PROPERTY pundits are labelling it a buyer's market. Clearance rates are low, the glut of properties for sale shows little sign of abating and prices are now negotiable.Select Clich�s from the Article
Even the market's most bullish supporters are bending before signs of softer conditions.
SQM Research group says the number of homes on the market in April doubled compared with the same period a year ago.
And SQM director Louis Christopher says: "Melbourne is now experiencing a massive oversupply of real estate."
"If this continues into the next quarter, then we are likely to see considerable price falls over and above our existing forecast."
- "It's definitely a buyer's market" - Richard Wakelin, director of Wakelin Property Advisory
- "This is a really good time for people to be trading up" - Richard Wakelin, director of Wakelin Property Advisory
- "Buyers should be sitting back and watching for opportunities, looking for properties that have been passed in on the weekend" - Mark Armstrong, from Armstrong Property Planning
- Century 21 director Charles Tarbey suggests buyers focus on the $400,000 to $600,000 range in coastal and tourist properties.
Alternative Mish Suggestions
- Trading up now will greatly increase losses
- Tourist properties will be especially hard hit
- Now is a poor time to buy in general
- Wait 5 years, then see what prices are
- In the meantime, rent
Comment to Brisbane Bear: You have only just begun to see Clich�s. For reasons why, please see Economic Bust in Australia:Near-Record Corporate Bankruptcies, Employment Drops Unexpectedly; Rise in Bad Home Loans;Record Low Property Transactions
Australia's bust has just started. Expect a 5-year decline minimum. As a point of reference, the US housing bust will be 6 years old this summer.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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