House prices to keep rising for years

[robots]

hello,

i have got my finger on the pulse for todays auction results, checking REIV every 5 min for the results

hopefully Enzo will get them up quick smart, he is a nice chap Enzo dresses well and returns his email, the sign of a true professional,

thankyou
robots

 

[robots]

hello,

here we go Beej:

http://www.reiv.com.au/home/inside.asp?ID=162&nav1=652&nav2=162#S

72% today which is a fantastic effort, units & apartments up a bit more for the day

just like to thank Enzo for getting these results up prompt, top effort man

just a normal run of the mill market by the look of it, keep paying the P & I and presto living large, who says people arent paying off debt?

thankyou
robots

 

[Beej]

hello,

here we go Beej:

http://www.reiv.com.au/home/inside.asp?ID=162&nav1=652&nav2=162#S

72% today which is a fantastic effort, units & apartments up a bit more for the day

just like to thank Enzo for getting these results up prompt, top effort man

just a normal run of the mill market by the look of it, keep paying the P & I and presto living large, who says people arent paying off debt?

thankyou
robots

Great result for Melbourne there.

And Sydney results for today can be found here: http://www.homepriceguide.com.au/saturday_auction_results/sydney_domain.pdf

Sydney results show a 66% clearance rate (4th weekend in a row with 60%+ clearance now and on reasonable sales volume again like last weekend). 183 properties sold out of 251 auctions (+ 21 withdrawn). Median price at for this weekends auctions $675k - which is a fair bit higher than the past 2 weekends, indicating that more of the mid range priced properties are now starting to sell (as expected). There's a quite a few $1M-$2M sales in there as well, plus a few $2M+ as well, Eg:

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007592994 ($2.02M) and http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007567225 ($2.715M)

So it would seem that higher activity from last quarter in lower price bands is now starting to flow through the market, as expected (and predicted). I predict we will see this reflected in the price stats for Q1 when they come out.

Cheers,

Beej

 

[gfresh]

Brisbane, 32% - going off!

 

[Bill M]

hello,

http://www.theage.com.au/national/hiring-not-firing-some-good-news-in-tough-times-20090227-8kdr.html

look out gloomheads, Aldi banging a few thousand as well so in a matter of days UP 18000

paradise, give it 5min for a gloomhead reply

thankyou
robots

Well it didn't take too long for a "gloomhead" reply. I opened up my local rag today and there was 5 pages of jobs in it. Had everything from professional, health, transport, apprenticeships and labouring jobs, all there for those that want to work. Went for my usual walk down the beaches again the coffee shops were full and the car parks all full. It seems to me like everything is as usual, nothing to worry about.

 

[MrBurns]

LOL - or for the same economic reasons? or for the same housing market factors (mega high defaults, sub prime etc)?. Gee - anyone would think we actually do have our own economy that can and does often do it's own thing for it's own reasons - which anyone investing in said economy would do well to understand!

Beej

There are factors holding us up a little at present but we will not defy gravity for much longer , if I thought we could I'd be out there spending now.

 

[moXJO]

Well it didn't take too long for a "gloomhead" reply. I opened up my local rag today and there was 5 pages of jobs in it. Had everything from professional, health, transport, apprenticeships and labouring jobs, all there for those that want to work. Went for my usual walk down the beaches again the coffee shops were full and the car parks all full. It seems to me like everything is as usual, nothing to worry about.

This is what I am seeing as well (despite being a bit of a gloomer atm). Not too sure what is going on
But people seem to be spending. Construction has picked up as well and I'm busy again. People seem to be confident with the low rates on offer.

 

[Trevor_S]

Indeed I just put in an offer for $650,000 (cash) on a 3x2 unit, where the vendor wants $894,000... we'll see. I own 1 IP and one PPOR currently (both debt free), this would be a new PPOR. I doubt they will take it but you never know.

Wow... I just got an email, saying there are two people who own the place (I knew that), one is here locally and will accept it, if I make a formal contractual offer (I had just emailed the RE Agent), owner 1 is sure owner 2 will accept it. Have I just bought the local median down for units ? I must admit I was 1. surprised with the speed of the reply and 2. the (apparent) acceptance, I had been led to believe a couple weeks ago that I would be laughed at. It has been for sale for a couple months (new penthouse unit, just completed, in a new complex) I (we) like the location and the aspect.

 

[Bill M]

Wow... I just got an email, saying there are two people who own the place (I knew that), one is here locally and will accept it, if I make a formal contractual offer (I had just emailed the RE Agent), owner 1 is sure owner 2 will accept it. Have I just bought the local median down for units ? I must admit I was 1. surprised with the speed of the reply and 2. the (apparent) acceptance, I had been led to believe a couple weeks ago that I would be laughed at. It has been for sale for a couple months (new penthouse unit, just completed, in a new complex) I (we) like the location and the aspect.

Do I take it you won't be moving to Tassie now? A bargains a bargain, sounds good. I don't understand "a 3x2 unit", what is that exactly?

 

[MrBurns]

Do I take it you won't be moving to Tassie now? A bargains a bargain, sounds good. I don't understand "a 3x2 unit", what is that exactly?

3 x2 bedroom units

 

[explod]

This is what I am seeing as well (despite being a bit of a gloomer atm). Not too sure what is going on
But people seem to be spending. Construction has picked up as well and I'm busy again. People seem to be confident with the low rates on offer.

First, no one wants to believe things are going pear shaped. Two, Glen Stevens said that it is going to come good and; Three, in our living memory it has always been good, so it must be.

The businesses going to the wall tells me not to buy it. I will stick to gloom till I see some confirmed sunshine thanks.

 

[MrBurns]

I'm not gloomy for the sake of it but I've seen people go broke being overly optimistic so I tend to only dive in if I'm fairly sure I already know the outcome.
With whats happening round the globe you would be a fool to risk too much on anything right now.

 

[knocker]

Wow... I just got an email, saying there are two people who own the place (I knew that), one is here locally and will accept it, if I make a formal contractual offer (I had just emailed the RE Agent), owner 1 is sure owner 2 will accept it. Have I just bought the local median down for units ? I must admit I was 1. surprised with the speed of the reply and 2. the (apparent) acceptance, I had been led to believe a couple weeks ago that I would be laughed at. It has been for sale for a couple months (new penthouse unit, just completed, in a new complex) I (we) like the location and the aspect.

Good stuff mate. Have a look in Cairns also, lots of goodies up for grabs there. But frankly, wait another year and make an offer for 400k ;-)

 

[Beej]

Brisbane, 32% - going off!

Yea - not so good. One comment though - does Brizzy traditionally have much of an auction driven market? The volumes always seem really low whether the clearance rate is low or high?

Cheers,

Beej

 

[Trevor_S]

Do I take it you won't be moving to Tassie now?

Very much still on the cards This was originally an interesting exercise and I was mightily surprised it was accepted.

A bargains a bargain, sounds good. I don't understand "a 3x2 unit", what is that exactly?

sorry, 3 bedroom and a study (2 bathroom) and that's the point isn't it ... is it a "bargain" ? if they have accepted that price, haven't I set the new floor in pricing, everyone else interested will presumably see what I bought for (if I go ahead) and want a lower price on the other ones still available and if they get them for less then me, then I paid "top dollar".

What say you ? WBC to cut dividends along with ANZ ? (most of the banking part of my portfolio is in WBC)

 

[Beej]

sorry, 3 bedroom and a study (2 bathroom) and that's the point isn't it ... is it a "bargain" ? if they have accepted that price, haven't I set the new floor in pricing, everyone else interested will presumably see what I bought for (if I go ahead) and want a lower price on the other ones still available and if they get them for less then me, then I paid "top dollar".

What's been driving prices up to now? Sounds like a lot of these places are on the market? Any others sold? Quite a few desperate sellers around? The thing is, for $600-$800k you could buy a pretty decent 3/2 apartment in Sydney, on the lower north shore or eastern beach side suburbs (Bondi, Coogee etc). So to me, for Townsville, that type of money seems really high, and therefore possibly very risky, as how many people are around to drive/sustain prices at that level for that type of property? In Sydney the demand is clear and constant for say Bondi or Coogee - will that be the case in FNQ at that price level?

Just my thoughts...

Beej

 

[singlefished]

Yea - not so good. One comment though - does Brizzy traditionally have much of an auction driven market? The volumes always seem really low whether the clearance rate is low or high?

Cheers,

Beej

Couldn't find much for historic rates in Brizzy.... the stuff on the RBA website only really references historic Melbourne & Sydney.

Found this though from mid 2003 :

http://sites.ninemsn.com.au/minisite/property/research/buyingproperty/story12.asp
Brisbane's clearance rate was also unchanged, with a rate of 61 percent, though volumes had their third monthly increase in the row with 197 properties auctioned, which is up from 155 recorded in the previous month.

All over the news this evening was how unemployment in QLD is currently the worst in Australia - up 18% from the previous quater (if i remember correctly) - and how it may impact the coming state election....

 

[knocker]

Couldn't find much for historic rates in Brizzy.... the stuff on the RBA website only really references historic Melbourne & Sydney.

Found this though from mid 2003 :


All over the news this evening was how unemployment in QLD is currently the worst in Australia - up 18% from the previous quater (if i remember correctly) - and how it may impact the coming state election....

Go anna

 

[Bill M]

sorry, 3 bedroom and a study (2 bathroom) and that's the point isn't it ... is it a "bargain" ? if they have accepted that price, haven't I set the new floor in pricing, everyone else interested will presumably see what I bought for (if I go ahead) and want a lower price on the other ones still available and if they get them for less then me, then I paid "top dollar".

Trevor I don't know the Townsville market, I just can't make a comment as I don't know. Would there be many Storm Clients that have to off load their properties, too much on the market? Depends what's going on up there. Beej made an interesting comment about what you can get for that sort of money down here. To me a house up there for that price seems way expensive. Just as a comparison my mate bought a 2 story 4 bedroom brick home on the Central Coast for 335K.

What say you ? WBC to cut dividends along with ANZ ? (most of the banking part of my portfolio is in WBC)

It was expected unfortunately, I have no regrets in purchasing my rights issues in WBC @ $15.22. I will hold this stock for many years to come. Also funny thing, ANZ shares jumped on the news

 

[numbercruncher]

Isnt knife catching such a fun sport ?