Oh, the fickle media
September 15th 2008 02:47
Story in the weekend papers has shattered me. Something about Sunshine Coast (Qld, Australia) property sales falling to the lowest level in eons, according to Real Estate Institute of Queensland figures. REIQ says that means they can't calculate what the mean property price is and we should all be worried because nothing is moving here. Bullship. How about comparing the number of houses sold to the number of properties actually for sale? No, not how many homes were up for auction but didn't sell at auction - but how many are actually on the market?
Using auction clearance rates to rank the success of a real estate market in a time of ecnomic downturn is just silly. People don't buy at auctions when they think the person selling it is in financial trouble. They don't bid at auctions when it's a buyer's market - they go to auctions to see how much a house is passed in for, before going away, waiting a few days and then contacting the agent with an offer at the same level or below that level.
Also, people don't put their homes on the market when they think it's a buyer's market. Why would they move when they think they are going to take it up the bottom price-wise if they sell? Rather stay put, ride it out, put off upgrading until absolutely necessary or an interest rate cut comes along.
No matter if it's a buyer's market or a seller's paradise - the same rules still apply in real estate. The house is worth what you are willing to sell it for. No, it's not worth what someone will pay for it - that is just crap. That's how much monetary return you will get when you finally do decide on that magic figure for which you will let it go.
How much your home is really worth depends on how motivated you are to sell it.
Or am I just raving, barking mad and just don't want to face the facts that I am going to have a tough time selling in this market?
Adventurous, indeed
Using auction clearance rates to rank the success of a real estate market in a time of ecnomic downturn is just silly. People don't buy at auctions when they think the person selling it is in financial trouble. They don't bid at auctions when it's a buyer's market - they go to auctions to see how much a house is passed in for, before going away, waiting a few days and then contacting the agent with an offer at the same level or below that level.
No matter if it's a buyer's market or a seller's paradise - the same rules still apply in real estate. The house is worth what you are willing to sell it for. No, it's not worth what someone will pay for it - that is just crap. That's how much monetary return you will get when you finally do decide on that magic figure for which you will let it go.
How much your home is really worth depends on how motivated you are to sell it.
Or am I just raving, barking mad and just don't want to face the facts that I am going to have a tough time selling in this market?
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