 |
|||
|
|||
 |
|
 "The property market tide is in ebb. The introduction of new taxes for NSW investors has added additional pressure to an already slowing Sydney property market." - Mark |
| Property slump costs owners |
| By Maurice Dunlevy |
|
May 17, 2004 IT can now take twice as long to sell a home as it did two years ago, with overly optimistic owners holding out in vain for prices that the dwindling numbers of buyers are refusing to pay. Sydney homeowners are experiencing the worst turnaround in fortunes, with the average home sale timeframe blown out to 63 days. At the height of the property boom in early 2002, it took just over a month on average to find a buyer. In the steadier Adelaide market, it now takes on average 2 1/2 months to sell, while in the once booming Brisbane market, the average selling period for a house is now 43 days. Analysts Australian Property Monitors claim their figures, which include sales by auction and private treaty, are further evidence of a tumbling market in which a higher number of houses for sale has coincided with a fall in buyer demand. "There are not enough buyers and the price expectations of vendors are still too high," said Louis Christoper, research director of Australian Property Monitors, publishers of the Home Price Guide. Mr Christoper said that house prices were now falling sharply as prices came off "crazy peaks". Sydney's 63-day average sale period, recorded at the end of March, was 13 days more than Melbourne. In 2002, it required only 35 days to sell a house in Sydney and 33 in Melbourne. Real estate consumer advocate Neil Jenman says the figures confirm that bloated housing markets have burst. "It's property's very own weight-loss program . . . the longer you wait, the more you lose," he said. The auction clearance rates over the weekend showed some positive signs, with Sydney up to 43.6 per cent, still low, but a marked improvement on the 35 per cent recorded on the first Saturday of the month. Melbourne also jumped up to 61 per cent from 55 per cent last week. Hocking Stuart, one of Melbourne's largest real estate groups, claims the market is still holding up, even though houses that are overpriced or have other issues are more difficult to sell. "There's no more 'list it today and sell within two weeks', but 80 per cent of our properties are sold within a week of auction," managing director Greg Hocking told The Australian. But he said an 80 per cent success rate a week after auction meant most sellers could expect to find a buyer within a four to five-week period. Brisbane homes are the fastest-selling in the nation, going in 43 days, but agents are now questioning the longer-term health of the Queensland capital's market, which – anecdotally at least – appears to be headed south. Agents say houses that only months ago were worth $350,000 are likely to sell for between $315,000 and $320,000. Bayside Birkdale agent Andrew Trim said that while prices in his area had not yet fallen, nothing was selling. "People haven't yet caught on to what is going on, but once a month we count every sold sign in the Birkdale-Wellington Point area and, whereas there are normally 50 to 60, there are currently 28," he told The Australian. Victorians Leigh and Katie Ramsay are one couple starting to wonder just how bad the housing market really is at the moment. More than three months, and two agents, after listing their investment property in outer-suburban Seaford, the young couple want a quick sale that will enable them to buy a rural property complete with farm animals and horses. Leigh, a carpenter, and Katie, a strapper and track rider, purchased the Hannah Street investment property a year ago for $188,000. At the time, they had big plans for a much-needed renovation of the half-fibro, half-weatherboard house, but have since decided that selling their home at nearby Frankston – as well as the Seaford property – and escaping to the bush is a better bet. But so far there's only been one potential buyer, and even that deal fell over, despite the Ramsays being prepared to take a $13,000 loss. "I guess we didn't realise how bad the market really was," Ms Ramsay said. Now the property's back on the market for $178,000, which she says is a fair price for a "knockover" house ideal for two-unit redevelopment. Reference: The Australian 
|