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News: Real estate golden goose takes flight

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Real estate golden goose takes flight

Ellen Lutton

September 5, 2010

Queensland real estate agents are struggling to make ends meet in the current property climate, slashing staff, costs and even closing their doors for good.

Figures released last week by RP Data showed Brisbane to be the worst performing capital city in Australia, dropping -2.5 per cent in the three months to July.

Brisbane’s median house price is now reportedly $440,000, making it the third-cheapest capital city behind Sydney, Melbourne, Perth, Canberra and Darwin. Only Adelaide and Hobart are still cheaper than Brisbane.

Dan Molloy, managing director of the Real Estate Institute of Queensland (REIQ), said agents all across Queensland had been hit hard by the downturn.

“Anecdotally, I can tell you that there are agents laying off staff, merging their businesses and in some cases, having to liquidate,” he said.

“There is certainly a lot of pressure on agents at the moment because for the first time in a long time, we’re seeing more sellers than buyers.”

Mr Molloy said open houses that might have drawn up to 30 groups within a half hour three years ago now struggled to get a couple of viewings.

“I would expect the market to pick up again by 2011...regrettably; a return to normal market conditions will be too late for some.”

More: http://www.brisbanetimes.com.au/queensland/queensland-property/real-estate-golden-goose-takes-flight-20100904-14vg1.html

Should we pass around the hat?

Nah, maybe we should wait until they're in real hardship before helping. Real hardship meaning at least one of the beemers has gone and they've had to sell one of their own IPs at a loss. :dontgetit:

Bonus points to Ms Lutton for the headline...

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More: http://www.brisbanet...0904-14vg1.html

Should we pass around the hat?

Nah, maybe we should wait until they're in real hardship before helping. Real hardship meaning at least one of the beemers has gone and they've had to sell one of their own IPs at a loss. :dontgetit:

Bonus points to Ms Lutton for the headline...

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This is an example of the types of articles we began to see in Sept/October 2008. It also alings with all the anecdotal information I was hearing at the time. This lasted right up until the government launched the increased the first home buyers grant and turned the market around.

Considering we have no government at the moment to step in -this could get very interesting.

In my little patch of the world there are four houses on my street for sale. One of them had an open house on the weekend and one car turned up. Interestingly the vendors have bought elsewhere so they need a sale quick smart.

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We'll have a govt soon enough, but it will be interesting to see if they can push through the same sort of stimulus measures with rural independants holding the balance of power. They may not be very interested in govt money being used to prop up a largely capital city property bubble. Katter for one, is big on the idea of attracting people away from the major cities to develop regional centres.

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we'll certainly be able to piss in adam bandt's ear. the other independents may just horse-trade everything away though -- "you want another stimulus package? agree to put a six lane highway through to far north queensland and I'll sign anything..."

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Oh what a suprise !!

Today we note that mainstream Kochie has decided to tell everyone that there are just too many houses for sale in Oz. Surely this can't be true we have a housing shortage !!!

As we have been saying for months, the Australian is reporting that we actually don't. We can only chuckle to ourselves that housing oversupply stories are starting to appear and note that the in-fighting has begun between the REIxs and the HIA.

As we have talked about before Queensland is ahead of the pack and now real estate agents are finding the going tough.

Queensland real estate agents are struggling to make ends meet in the current property climate, slashing staff, costs and even closing their doors for good.

Figures released last week by RP Data showed Brisbane to be the worst performing capital city in Australia, dropping -2.5 per cent in the three months to July.

Brisbane’s median house price is now reportedly $440,000, making it the third-cheapest capital city behind Sydney, Melbourne, Perth, Canberra and Darwin. Only Adelaide and Hobart are still cheaper than Brisbane.

Dan Molloy, managing director of the Real Estate Institute of Queensland (REIQ), said agents all across Queensland had been hit hard by the downturn.

“Anecdotally, I can tell you that there are agents laying off staff, merging their businesses and in some cases, having to liquidate,” he said.

“There is certainly a lot of pressure on agents at the moment because for the first time in a long time, we’re seeing more sellers than buyers.”

Oh the poor dears. So much pressure. We would like to feel sorry for them , but we know that the situation for the first home buyers they sold property to 8 months ago on 4% interest rates promising continual capital gains is much worse. As we have talked about before property speculation is a slow macro-economic death for any economy, today we see RE agents having problems but this is just the first phase.

Last time Queensland got itself into this mess the government came along with the first home buyers grant boost. Given that Australia currently has no government this is going to continue for some time yet, and we are doubtful whether government intervention would make much difference the second time around.

We just have to wait and see exactly when the market meets the buyer. At this stage it seems the buyers, thanks to some well publised problems, are well aware that it is their market so the trend looks like it is down for sometime yet.

Happy shopping property bears if you could be bothered

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