Melbourne house prices falling $200 per day

z80 · 15-10-2011, 10:42 PM

According to this article house prices in Melbourne have dropped a steady $200 per day for the last 9 months.

That's about 10% in 10 months.

Average prices have moved from $551k last december to $500k.

Should be an interesting 12 months coming up.

Good for those buying....

http://www.heraldsun.com.au/news/mor...-1226167095993

Geez Louise · 15-10-2011, 10:49 PM

We purchased our home in Melbourne East in July...and I received a phone call from the selling agent only a week ago, saying that she had an interested purchaser waiting to buy the house we did.

All this gloom and doom....I call BS on it!

People will buy where they want, when they want!

If it wasn't for capital gains we would have resold....the downturn in the market is only because people are now reflecting the true market...

Real estate...still the best value for money around...

flappist · 15-10-2011, 10:50 PM

Quick heads up.

This subject is important to some. If you have no interest then don't post and if you do post keep it on topic and not personal attacks or general ridicule of those who do not follow your ideas or ideals.

The last couple of threads on this general topic have degenerated into slanging fests that have lead the the thread closure and warnings including temporary and permanent bans.

Please don't cause this to happen again.

z80 · 15-10-2011, 10:52 PM

Quote:

Originally Posted by Geez Louise

We purchased our home in Melbourne East in July...and I received a phone call from the selling agent only a week ago, saying that she had an interested purchaser waiting to buy the house we did.

All this gloom and doom....I call BS on it!

People will buy where they want, when they want!

If it wasn't for capital gains we would have resold....the downturn in the market is only because people are now reflecting the true market...

Real estate...still the best value for money around...

Why not offer them an 8 month contract and not pay the capital gains?
Then you could hedge your bets.

Serial_Fool · 15-10-2011, 10:53 PM

What goes up.....

Geez Louise · 15-10-2011, 10:57 PM

We bought our house for just under 400k...the real estate agent then contacted me and said we have a buyer for 450k...I don't want to move. If you saw what we have done to the house, then you would understand. Last offer I received was $510k on the money...yeah okay...PASS!!

Franco Cozzo · 15-10-2011, 10:57 PM

Quote:

Originally Posted by Serial_Fool

What goes up.....

Will go up past the moon it seems for house prices.

My parents bought out 1500 square meter property for $28,000 in the then new estate within the Macedon Ranges back in 1994, the last block in the estate (which was expanded over the years) is $235,000 and its about 1300 square meters.

I like the area and would like to live here, but its a bit excessive for what you get I reckon, I'll be looking at around Bendigo or on the other side of it I reckon in the next few years, when I'm on better wages ($12.34 an hour at the moment) I'll look into getting a loan and decide where I want my property.

I can't see myself splashing out $400K for a property and a new house where we live, its not far from Melbourne, just over an hour to get to the CBD but thats about all it has going for it.

z80 · 15-10-2011, 11:00 PM

Quote:

Originally Posted by Geez Louise

We bought our house for just under 400k...the real estate agent then contacted me and said we have a buyer for 450k...I don't want to move. If you saw what we have done to the house, then you would understand. Last offer I received was $510k on the money...yeah okay...PASS!!

which suburb are you in?

I wouldn't mind having a look around your suburb?

25% in 4 months is pretty damn good buying!

Geez Louise · 15-10-2011, 11:04 PM

Pm Sent.. Honestly, we are in the fastest moving market in the East....great to know...but how long will it last?

Franco Cozzo · 15-10-2011, 11:07 PM

Quote:

Originally Posted by Geez Louise

Pm Sent.. Honestly, we are in the fastest moving market in the East....great to know...but how long will it last?

How do you find living in eastern suburbs? I can't stand driving around there because its so damn busy, and the monash freeway turns into a car park with the slightest incident.

Geez Louise · 15-10-2011, 11:12 PM

Well I lived in Croydon, and I loved it...10yrs in the same spot and then I moved one surburb down, and to be honest,,,,It is good!

Closer to the freeway, closer to Eastlink...prime position really. I am in the hot real estate market at the moment for the east of Melb and that I don't mind one bit!

Serial_Fool · 15-10-2011, 11:14 PM

Quote:

Originally Posted by Big Damo

Will go up past the moon it seems for house prices.

My parents bought out 1500 square meter property for $28,000 in the then new estate within the Macedon Ranges back in 1994, the last block in the estate (which was expanded over the years) is $235,000 and its about 1300 square meters.

I like the area and would like to live here, but its a bit excessive for what you get I reckon, I'll be looking at around Bendigo or on the other side of it I reckon in the next few years, when I'm on better wages ($12.34 an hour at the moment) I'll look into getting a loan and decide where I want my property.

I can't see myself splashing out $400K for a property and a new house where we live, its not far from Melbourne, just over an hour to get to the CBD but thats about all it has going for it.

You could imagine a great deal of Americans were saying the exact same thing more than 3 years ago but sadly the housing prices as they are now are at unprecedented levels in a historic sense.

The boom must always be followed by a bust and let me tell you: Australians are extremely leveraged up in private debt.

z80 · 15-10-2011, 11:27 PM

Quote:

Originally Posted by Geez Louise

Well I lived in Croydon, and I loved it...10yrs in the same spot and then I moved one surburb down, and to be honest,,,,It is good!

Closer to the freeway, closer to Eastlink...prime position really. I am in the hot real estate market at the moment for the east of Melb and that I don't mind one bit!

I lived in Torquay , a chinese guy came along and paid me 1.5 million for a house I paid 300k for 12 years earlier.

I had to sell, I couldnt believe what he offered me....it was 100k profit a year for the whole time I owned it....tax free.

That was 12 months ago....dunno if i would get that now....

Surely that sort of growth is unsustainable?

Not that i am complaining....

pauljh74 · 16-10-2011, 02:59 AM

I bought my place in Dandenong for $193k in 2007, even after this latest drop it is worth $300k+ now. There's one a few doors down, 15 years plus older, less features and advertised for $295k. It was good if you were investing cash, but for a primary home it doesn't matter as much as if you sell one, you end up buying another that has also increased in value.

trippytaka · 17-10-2011, 11:39 AM

May I ask, does anyone have any knowledge / experience in the Daylesford / Kyneton region?

z80 · 18-10-2011, 09:36 AM

Quote:

Originally Posted by trippytaka

May I ask, does anyone have any knowledge / experience in the Daylesford / Kyneton region?

It's a mixture of urban , rural and semi rural.

We looked at buying there a while ago.

But...

Sun in my eyes all the way to work and sun in my eyes all the way home.
That was a bit hard to take everyday.

**Polyal** · 18-10-2011, 10:22 AM

Kyneton is a nice place, but a fair drive from the city unless you can work from home. Trippy if you want to be closer to Melb and have a country feel look up Romsey, its got enough in the town that you dont really need to travel to go shopping. Also Ballarat has a good highway into Melb.

I grew up in Riddells Creek, less than an hour from the city and only a few shops in the town. Anyway, I have been thinking abodut moving back and I grew up on 5 acres which was plenty, but when I asked my parents what they sold for about 5 years ago (it would be higher now) then holy molly I fell off my chair, its nice having the land but its not that nice!

You cant even get 1/4 of an acre for less than $250k and it goes up sharply aswell..its a joke.

So I welcome any price drop, but thats because I am not an owner at the moment, will be within 24 months though so things suit me fine at the moment.

Z80 thats just a crazy story, I have read a few articles about foreigners coming along and dropping money on real estate but thats the first real story I have heard. But depending on where in Torquay you are its worth that much.

trippytaka · 18-10-2011, 01:49 PM

Quote:

Originally Posted by Polyal

Kyneton is a nice place, but a fair drive from the city unless you can work from home. Trippy if you want to be closer to Melb and have a country feel look up Romsey, its got enough in the town that you dont really need to travel to go shopping. Also Ballarat has a good highway into Melb.

I grew up in Riddells Creek, less than an hour from the city and only a few shops in the town. Anyway, I have been thinking abodut moving back and I grew up on 5 acres which was plenty, but when I asked my parents what they sold for about 5 years ago (it would be higher now) then holy molly I fell off my chair, its nice having the land but its not that nice!

You cant even get 1/4 of an acre for less than $250k and it goes up sharply aswell..its a joke.

So I welcome any price drop, but thats because I am not an owner at the moment, will be within 24 months though so things suit me fine at the moment.

Z80 thats just a crazy story, I have read a few articles about foreigners coming along and dropping money on real estate but thats the first real story I have heard. But depending on where in Torquay you are its worth that much.

Thanks for that

I'll check out Romsey. It's all just ideas at the moment.

Snapping, about to pull the 'chute on city life. I am at my wit's end.

Anyway, back on topic. I find it astounding that the Melbourne market headed south so much faster than Sydney. Sydney is still pretending to be propped up - although the greater west is starting to get hammered by all accounts.

Maybe it's just a delayed reaction up here.

XESP351 · 18-10-2011, 03:01 PM

If not drop slightly further, I'm hoping the prices are at least stable for the next 2 years. Expanding family means we need a bigger home but we won't be in a position to do that for at least 18 mths - 2 years.

I do agree though, long term property investment takes some beating.

RepSpec · 18-10-2011, 03:12 PM

interesting.

im in the process of putting an offer on my first house with the missus and from what we have seen, prices in our range $330k+ houses are becoming more realistically priced.
houses that were 340 6 months ago are now more 320. people are over paying overpriced houses.

the house we are looking at is a 2004 build and in 7 years they have made over $80k going by the sec32

**Polyal** · 18-10-2011, 03:15 PM

Things have tightened up all round, but I was of the opinion that it was more the +500k thats taken a hit. To say its a flat % of the market is not quite right IMO.

Dodd · 18-10-2011, 03:48 PM

Interestingly (Although i don't have figures to match) prices in my area (Eltham area) have gone up. There hasn't really been a drop, and i would expect to sell at around, or higher, the same i paid for my place in Feb.

I was at an auction in the next street over on Saturday and the place when for 45k more than expected! I guess if someone really wants to buy, they will.

joolz · 18-10-2011, 04:05 PM

Bahh just loosing $200 a day from the over inflated price. It will all pan out but only bad if you are selling and greedy.

**Charliewool** · 18-10-2011, 04:21 PM

I sold my house at auction last Saturday (15th)... I copped a bit of a hit IF I went by what agents quoted this time last year when the market was at the peak..
BUT, it still sold for MORE than triple (yes TRIPLE) what it cost 10 and 1/2 years ago!
Where or what else could you invest in and expect a return like that?

I also think Polyal's spot on Re: anything over 500k taking the real hit.
Under that figure, and they're still moving like hotcakes.

AU101 · 18-10-2011, 04:34 PM

Melbourne's going downhill very fast!

The auction clearance last w/e was 51%!! and that's with them sugar coating it! The actual clearance rate is at least 5-8% less

Vendors want 2010 prices and are just not going to get it! I think they should take it while they can, before they lose out anymore

W/e just gone was 54%

Interesting to see this w/e with a mass of 880 houses going under the hammer

So much for a bumper spring season

EFFalcon · 18-10-2011, 04:48 PM

woohooo!

Franco Cozzo · 18-10-2011, 04:51 PM

Quote:

Originally Posted by trippytaka

Thanks for that

I'll check out Romsey. It's all just ideas at the moment.

I'll drop by to say hello, because thats where I live

I live in Romsey, it seems house prices seem cheaper than Riddles Creek, and there is actually more stuff here, but I hope you like cold weather, its usually about 5 degrees colder here than Melbourne and during winter, it gets into the low negatives over night.

You can find even cheaper land/house in Lancefield, just 8km up the road from Romsey, its less than 5 minutes because its all 100km/h up to Lancefield.

I work in Tullamarine and its only takes me 45-50 minutes drive and 95% of it is all 100km/h long stretches of road.

Personally I'd go for Lancefield, its a bit quieter, cheaper and you're only 5 minutes from everything Romsey has, and they have an art gallery, mechanic, doctor, petrol station, butcher, fish and chip shop etc and you've got easy access to everything in Romsey too, like Soltan Pepper the restaurant.

Just be weary that what ever happens in this town, everyone knows about it.

**Polyal** · 18-10-2011, 05:02 PM

Quote:

Originally Posted by Big Damo

I'll drop by to say hello, because thats where I live

I live in Romsey, it seems house prices seem cheaper than Riddles Creek, and there is actually more stuff here, but I hope you like cold weather, its usually about 5 degrees colder here than Melbourne and during winter, it gets into the low negatives over night.

You can find even cheaper land/house in Lancefield, just 8km up the road from Romsey, its less than 5 minutes because its all 100km/h up to Lancefield.

I work in Tullamarine and its only takes me 45-50 minutes drive and 95% of it is all 100km/h long stretches of road.

Just be weary that what ever happens in this town, everyone knows about it.

Yeap if I get work in Cambellfield then your area is on the list..hehe..40mins is still a drive but not that bad.

Have you seen prices in Gisbourne lately? Its out of control. The only thing riddell has going for it is that train station, and AFAIK Romsey doesnt have one. So people ca use the train to Melb if they want, otherwise yeah the attraction would be the nothingness..LOL

Franco Cozzo · 18-10-2011, 05:04 PM

Quote:

Originally Posted by Polyal

Yeap if I get work in Cambellfield then your area is on the list..hehe..40mins is still a drive but not that bad.

Have you seen prices in Gisbourne lately? Its out of control. The only thing riddell has going for it is that train station, and AFAIK Romsey doesnt have one. So people ca use the train to Melb if they want, otherwise yeah the attraction would be the nothingness..LOL

Yes, its nuts, they have a McDonalds opening up soon too

If you wanted the train though you could just drive to Clarkefield, its a town with like 5 people living there and they have a Ford/Holden wrecker, a big pub and a train station, crazy.

Matty4 · 18-10-2011, 07:38 PM

Quote:

Originally Posted by Geez Louise

We purchased our home in Melbourne East in July...and I received a phone call from the selling agent only a week ago, saying that she had an interested purchaser waiting to buy the house we did.

All this gloom and doom....I call BS on it!

People will buy where they want, when they want!

If it wasn't for capital gains we would have resold....the downturn in the market is only because people are now reflecting the true market...

Real estate...still the best value for money around...

Since when have you had to pay capital gains tax on your primary place of residence?