I believe it is because people are scared to make quick decisions that could end up in them paying too much for a property and therefore over committing themselves.
But this really has not stopped people paying extra ordinary prices for properties that just seem not worth it.
I sold a property at auction that was located at Old Toongabbie. It had easement issues and we ended up selling that property for $30,000 over the reserve price. Another property I sold in late July sold for $75,000 over the advertised price.
These two properties are now the exception not the rule. We have found that generally properties are taking between two and four weeks to sell and most people now are no longer willing to pay more than the market would indicate.
This last weekend I saw that auction clearance rates are down under the 80% mark around 78% and this is a clear sign of slowing market.
It was also announced that some of the bigger banks have either withdrawn from the investor market or increased the interest rates for investment loans.
This will no doubt slow up the investor market and should bring some normality to the property market in Sydney.
I also found it quite interesting to see that there is still such a good opportunity for properties to be purchased under $500,000 in areas such as Mt Druitt and surrounding suburbs when the medium price is Sydney is now $1,000,000, so keep searching and do not be in a rush.
Take your time to think about the property and if the property will meet your needs. Make sure that due diligence is in place so that you do not pay any more than you should for a property and when buying an investment in particular make sure your emotions do not get in the way of a good financial deal.
I am happy to have an obligation free chat with you to help clear the muddy water of property purchasing and you can call me on 0401 461 195 to arrange that.
Also to note that as of the end of August 2015 I will be hosting a one hour Real Estate Show on community radio Alive 90.5fm on a Friday evening between 6pm and 7pm so I hope you can tune in.
