Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. He operates the blog MISH'S Global Economic Trend Analysis and believes in the Austrian School of economics.
Home supply in Australia is up with the number of bidders down. Supposedly this puts prices in the bargain range.
For example, you could buy any of the following beauties for $2 million or so, a ‘Bargain’ on Real Estate’s ‘Super Saturday’.
That auction took place yesterday. Today, the results are posted. First, let’s investigate some asking prices.
Basically, Back to Normal
Several houses up for sale this weekend required major renovations were selling for around $1.7m.
Real Estate Institute of NSW president John Cunningham said buyers could compete for homes this weekend with the pressure easing.
Properties with features buyers tend not to like – like being south-facing, on a busy road or having lots of steps – are taking longer to sell and at lower prices,” Mr. Cunningham said.
While these houses are still not cheap, they have major potential.
“This is basically the market just returning to normal.”
The Auction results are in, by region. The article pertained to Sydney and those results are in the NSW region.
I did not track down all the listings in the article.
However, I am pleased to report the 14 Abbots for Road property was sold at auction for the bargain price of $2,320,000.
Let’s see what $2,320,000 buys.
The article describes this fine property.
This crumbling Federation- style house at 14 Abbotsford Street, Homebush comes at a hefty bidder’s guide of $2.1m and plenty of caved-in ceilings. The four-bedroom property is riddled with cracks and parts of the ceiling indicate major leaks in the roof. Selling agent Ben Horwood of LJ Hooker at Concord said he expected three buyers to register bids. This compares with the market a year ago when houses in similar condition were attracting up to ten bidders.
The home went for only $120,000 over the asking price with three people in the bidding war instead of a presumed 10 who may have bid last year.
Yes indeed. Normality has returned to Australia. This all looks very “normal” to me.
Mike “Mish” Shedlock