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The Very Few Homes That Are Selling Are Taking A Substantial Discount

A report from the Daily Telegraph on Australia. “Property values in Sydney’s inner west, Parramatta and other isolated city pockets have been diminishing by roughly the price of a smashed avo breakfast every hour. Newly published figures showed median house prices in parts of these areas dropped by more than $200,000 over the past year, a fall of $500-plus a day.”

“This equated to a drop of at least $20 every hour, roughly the price of an Aussie cafe favourite, smashed avocado on toast and coffee, a meal once at the centre of the housing affordability debate. Demographer Bernard Salt launched a national debate about housing in 2016 when he warned that Millennials would never save home deposits if they kept ordering expensive avo breakfasts.”

“Smashed avo went on to symbolise how out-of-reach the Aussie dream of home ownership had become. ‘Back then it was clear that prices were moving away from the younger generation and smashed avo caught the Zeitgeist of the time,’ Mr Salt said. ‘Now the situation seems to be in reverse and (buying) is getting easier.'”

“Waterfront suburb Russell Lea had the biggest drop in prices over the past year, with houses in the area losing $1300 in value every day, an analysis of CoreLogic data showed. Prices in Glebe fell at a similar rate of $1246 per day, while price falls in Croydon and Concord West were about $1100 per day. Values in the Parramatta CBD dropped by an average rate of about $993 per day, totalling about $362,000 for the year.”

The Vancouver Sun in Canada. “It’s back. After several years of continually rising prices for single-family detached homes in Vancouver, the sub-million dollar house has re-appeared — and it even has a white picket fence and grassy back yard.”

“The listing, at 1578 East 22nd Avenue, is priced at $998,000 — which is a hefty discount on the $1,264,800 value placed on the property on July 1, 2018 by the B.C. Assessment Authority. It was assessed at $1,319,600 on July 1, 2017. How many more sub-million dollar single family detached homes appear on the market over the next year is truly anyone’s guess.”

“There is, however, writing on the wall, with the Real Estate Board of Greater Vancouver last month revealing the sales of detached homes for Dec. 2018 was 43.6 per cent fewer than the same month in 2017. And the benchmark price for that class of home dropped 7.8 per cent in 2018. Not to mention the B.C. Assessment Authority’s latest report showing widespread drops in assessed values for detached homes across Metro Vancouver, particularly in Vancouver and West Vancouver.”

“Vancouver realtor and blogger Steve Saretsky joined the naysayer fray in his Dec. 2018 real estate report that states Vancouver’s ‘detached housing market continues to turn heads’ — and not in a good way.”

“He states ‘buyers are hesitant to pull the trigger, and sellers are somewhat reluctant to adjust their asking prices, although the very few homes that are selling are taking a substantial discount. The prevailing sentiment in the detached housing market is frustration amongst sellers. After several price reductions many sellers are taking their property off the market with the plan to relist in the spring when housing activity seasonally ramps up.'”

The Daily Mail on the UK. “With house prices dropping and desperate sellers tearing their hair out, Britain is facing its worst housing slump for 20 years. And it’s not just affecting your average Joe. In times like these, make sure you also spare a thought for our poor celebrities.”

“It seems their palatial pads — decked out with extravagant rooms, landscaped grounds, pools, gyms and Jacuzzis — aren’t immune. So, which stars are suffering in the current market slump? Who has sold for a song or dropped their asking price, and who’s still holding out for top whack?”

“Set in one of West London’s top locations — overlooking Regent’s Canal in Little Venice — Noel Gallagher must have been confident of a quick sale when he first put his house on the market for £11.5 million in 2016. But the stucco-fronted five-bedroom semi failed to sell and the rock star soon begged for Russian oligarchs to buy it. But not even slashing the price to £8.95 million last year has helped shift the property, which he bought in 2010 for around £8 million.”

“Zayn Malik sought sanctuary in this five-bedroom house when he broke fans’ hearts and left One Direction in 2015, but the pop star can’t hide from London’s falling house prices. He bought the home in Barnet, North London, at the height of his fame in 2012 for £3.65 million, but last year put it on the market for £150,000 less than he paid.” 

This Post Has 25 Comments
  1. ‘Demographer Bernard Salt launched a national debate about housing in 2016 when he warned that Millennials would never save home deposits if they kept ordering expensive avo breakfasts’

    Eat your crow Bernie.

    1. “Waterfront suburb Russell Lea had the biggest drop in prices over the past year, with houses in the area losing $1300 in value every day

      With declines that steep, one could soon afford to buy a house AND eat out every day! 😀

      1. BTW, when I was down under, I never had smashed avo as part of my breakfast. I did have fried tomatoes as part of breakfast, yum yum.

    2. “This equated to a drop of at least $20 every hour, roughly the price of an Aussie cafe favourite, smashed avocado on toast and coffee,…”

      Oz prices becoming more affordable by a smashed avo per hour is awesome news for housing affordability. Can’t wait for similar affordability improvements to land on the U.S. West Coast!

  2. London, Vancouver and Sydney. All three at one time the most expensive on the planet. Has the main stream media told you the bubble has popped?

    1. I believe the REIC shills and the MSM parrots on their shoulder refer to this phase of a bursting housing bubble as “plateauing.”

  3. Newly published figures showed median house prices in parts of these areas dropped by more than $200,000 over the past year, a fall of $500-plus a day.”

    That’s considerably more than the money I’m throwing away on rent.

    1. Imaging paying $500 a day on rent ($15,000 a month). You could have your choice of the fanciest luxury rentals in the world for that kind of money!

  4. house prices in parts of these areas dropped by more than $200,000 over the past year

    This is all you need to know about “growth” in China.

  5. The prevailing sentiment in the detached housing market is frustration amongst sellers.

    Soon to turn to blind panic and desperation to get out from under their equity-shedding shacks. Gravity is not your friend, greedheads.

    1. The Financial Times
      World Economic Forum in Davos
      China’s overseas investment set to slow, says Sinochem
      Trade tension with US leaves Chinese companies confused, Davos gathering hears
      Arash Massoudi and David Crow in Davos
      2 hours ago

      The chairman of one of China’s largest chemicals groups said that overseas investment by Chinese companies would slow due to trade tensions with the US that has left them questioning their standing.

      “The Chinese are getting quite confused. They thought they are welcome to invest in other countries, but now they realise they are not being welcomed all the time,” Sinochem’s Ning Gaoning told an opening session of the World Economic Forum in Davos on Tuesday. “You will see there will be less investment going abroad.”

      Mr Ning’s comments come as trade tensions between the US and China look set to be the dominant topic among business and political leaders gathered in Davos.

      “Our number one worry is China and number two is China-US relations,” said the head of a large sovereign wealth fund. “I suspect that in 2019 we will see a lot of volatility — there is a lot of room for surprises.”

      Stephen Schwarzman, chairman and chief executive of the investment group Blackstone, told a panel discussion that it was too difficult to predict how long trade tensions would last, but that it should be temporary.

      “When I say ‘temporary’ I am not talking about until the next Davos. This takes a while
      .”

      1. The Chinese are getting quite confused.

        I don’t believe it. Could it be that your river of money is running low?

  6. “There is, however, writing on the wall, with the Real Estate Board of Greater Vancouver last month revealing the sales of detached homes for Dec. 2018 was 43.6 per cent fewer than the same month in 2017.”

    I love reading the writing on the wall, especially when the scope of the consequences are so ubiquitous.

  7. Gasoline prices seem to get more affordable by the day, and I’m loving it! Hopefully under $3/gal prices will stick around for a while in San Diego. I’m filling up today for sure.

    1. The Wall Street Journal
      Commodities
      Oil Prices Follow Economic Forecasts Lower
      Slowing growth in China and cuts to global expansion forecasts have put the brakes on oil’s recent upward trajectory
      By Christopher Alessi
      Jan. 22, 2019 5:26 a.m. ET

      · Oil prices fell Tuesday on the back of fresh signs of slowing global economic growth.

      · Brent crude, the global oil benchmark, was trading down 1.3% at $61.92 a barrel on London’s Intercontinental Exchange.

      · West Texas Intermediate futures, the U.S. oil standard, the was down 1.3% at $53.35 a barrel on the New York Mercantile Exchange.

      To Read the Full Story
      Subscribe
      What to Read Next…
      China
      China’s Annual Economic Growth Rate Is Slowest Since 1990

  8. “Amid a government-shutdown-driven dearth of macro data, this morning offers a tasty morsel to feed the hungry and hopeful masses as existing home sales (EHS) is due to print.”

    Given the coincidental timing of the government shutdown with the nascent housing bust, there’s a serious risk that the cause of the U.S. housing downturn will be retrospectively misattributed to the government shutdown, when and if the government ever reopens.

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