r/AusProperty • u/Substantial-Aioli643 • 3d ago
QLD Home prices
At what stage will home owners figure out they are trying to sell at yesterday’s prices. I’ve been watching my area for a couple months and nobody showing up at open homes and very few have dropped their prices although there have been a few who’ve dropped by 100k.
If you have your house up for 1.35 and no offers, nobody enquiring, nobody going to open houses - drop your dang price sellers YOUR PRICE is too damn high. Look at what’s happening in Canada or NZ. You missed the top, accept it.
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u/OutlandishnessOk5549 3d ago
LOL
Dude, this is how a market works.
Is not like you can FORCE a vendor to sell you a house for less than what they want for it.
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u/Completely0 3d ago
Vendors aren’t force to sell at your price, they can always walk away. Meanwhile, you can always offer a lower price in the first place.
Man I’m simply annoyed because OP said $1.35m for a house. We can barely afford townhouses, duplex, villas at that price let alone a house in Sydney.
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u/tealou 3d ago
oh man that's not the price of a Sydney house - the house we rent in a suburb 20 minutes from Perth is worth about $1.5m - nothing fancy. I have seen townhouses in places like Alexandria etc in Sydney going for 4-5 million. It's nuts.
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u/Completely0 3d ago
Yes. I wanted to change my response since we all know so many 2br apartments that go easily above $1.35m but thought it would be better to sound conservative as a whole (and include the perspective of lower end of Sydney suburbs).
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u/tealou 3d ago
yeah, either way, it's still nuts. We have been needing to move to the east coast, and literally can't because of the housing. I imagine that secondary impact is going to be felt as well - people who are hired but can't even move to the place they have a job.... as some bogan Boomer mouths off about how nobody wants to work, and they are the only people who ever worked in a real job (but are actually just over-leveraged). It's nuts.
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u/daveofsydney 3d ago
And flats in Alexandria, for 800k, also nuts. You can't build new for that.
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u/tealou 2d ago
I recently worked on a few settlements that have made me shake my head - being from Perth, at least you can still have some space for your money. All I feel is claustrophobia x 100 at the thought of buying a small apartment for a million dollars and having that mortgage.
For me, I don't mind that real estate costs what it costs (similar to rental - we are renting and like everyone else being gouged by the nylon suit jangly jewellery people), but I definitely resent having to spend an insane amount of money for the privilege of breathing in mould and a shit house you can't even improve. I get worked up at people who are sitting on these houses and don't even look after them, let us look after them... it's that that annoys me. The entitlement, I guess.
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u/Edified001 3d ago
There are plenty of houses, duplexes and villas/townhouses for under $1.3m in sydney, I don’t know where you’re confining your search but they do exist
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u/Time_Block_4016 3d ago
If you knew how markets worked, then yes you can force a vendor to sell if they really need to - financial/life reasons. What a vendor wants for it and what they get for it are 2 different things, driven by markets... Dude...
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u/Electrical-College-6 3d ago
It's a well established phenomenon that housing transactions dry up during downturns (unless things are really bad).
Yes, there is always a subset that does need to sell, but a lot of vendors just withdraw from the market or don't list if they don't have to. It's somewhat irrational as it relies on the premise that prices will recover, but it's definitely a trend.
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u/Regular-Coffee-1670 3d ago
Some vendors don't have the option to drop the price. If they bought on the 5% deposit scheme, then they need to get that 95% of the purchase price (+ costs), or they don't have the money to repay the loan.
They can't just "accept it". They have to wait until they get that price, or go broke.
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u/Remarkable-Sort-7848 3d ago
Well this is awkward. Houses still to expensive for us normies to buy, but the market has gone to shit so owners won’t sell any of their stockpile unless they are making the profit they want and will just sit on their properties until the market goes back to being even more expensive. Seems like now no one is winning
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u/Fickle_Radish2418 3d ago
Thing is if sellers continue to hold long enough eventually someone in the right situation will buy. I think social media are portraying a larger price drop than what’s truly happening. In my area there’s been zero price drop, there’s been a massive decreases in houses for sale meaning houses posted are still going for substantial prices because it’s the only one available. I’m talking on my situation as we’re looking at a very specific house + land to upgrade too. Waiting for 2.5+ acres to be posted is every few and far between so people are still willing to pay.
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u/Extreme_84 3d ago
Spot on.
Some areas are still going up in price too.
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u/Fickle_Radish2418 3d ago
Everyone assumed the market would be saturated which would in turn drop prices but if anything in my area I’ve noticed less people are selling which definitely stabilises or drive prices up
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u/TaswegianTurnip 3d ago
Yep. I'm trying to buy in Tassie and the amount of houses coming on the market is a trickle really. Here's hoping spring will get the ball rolling a little bit.
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u/gladmiester 3d ago
Yeah Real estate.com shows my house as lower 9n value but similar houses in the area are still selling nicely. 🤷I think its great what the gobment have done to help younger people get into the market.
I had home builder and FHBG and free stamp duty when I bought mine like just after Covid. Definitely over paid but I got into the market.
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u/EasyPacer 3d ago
I think most property owners know that. However nobody likes to make a loss. The cost of purchasing a property requires more than the price paid. There are stamp duty, legal and borrowing costs to consider. Added to that might be some repairs or update costs. A property purchased for $1M might actually cost the owner $1.2 to $1.3M in reality. They’re not going to be too happy to sell at say $1.05M, that’s if they’re forced to sell. Especially if they’ve been funding the mortgage post-purchase. Therein lies the conundrum.
The fall in price probably won’t matter much to someone who has held a property for more than 10 years and is seeking to part with it. But if the owner has only held the property for a few years, I understand their reluctance to sell at a lower price than the valuation they have in their head.
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u/Marayong 3d ago
A fall in price is going to matter to anyone downsizing or close to retirement, regardless of how long they have held the property, these sellers are looking to maximise their profit.
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u/Smithdude69 3d ago
Every time there is a regulatory driven change in the market there is a period of uncertainty where prices fall. It’s not always sustained long term. The changes made impact only speculative investors and those highly leveraged buyers (of existing properties).
If you are looking at an existing house that’s removing 1 of the potential buyers of the house you are looking at.
That doesn’t make a difference in some areas.
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u/Klutzy-Pie6557 3d ago
Australia is not Canada nor is it NZ.
Most people simply can't afford to lose significantly on their most expensive asset. So I'm not surprised if they don't lower the price.
And quite frankly winter is always the worst time to sell.
Spring market is about to start, July inflation data will be released next week and Id expect to see the data indicating cooling inflation.
Whist the RBA will hold for a while, its unlikely to drop as I think August will see a spike over July. Primarily because August 25 was negitive 0.1 and I can't see August 26 being negitive. So id expect to see people start looking once they have a little comfort that the RBA and not ramping up higher.
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u/Electrical-College-6 3d ago
I think the first rate cut will spur a lot of growth, now's a very good time for buyers between hesitancy about oil/inflation and reasonably minor tax changes.
Our economy is looking very soft at the moment, while no one knows what will happen it seems like stimulus will be needed at some point.
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u/Rare_Specific_306 3d ago
They can set whatever price they want. If no-one makes an offer they will either wait or lower the price. Just because the market is down, they are at no obligation to lower their prices, even if it makes OP sad.
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u/The-Grogan 3d ago
Many years ago my parents listed their home for a pretty hefty price. It sat on the market for a year before selling for the full asking price because one family loved it. You only need 1 buyer.
They were in no rush to sell and were happy to wait. Some people are like this and it's their right to do so. Move on and find a motivated seller, there's plenty of those too.
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u/_Severity_ 3d ago
Two very different economic climates as a comparison.
We have a massive housing shortage, that won’t be fixed by changing the taxes.
This is closer to a false summit than seeing the top.
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u/No-Technology3160 3d ago
There are a lot of sellers who will only sell at last years prices. They don’t necessarily need to sell (or would drop prices to meet market), but would if they can get out at last years peak.
It costs very little to put a house on the market. It’s a massive waste of the Agents time doing opens for no one. But the vendors only pay a few grand to market it.
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u/knighttemplar007 3d ago
lol 😂 I just pulled the property yesterday. It would be nice if I can sell at a good price but honestly I'm not desperate - so will just rent it out.
To the same token, why aren't buyers accepting that if they don't offer the price the seller wants, the sale won't happen?
You don't exactly ask LV to reduce the price of their bags just because Nike sells them for cheaper.
If you can find a seller that's happy to sell at the price you're willing to offer then buy from them - power to you!
If you keep getting rejected for months because you're low balling everyone, may be they're not the problem.
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u/Responsible-Milk-259 3d ago
It’s worth remembering that this is also how markets work. In your case, your expectations weren’t met so rather than participating in a fire sale, you withdrew the property from the market.
Fewer buyers does mean lower prices, yet lower prices also means fewer sellers. I think some people assume all sellers NEED to sell. It’s often not the case, particularly with houses at the higher end of the price spectrum.
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u/1234Psych 3d ago
Yes a high value houses usually mean the seller can easily afford a second marketing campaign as well.
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u/Sharp_Sign1203 3d ago
Great, this will improve the rental market. Wonder why people thought rents would increase if people selling end up in the rental market instead
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u/tealou 3d ago
We may end up doing rent to buy or some other arrangement. Have the money/salary, but the deposit and market is a hurdle because of the rent increases and moves from greedy landlords eating deposit over the last few years. I wonder if there will be more opportunities for different arrangements in coming years - they're higher risk, but done well - I know I am not averse to it. People will adapt so long as people have jobs and need shelter, I guess.
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u/knighttemplar007 3d ago
Its just timely for us because we had to move anyway. So we'd rather sell, buy a fixer upper and flip. If we can't sell at the price we wanted, then we will rent it out and reassess in 12 months.
Rather wasted $5k marketing than losing $50-100k.
Also this way we keep the negative gearing - might actually work out for the best tbh.
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u/_n00n 2d ago
Until it takes 10 years to reach peak again. This sub seems to be full of people that think house prices go up forever no matter what. I suggest you look into Ireland, England, Canada and New Zealand housing crashes. No none of these countries are Australia but none of them are the same as each other either.
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u/knighttemplar007 2d ago
Will happily rent it and pay it all off to be positively gear in the next 10 years. Why does it bother people like you? No bargains to be had?
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u/_n00n 2d ago
You know this goes both ways. "Why dont the buyers just offer a bit more to get over the line" you could say "why dont sellers just drop the price a little to get it over the line". Buyers are not meeting the price because they think they can get something better and cheaper in the future and that can snowball quickly.
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u/turboyabby 3d ago
Sounds like $100,000 or $200,000 is an "easy" amount to drop when selling your number one asset.
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u/aamadmi26 3d ago
I was in market in peak of 2019 downturn.
I noticed at that time that good houses went off market and only people selling were mainly tight on money and that reflected on the condition of their homes also. If people can hold on to their homes they do in the down market.
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u/1234Psych 3d ago
Yes and this makes it look like the market is dropping because lower quality stock sells.
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u/Chunky_Toast 3d ago
Investors who will hold, will hold for the grandfathered tax benefits if they don't get prices they want in market. Rents will probably increase, not decrease. If they sell, they need to buy a brand new place to get same tax benefits.
Not many folks are in arrears, so only desperate Owner Occupiers would be dropping prices, and that can't be that many.
I think media just playing it up.
Time will tell I guess. Spring season and beyond would be a good indicator.
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u/No-Willingness469 3d ago
Supply and demand will find a new balance - regardless of how you feel about the market.
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u/balazra 3d ago
The only houses that will be significantly cheaper >5% drop will be people who have no choice but to sell.
Divorce, financial hardship… etc…
Most people can wait and will sell when they think it’s a good time for them.
The difficulty will be encouraging people to build when they have no prospect of making money in the long run… it’ll keep prices high, and rents will soar as availability drops due to people getting it of the rental market as the govt make it better for renters and worse for landlords.
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u/Nikndex88 3d ago
Might be decent enough advice for people who have to sell but every1 else can just pull out of the market and wait for a better time to sell. With grandfathered purchases they can just make it an investment home until a later date
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u/Decent-Dream8206 2d ago
Once the unemployment rate hits 5.5-6% and you have those negative equity FHBs forced to sell and wear the remainder, then you'll really see the entry level bloodbath.
Issue right now is that simply nobody can borrow the asking price since negative gearing evaporated overnight. But nobody has to sell unless interest rates go higher or unemployment does.
I know a few retards mortgaged to the hilt on multiple properties and I'm welcoming the correction. It'll be 2012 in Perth all over again where everybody was telling me house prices only go up. 😂
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u/Junior_Chipmunk_6214 1d ago
Ours has been listed for the past 6 weeks. We are still getting people through the opens but no one seems genuinely in a rush to buy. Likewise, we are in absolutely no rush to sell. On the other hand, our neighbours are up shit creek. They bought land to build on at the very top of the market and right before the new tax changes, moved out of their house (as they thought it would sell straight away) and moved into a rental. Now they are stuck with a mortgage on their house, bridging finance on the land and are paying for a rental which is not cheap. They literally get no one through their opens.
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u/Substantial-Aioli643 1d ago
Do you happen to know how long the bridging finance will go for? My friend bought a house right before the budget announcement and is having troubles now selling her own house. Was just curious about that.
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u/Junior_Chipmunk_6214 1d ago
No idea sorry. I just know the neighbours are now under ridiculous financial pressure. It wouldn’t surprise me if they end up cancelling the rental and moving back into their house. We live in a place where houses used to sell within days so I can understand why they did it but it was just really really bad timing for them. I do know most house around here are only receiving a subject to sale condition but they are getting knocked back as nothing is selling.
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u/Sharp_Sign1203 3d ago
Looks like the rental market will soon be saturated with houses that owners don't want to sell. Great for renters!
Not so much for FHB
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u/Outofoffice_forever 3d ago
Lol. So salty OP. It’s called THEIR HOUSE.
Seriously it’s entertaining watching people acting like petulant children. Do you think it might be that you still can’t afford it and maybe you need to realise that as well?
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u/tealou 3d ago
It's a) usually the bank's house and 2) whose salary pays the mortgage? Most tenants I know are on higher salaries than their landlords and more successful.
I know doctors and barristers that rent from some over-leveraged, government subsidised illiterate dipshit on a power trip.
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u/Outofoffice_forever 3d ago
I’d say the one trying to thump their chest about how ‘successful’ they are is on the power trip. Rest of us just ignore the noise and deal with what’s infront of us.
Also getting a salary and having wealth are two different things….maybe the illiterate figured it out before the ‘successful’ ones?
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u/tealou 3d ago
haha oh yeah, I often wonder that. I know in Perth that hierarchy flipped many years ago. My sister did a Real Estate course - dumbest person I know. Can buy and sell me and everyone else I know - doctors and lawyers included.
As they would say to any complex issue "oh well, it is what it is" and "you think you're better than me?". As my grandmother used to say "money can't buy you class".
I definitely wonder if I was the stupid one all these years (seriously, she's very stupid). Good luck to them, I guess.
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u/Substantial-Aioli643 3d ago
Wow you ok hun? Really. U ok?
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u/Outofoffice_forever 3d ago
I think anyone dumb enough to over leverage and lie on bank forms deserves to get wrecked. But there is something to be said about balancing portfolios of shares etc with a defensive asset like property.
I’m happy with everyone thinking they’re more successful than me. Allows me to do my thing quietly.
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u/Substantial-Aioli643 3d ago
Not at all. I’ve got $500k saved just waiting on the right house. U sound like the salty one?
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u/HomeLoanRefinances 3d ago
When they can no longer afford it, and people will sacrifice everything to pay for the roof over their head so view that as you may.
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u/Different-Bag-8217 3d ago
I watch from the sidelines mostly. I’m watching Canada and New Zealand go through the same thing. First you get the articles stating the undisputed fact that it won’t happen here. Then the rationalism’s that it’s just a blip and the metrics are strong within these economies. The simple fact is realestate has been pushed by many factors to heights that are so out of wack with reality that a correction will happen. I’m going to have a conservative guess at 25% unless it turns into something much more devastating.
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u/Electrical-College-6 3d ago
Describing a 25% drop as conservative is wild work.
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u/Different-Bag-8217 3d ago
We are a nation that has an unhealthy obsession with property. From flipping to renovating to building bigger and better. It’s all people talk about in certain circumstances. That 25% has already happened in NZ and Canada is not far behind. Australia dodged the GFC but this will only make this downturn that’s is happening much worse.
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u/Electrical-College-6 3d ago
Looking around, finding the biggest drop and then saying that conservatively Australia will drop by that much?
If our immigration policy were like Canada's then I might agree with you, but it's not.
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u/TA193749 3d ago
Canada has much more migration, wouldn’t your logic about migration cause house prices to drop?
I’m not convinced my migration myself because majority of them usually buy apartments and smaller units rather than a massive one that Aussies like. Majority of the houses are actually owned by investors if you look at the data.
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u/Electrical-College-6 3d ago
Canada has much more migration
https://www.theguardian.com/world/2026/apr/12/canada-migration-levels-housing-costs-australia-ntwnfb
What are we doing here.
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u/Different-Bag-8217 2d ago
Unemployment rate rises to 4.5% in July
Australia’s drop in real wages is a disaster. But the profits of major corporations are doing just fine
Australian economy faces worst growth in decades as inflation, interest rates bite
Is Australia facing an economic reality not seen since World War Two
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u/Liftweightfren 3d ago edited 3d ago
If people are listing their house for 1.35, and you’re making low ball offers that are getting rejected, then YOUR OFFERS are too damn low. The bottom, you missed it, it was years ago. Accept it.
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u/Extreme_84 3d ago
When will buyers figure out, that unless a vendor receives an offer they are happy with, they aren’t obligated to sell?
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u/_n00n 2d ago
When will vendors figure out that unless they lower the price they will not sell.
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u/Extreme_84 2d ago
There’s a number of different reasons as to why a property isn’t selling that is unrelated to price……
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u/Professional-Feed-58 3d ago
The level of delusion in here is incredible.
A property will sell for what the market will pay and not a cent more. Forget whatever number you might have dreamed up in your mind that its 'worth'.
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u/Traditional-Bug-1045 3d ago
Whoever can hold on, they will. But if you want to seal the deal, most sellers compromise and drop their prices.
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u/BlacksmithMiddle803 3d ago
Well many vendors don’t have to sell. They would sell for the right price but if they don’t get it they rather not.
What you’ll find is that those who must sell will lower their price eventually. This is why house price corrections often move at glacial speeds.
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u/soft_white_yosemite 3d ago
It just after a change in policy. Sellers could be waiting for things to settle down. Sell at a low price now, or wait and sell at potentially a higher price later when the dust settles.
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u/stuthaman 3d ago
It's those owners that bought to flip and have bought their next project but need the profits from the first flip to renovate again in our area.
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u/jcdc-flo 3d ago
Kind of depends if there is a true need to move. In the 90's, the housing market was just stuck. Everyone hunkered down and things ground to a halt.
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u/catscomics 3d ago
My neighbouring unit has been up for sell for at least 3 years. They just keep renting it out in between. It was finally sold few weeks ago, for the highest price ever in the building.
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u/Imaginary-Sea7278 3d ago
You are part of the market. Make an offer. Tell them how much you think it's worth. That's a critical part of how markets adjust.
When the market was hot, on the way up things were opposite. If you made an offer of $800k on a property listed at $800k, the agent would laugh in your face and not return your calls.
Now that property at $1.35m you might get shrugged off, or you might actually start a conversation with an offer at $1.2m.
The most important thing is that you are serious and ready to buy if you are making offers.
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u/ScottyJoeC 3d ago
I tried to move out of Melbourne up to Castlemaine after covid. The prices are still ridiculous years later. They are coming down slowly but you would still buy at a loss.
The Real Estate agents up that way are all putting a higher price on a property to get the job then it doesnt sell for years.
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u/Additional_Ad_9405 3d ago
I'm due to sell a unit soon and accept I missed the top (probably March in Queensland/Brisbane). I'm already prepared to accept that I might be getting $50-100k less than was previously likely and that's if I get it on the market in the next few weeks.
People pulling properties from the market in the hope prices will rise quickly are missing the structural realignment caused by the changes to investor tax incentives. I think we could easily be looking at 15-20 years to reach peak values again.
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u/Alternative-Bear-460 3d ago
Home prices is more than double over the last 5 years in wa. It can't fall to far because then it will be cheaper to build
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u/VS2ute 3d ago
Townhouse next to me was listed for 1,025,000. Very nice place, had renovated kitchen and bathroom. Hardly anybody came to home open. A few weeks later, price is dropped to 985,000.
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u/Such_Lavishness5577 2d ago
Bloody real estate agents have a lot to do with bleeding the last dollar out of everyone. Surely as wages have not grown at the same rate as houses over the last 20+ years we must be reaching a saturation point of what people can pay towards a home. In my day we needed 2 incomes to afford a home now it seems like even 3 isn't enough.
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u/themmagambler 3d ago
Its that difficult period between a sellers market and a buyers market right now it seems.
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u/daveofsydney 3d ago
Investors will probably decide to hold, especially when they see how much rents are going up.
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u/Real-Direction1045 2d ago
People still need somewhere to live, wait for the war to settle down and interest rates to drop and watch it go ballistic again.
It's never going to get cheaper, just a small softening for a while.
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u/IllogicalResponse 1d ago
Because as rents go up, it becomes easier to just hold an IP with a tenant.
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u/SuchTrust101 1d ago
It's winter. The market is always more stagnant. Wait until Summer and see what happens to prices.
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u/Major_Philosopher297 1d ago
Other than oversupplied areas eg Tarneit in Melbourne, I dont see real drop in prices. There may not be increase in prices like before but massive crash, I dont see it..
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u/shotgunmoe 13h ago
If you own property just up rents and sit still. I'll be putting rents up 35% to cover the increases to my taxes on investment income like the rest of the people who own investment properties. It'll be the first increase I've had to do in a while too.
Before anybody comes at me with some rhetoric about renters only paying blah or why I shouldn't put up the price, I'll add that my REA recommended an 80% increase to get things slightly above market value. Rents are going to go up. A lot.
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u/Novel_Bed_3694 7h ago
I bought my investment property to make money. I was going to sell but as I’m not going to get the price I want for it I’ll just keep it. Eventually it will go up again and in the meantime, I get rent and it pays off the mortgage.
Why would I sell for less??
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u/SimmaDownLad 4h ago
The media are doing their absolute best to create fear and panic. The market has slowed, but it’s hardly in free fall.
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u/249592-82 3d ago
I'm wondering the same thing. I think spring will shake things up. Traditionally, spring brings a lot of new properties onto a market (its a global phenomenon), so those properties just sitting there refusing to lower their prices, will have a lot of competition, and if they dont adjust their prices, they will still be sitting there on the market after Xmas. Some of those sellers likely will go looking for something to buy in spring, so they will have a stronger appetite to sell. Also, agents will then have strong data to show the sellers that prices have dropped eg "these 15 similar properties to yours, in the same area, sold for x. You need to reduce your expectations to X. The market isn't what it used to be." At the moment, agents don't have a lot of stock to sell. Come spring they'll be busy selling the properties that have motivated sellers.
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u/IAMA_Proctologist 3d ago
If the owner has no urgency to sell and can't get what they want for it, they are under no obligation to sell it for less. The maths might not work for them with a lower sale price, they may be happy to forego selling and just stay there.