“A short post is a good post.”
For just about as long as this housing market has been booming (~2008, if you’re counting), Prof Steve Keen has been predicting the end is nigh.
If he’s consistent, the balloon is about to bust.
Grail Quests (cont’d)
Desire + Funds = Quest. Quest + Rarity = Nose Bleed.
Object of Desire: 1 Kingsley Court South-facing, land value, 7,400 sq ft @ $755/ft (probably a record). 6 Questers, $900k over expectations. Reports of death of AAA exaggerated.
Object of Desire: 78 Sackville Street, Kew Sold $5.710m = ~$500/sq ft. $500/sq ft in Kew? Seems like it was $250/sq ft only yesterday.
Object of Desire: Point Nepean Road, Portsea. Sold. Persuasion: $10.7m
Commonalities: Lack of choice (still). Buyers not knowing where to look (still). Buyers pushing back on prices unless rarity/need kicks in. Some agents not helping bridge gaps (self-dug holes?).
Dead In Water
25 Mountview Road, Malvern Passed in @ $4.6m. No flicker of interest.
“We can get you $xx,xxx,xxx.” Outrageous expectations being offered by agents to snare head-in-clouds vendors. Recipes for tears.
“We’ll do it for …” Commissions so low that not even a real estate agent would work for them. And that they do.
2 Hopetoun Road Expect ~$15m.
Happens most years. School year starts and the removalists’ trucks head out from Toorak/South Yarra to Kew/Hawthorn. It’s that or hit the daily traffic jam.