11 years ago the residential housing market stalled with the GFC.
New village sales dropped overnight from four per month to at best one unit sale per month as mums and dads declined to sell the family home at a lower price than they believed it was worth (based on pre-GFC demand).
Retirement village executives who were in the market then are beginning to talk about a repeat as many Sydney and Melbourne suburb home prices have dropped 7% and 2.5% in the past 12 months, according to CoreLogic.
It is too early to be significantly alarmed but be mindful that these results reflect the last 12 months.
A leading real estate agent here in Balmain (Inner West, Sydney) sent this email out covering their action last week across 11 auction properties. The only three sales were made prior to the auction date. An example of vendors not accepting the new market place (and mimicking the 2007/8 market).
- Passed in $1.5m
- Passed in $1.5m – $1.6m.
- Passed in Initial Buyer’s Guide $1.575m
- Passed in or withdrawn unavailable.
- Passed in vendor bid of $1.2m $1.3m.
- Sold prior undisclosed
- Sold prior undisclosed
- Sold prior undisclosed
- Withdrawn $1.25m.
- Withdrawn, now for sale $1.15m.
- Withdrawn, now for sale $1.55m – $1.65m
It could be an early indication of challenging times.
