on the day.
    Selling by auction makes it a sellers market in reality
    Yes, it puts me off too. Also, the three week marketing campaigns leave little time for errors to be sorted out before bidding begins. I'm not sure the people winning the auctions are actually getting value for money in some cases.

    One agent told me that you are either seriously looking and have your finance sorted and your homework done or you are kicking tyres when it comes to auctions. I would not even buy a car at auction let alone a house, it feels like gambling. All property I've seen have drawbacks and weighing these up takes time. Even better is a price on the property which is pretty rare these days.

    Leave a comment:


  • Viking
    replied
    Buyer's market gone
    Sunday, 10, Apr, 2011 9:41AM It is no longer a buyer's market for homes in Auckland. Barfoot and Thompson has revealed the average sale price in the city hit an all-time high during March: $580,000. The number of deals during the month was also up sharply.
    Property consultant Olly Newland says prices are rising partly because of low interest rates, a slow-down in building, and high immigration. He says there are plenty of homes in the two to three million dollar range, but very little for people on a more modest budget.
    The cost of renting a home in Auckland also seems likely to increase in the year ahead. Mr Newland says the demand for reasonably-priced homes will rise, putting more pressure on the market. He says the cost of renting a home will also increase, as rents are very low compared with the value of the properties they are renting.

    Leave a comment:


  • damage
    replied
    Personally I think the buyers are there, but its the sales method that is stopping transactions from happening.
    In my case, my wife and I are looking to buy another home here in AKL, but every property that we are interested in is being sold by auction.
    After 3 cases where we have been outbid, we have given up for now simply because we are spending $500 a go on a builders report and valuation only to really have no idea what it will sell for on the day.
    Selling by auction makes it a sellers market in reality

    Leave a comment:


  • Viking
    replied
    Really, well where are all the buyers then?
    Have not been evident this year. What a load of bollocks these people write.

    Leave a comment:


  • muppet
    started a topic $10,000 drop in house prices helping buyers

    $10,000 drop in house prices helping buyers

    $10,000 drop in house prices helping buyers

    By Anne Gibson
    5:30 AM Tuesday Apr 5, 2011
    The national median house price is $350,000. Photo / Chris Skelton


    House prices have fallen nationally $10,000 in the past three months, and affordability is increasing around the country.
    Massey University's latest home affordability report, out yesterday, showed the national median house price was $350,000.
    Queenstown, Auckland and Wellington are the most expensive places when house prices are matched to average wages and average mortgage interest rates.
    Invercargill, Dunedin and Palmerston North are the most affordable.
    The director of the university's real estate analysis unit, Professor Bob Hargreaves, said that in the three months to February Central Otago Lakes was the least affordable region, followed by Auckland and Wellington.
    Southland retains its place as the most affordable region. Otago is in second place and Manawatu/Wanganui third.
    Nationally, home affordability improved in the quarter by 5.2 per cent.
    Professor Hargreaves said the figures were good news for house buyers as mortgage rates went down and wages increased.
    See more in the Granny
    http://www.nzherald.co.nz/business/n...ectid=10717105
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