Great news for sellers? Not really. It’s because nothing is happening.
But Hope Lives On!
Head to $6m or $15m and beyond and you’ll still find vendors who are dreaming that their exceptional home is well worth their exceptional expectations.
But there’s just no movement at the station.
Pickings are getting ever-slimmer. People are staying put. Albert Park, for instance, has not one new listing for all of August and it’s a chain where every link has to work or nothing works. “I’ll sell if that person who is living where I want to live will sell and that person will sell if they can buy and…”
It’s multiple transactions or nobody moves. Not even for some of the truly head-spinning offers we’ve seen.
Not At The Top?
Different story. Deals are being stymied by the banks — it’s not a good season to be borrowing.
And then there’s the internet. Crowded with stale fruit left hanging by prices that belong to a different era.
What’s Up At The Banks?
A lot of stuff that you may have thought that, being banks, they may have thought of doing before — but now there’s been a Royal Commission and they’ve had a bit of a think. Now, when assessing loans:
- They’ll be using more realistic household expense levels — closer to $75k than the current $32-35k for most borrowers
- They’ll be reducing loan to income level ratios (currently 1/3 of loans are at six times income).
- They’ll include all liabilities when assessing debt profiles — including credit card debt — and won’t rely so heavily on self-reporting.
- They’ll be converting interest-only loans to principal and interest
Perhaps not surprisingly, willingness to borrow is now at an all-time low.
Signs of a Spring Awakening?
Nothing to see here. One top end agency welcomed all of 15 people between their eight open houses over the weekend. Others are seeing their agents departing for greener fields.
Agents desperate for something to sell. If you’re living in the desirable, you can expect: “Have we got a buyer for you!” “Gazillions!” “You won’t believe how much we can get you!”
Good advice. Don’t believe it.
You’re Buying? Relax.
It’s a lovely time of year to stay home by the fire. Precious little to miss at the top end. With any luck your pickings will be much happier after the Grand Final.