Sydney Today, March 3th, Australia Eastern Time Super Saturday is coming soon, and there are signs that market demand has been affected.
Although the stock price is rising, the previous results indicate that the rise of market demand is hindered. The Melbourne auction market faced one of the two major challenges to test its market for the first time the day before yesterday. According to data collected by the Real Estate Institute of Victoria, the clearance rate of 701 auctions was 61%. The auction results for another 74 plans to be sold have not yet been announced.
The hot spot of market discussion this week is a new report that estimates the number of Melbourne property owners who theoretically will be insolvent. RP Data's report shows that 3.5% of properties in the city are worth less than their purchase price. Most of them—about 75%—were bought within 5 years. Looking at an indicator reflecting the impact of the economic downturn on housing prices, three months ago, in September 2011, only 9% of properties in Melbourne were included. However, it is not all bad news. Due to the long holding period and the previous increase in house prices, about 1.9% of Melbourne's properties are more than twice the current value of their purchase.
It is worth mentioning that this report is controversial among many real estate observers, because some critics questioned its statistical methods. The report did not take into account factors such as mortgage loans, and it only calculated "book value". loss". The real financial loss will only occur when the property is sold. RP Data's report knows that it is not recommended that those property owners, if they want to obtain a substantial increase in their assets, they must stabilize now and hold the property for longer than before.
At the same time, Market Wrap has found that more and more anecdotal reports have recently shown that offering lower prices than normal has become the cause of disputes in the auction market. Quotes that the public, frustrated bidders, buyers’ consultants, and real estate agents feel are untrue are increasingly becoming a tactic used to attract others during periods of mediocre market demand. The most common complaints include expressing dissatisfaction with the auction market. The set reserve price is either hundreds of thousands or tens of thousands, which is higher than the usual sales price.
The current Victorian law stipulates that sellers have full right to set their desired level as the reserve price, regardless of the bidding price of the property at auction. They can change their reservation price at any time, even at the auction site. Since the buyer’s broker does not know the seller’s reserve price in advance, the bid price at auction only needs to be based on the buyer’s price based on market conditions and competition.
Although such regulations are unfair, they have been going on for many years. The Baillieu government has the right to modify it, so complaints about the effectiveness of this system can only be modified if they are reported to the Minister for Consumer Affairs. (Ivy)