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House prices cut for cash

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  • House prices cut for cash

    From Stuff, 12/5/08 Bold highlighting is mine.

    Desperate vendors are offering discounted cash prices to sell their houses as the property market continues to weaken.

    Quotable Value statistics published today show annual increases in property values dropped to 4.9 per cent in April, compared with 6.5 per cent in March, and continue a trend of rapidly dropping growth.

    QV has warned that property growth will continue to slide and will probably show declining values in coming months.

    It comes after Real Estate Institute figures last month showed house sales falling to their lowest level in 17 years. The volume of sales had fallen from 10,989 in March 2007 to just 5129 in March this year.

    The fall has left real estate agents with a mounting pile of properties, as the standoff grows between vendors still seeking last year's prices and buyers holding out for bargains.

    That has spurred agencies to try new marketing tactics. Remax Leaders is advertising homes with separate cash and conditional prices. The cash price is between $20,000 and $40,000 lower than the conditional price, and is in exchange for a quick, clean sale without conditions.

    Many properties are being advertised well below their rating valuations, prompting some agents to warn that rateable values are too inflated for the current market.

    Wellington couple Roger and Anita Winkels are offering a cash price for their Miramar home at $60,000 below its rateable value of $610,000 after six weeks on the market without a bite.

    The average time it took to sell a house between January and March in Wellington's main suburbs was 42 days, compared with 29 days a year ago, Real Estate Institute figures show. Mt Victoria, once a market hot spot, has gone from 22 days between January and March last year to 52 days.

    Wellington's central city seems to be hardest hit in the region, going from an average of 38 days in 2007 to 64 days. Commentators believe this is because of the high number of apartments, which have taken the biggest fall in value and buyer interest.

    Wellington consultancy Infometrics said some apartment owners had incurred significant losses. While Wellington had not experienced the same knock as Auckland, where small, "shoebox" flats had dented buyer confidence, it appeared some apartments were overvalued, managing director Gareth Kiernan said.

    The entire Wellington market had just 603 sales in March, compared with 1251 the year before.

    Harcourts Team Wellington managing director Marty Scott said prices were holding but sales had dried up. "It's a very challenging market. The buyers are having their day in the sun."
    Patience is a virtue.

  • #2
    Spot the obvious flaw in this statement!

    Harcourts Team Wellington managing director Marty Scott said prices were holding but sales had dried up.


    • #3
      I don't buy it , in any market there is always someone willing to take a lower offer for cash


      • #4
        Yeah right Cube, well pointed out.

        It's a bit like saying my car is worth $50,000 but no one would pay that.

        Squadly dinky do!