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Agents Will Be Dying To Get Rid Of Their Properties

Two reports from the Daily Telegraph on Australia. “Sydney’s cooling real estate market is delivering buyers hefty discounts that would have been hard to believe even six months ago. A string of properties across the northern beaches, eastern suburbs and north shore are currently listed at up to $1 million below their original prices after languishing on the market unsold for months.”

“Compounding this, Sydney’s existing pipeline of new housing projects is forecast to increase the current supply of housing by 9.5 per cent over the next two years. And it’s all at a time when buyer demand is falling as purchasers struggle to get financing from increasingly cagey lenders.”

“PK Property Buyers Agents director Peter Kelaher said Christmas would likely present even more opportunities for buyers to get a good deal because agents would be open to accepting low ball offers.”

“‘Agents will be dying to get rid of their properties and will help push through sales very hard,’ Mr Kelaher said. ‘There will also be vendors with larger blocks who want to sell before the New Year for tax reasons or just to get the property off their hands so they can enjoy their Christmas … the market is down and vendors know it.'”

“Desperate landlords are offering tenants up to four weeks free rent just for signing new leases amid a rise in vacancies and drop in rental prices. The offers have followed a surge in new housing construction that oversupplied parts of Sydney with housing, with nearly one in 10 rental homes sitting vacant in some areas.”

“CoreLogic head of research Tim Lawless said renters were in a good position and would be able to negotiate better lease terms. ‘Rents are falling and housing supply is still increasing,’ he said.”

“Some landlords were combating the spike in vacancies by offering their homes with generous lease terms. Similar offers were being made in nearby Sydney Olympic Park and Rhodes. One real estate agent marketing these homes said the free rent offers were borne out of ‘desperation.’ ‘We simply can’t find tenants,’ he said.”

The Australian Financial Review. “Shadow banking executives say the big four have been overzealous in lifting their lending standards, which has sent a flood of new business their way, but they have hit back at suggestions they are extending easy money to risky borrowers.”

“‘Now everyone is applying the same rules,’ non-bank lender RESIMAC’s Mary Ploughman told the Australian Securitisation Forum in Sydney amid concerns that a pull-back in bank lending was aggravating a property correction.”

“Ashley Burtenshaw of Grypon Capital Investments said that while mortgages had performed strongly, the next year would be telling in the context of declining house prices. ‘We do not want this massive build-up in shadow inventory, where no one is paying their loans.'”

“Bruce Potts of IFM Investors, which invests in RMBS, said the fundamentals of the housing market were positive given low interest rates and high employment levels. But he said that with poor wage growth that had reduced affordability, and falling house prices, there were risks.”

“‘We will see people lose money. No doubt about that. Some of the marginal borrowers will be losing the bank’s money and my money,’ he said.”

This Post Has 19 Comments
  1. ‘Sydney’s cooling real estate market is delivering buyers hefty discounts that would have been hard to believe even six months ago’

    Again, this is headed right the direction of all these “oh so hot” US markets.

  2. since Oz is pretty much a Chinese colony, expect a wave of angry foot stampers & pot bangers in front of City Hall demanding refunds of their “hard earned money”.

  3. It sure seems like there are noticeably more autos with “for sale” signs (often hand-scrawled), parked along roadsides throughout town…(I live in Las Vegas, NV).

    1. I should have included this tid bit: I now regularly see (at least one a week) vehicles without license plates being driven around town.

        1. If you’re referring to the vehicles without plates…in NV, you get a paper temporary tag to put on the vehicle until you get actual plates on it.

          1. “I now regularly see (at least one a week) vehicles without license plates being driven around town.“

            New cars you get a reg sticker to put on your window (at least in Ca) and a license plate is sent to you in 2-4 weeks thus new cars drive around without a license plate for a short period of time. If these are older vehicles where they simply removed the plates then I’m curious what the intent is. A cop would be more likely to pull them over than if they had expired registration stickers if that is the reasoning?

    2. Hehe… I just saw a “Take Over Lease” pickup truck ad on Craigslist, which I’m not sure is possible. Are vehicle leases assumable?

      1. Yes – there is a website called for people wanting to get of their lease. Like anything else – seems to be a lot of “bad” deals out there but you can make out if you do your research.

        For example, I saw a lot of BMWs that were pretty much used up on mileage allowance with 5-6 months left – like who would go for that? I think Mercedes has a hefty fee if you turn in a lease and don’t lease again – imagine picking up someone’s MB lease only to find out you have a heft penalty at the end.

      2. Yes they are as long as the buyer has credit. There’s websites for people that transfer the leased vehicles

    3. End of year car sales are generally when you can get the best deals. We just got 10k off on a 2018 which is pretty rare for Audi. We are selling our older Audi private party so we will be joining others like you see selling there vehicles on the streets. Of course it can also be distressed sales but I’m not sure we are close to there yet, 8-10 years ago was a great time to pickup an ex realtor luxury vehicle 😉

      1. I don’t think I’ve ever seen a realtor driving anything I would want. Usually it’s the very bottom rung of whatever “upscale” brand they decided to latch onto. I want max performance per dollar and would much rather drive a Civic Type R than a similar priced slow boring generic Lexus SUV. And I think the latest Civics look horrible.

        1. I completely agree. The styling on the Civics have gone downhill in my opinion. We’ve owned 3 and wouldn’t buy another one. Waiting for my new Tesla, hopefully will have in Jan or Feb.

          1. I guess I’m the outlier here, I really like the new Civic design! But I bought a 4Runner since I’m still going out in the boonies regularly.

          2. Tastes are obviously so personal. What I don’t like about the new civics are that they are starting to look way too futuristic, much like Japanese anime. Pretty cool if you are a 16-20 yo, not so much if you are in your 40s.

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