Australia headed for Disaster Zone: Home sellers get realistic, mining companies going bust in record
Hangthebankers.com
27 Aug 2012
Real estate agents in Australia who assured everyone for years there was no housing bubble and home prices would only ever go up because there was a “shortage of houses” are now telling everyone who is stuck in a house they cannot afford that they have prices too high.
What this means of course is real estate agents are selling few homes, thus making little in commissions so they need prices to come down. What the agents don’t realize is this is the beginning of a trend and home prices, some drastically reduced already, still have much further to fall.
The Sunshine Coast Daily reports Sellers get realistic with cuts
The prices of some Sunshine Coast properties have been slashed by a million dollars as owners look to shift homes that have been stewing on the market for up to four years.
A Sunshine Beach property that was on the market in 2008 for $2.6 million has been reduced to $1.595 million while a Cooroy property for sale for $3.15 million in 2009 has been discounted $1.155 million.
A list of the top 25 discounted properties from the SQM Research shows prices discounted between 24% and 40%.
The head of SQM Research, Louis Christopher, said the discounting was the result of vendors being forced to correct unrealistic price expectations.
“Many are not willing to accept where the buyers are at. They can’t handle, psychologically, that this is what their property is worth,” he said.
The discounting on the Sunshine Coast was not confined to any area or price range. SQM’s list showed price cuts at beachside locations from Mooloolaba through to Noosa Heads and Rainbow Beach, and out to the hinterland villages of Mapleton, Cooroy and Imbil.
The Rest…HERE
