The choice vendors face in a falling market

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Conditions are changing fast for owners wanting to sell. But there is an extra dynamic in the market right now.

A three-bedroom, one-bathroom terrace house at 57 Liverpool Street, Paddington, NSW. Sold before auction for $4.15 million.

These people, because they wanted to upgrade, were willing to say: “We’re not going to take the risk; this is a fair price, we’ll move on.” This was a short settlement [in May] – four weeks. In hindsight, I don’t think I could get that price back today. They’re going to the north shore and trying to buy something in the next bracket up.The percentage loss is across the board in a declining market. They’ll actually lose a little on the property underneath but gain more on the property above.

A lot people in Paddington don’t have to sell. They don’t have mortgages, or they haven’t purchased anything, or it’s surplus property. Tomorrow. Every single one will be like this. This is for the foreseeable future –this is the decision vendors now have to make. They’ve been in charge for so long. The buyers have had no power whatsoever. The buyers know they’ve got the power now. Time’s on their side.

 

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