FOMO When It Comes to Buying Houses at The Moment?

iNeed2Pee on 20/02/2021 - 15:51
Last edited 20/02/2021 - 15:51

Saw a couple of houses today.

Looking at buying our first home and have been looking for about 4-6 months in the South Eastern suburbs of Melbourne. (Covid has impacted our house searching somewhat- I am back to casual but still earning good money)

In the last 3 or 4 weeks in particular, houses that we have seen at say 10am inspection times have had offers on them the same night!!!

What the hell is going on? Do people have a fear of missing out at the moment….

Yes, we really want to buy a house but some of these properties have legit been unbelievably bad and in need of heaps of work.

I am not trying to be picky but an example I will give you.

"Another buyer walked in the same time looking at a property. In there for the same amount of time as myself, didn't check anything just eyed it down, we both happened to walk out the same time and he said to the agent he was really keen and wanted to put an offer in asap".

I was perplexed. Each to their own I get but wtf is happening!!!

I am very easily losing motivation at the moment.

Home & Garden

Comments

        • Grunntt on 23/02/2021 - 21:49
          +4

          <1% of property investors translates to less than 0.068% of the total population of Australia owning 6 or more properties.
          The number owning 8 or more would be extremely small so I guess the chances of one or more of them being the cause of the number of times it has happened recently to the OP is pretty unlikely.
          Feel free to use exaggerated numbers to make your point but, as I said, they do not have anything to do with reality.

          • Ghost47 on 24/02/2021 - 00:53
            -1

            @Grunntt: Where exactly did I use exaggerated numbers?

            Did you realise in your figures that over half of the investment properties owned are by people who own more than one? And that is setting the upper limit at a maximum of 6 (not "or more").

            I guess I should just say "Property investors." then, seeing as, by your figures they own at least 3,000,000 houses in this country.

            • Grunntt on 24/02/2021 - 10:41
              +4

              @Ghost47: Exaggerated figures such as "Property investors wanting their 9th property."
              No data that I can find relates specifically to investors with more than 8 properties so I feel safe in saying you pulled that number out to exaggerate your claim.

              Play with stats as much as you like - easy to do the same to support my claim - 90% own 2 or less properties. ie 10% own more than 2.

              BTW it may be worth checking your calculations (418,000+129,784+47,469+19,861+20,756= 635,870)

              A total of 2,205,870 properties owned - can't see how you came up with 635,870 being over half of 2,205,870

      • sweetchilli on 24/02/2021 - 22:59

        Crazy to think I work with someone that holds 6 investments and owns his own house.

  • MilkDrinker on 20/02/2021 - 16:22
    +2

    Who knows maybe being stuck inside their homes made people want more space to move around, hence the exodus to larger cheaper houses in outer suburbs? Maybe also a money saving measure since they lost their job and had to go on jobseeker?

    Everyone is also mentioning the really low interest rates right now. So a mortgage costs a heap less, though who knows how long that's gonna stay.

    I hear that rental vacancies have taken a heavy hit in cities though, like ~10% so locking in a new 1-2 year lease might be a good idea while you save up the cash for a bigger deposit.

    BUT I could be completely wrong and the FOMO or immigrants/jobs coming back after covid is finished will keep real estate prices going up, so you will have to make your own responsible financial decision for your future.

    • nikey2k27 on 23/02/2021 - 09:09

      lots of it people want more space learn City maybe not good as once was i know people move from mel back to Queensland.

  • Drakesy on 20/02/2021 - 16:22
    +32

    Let the investors play.

    It's amazing even with the immigration taps turned off there's still fire in the property market.

    Next up On Frydenburg's latest magical act, controlling inevitable inflation, with increasing house prices while wage growth is next to nothing and trying not to decrease the standard of living.

    It's a tad cooked.

    • Gnostikos on 20/02/2021 - 17:18
      +3

      Next up On Frydenburg's latest magical act, controlling inevitable inflation, with increasing house prices while wage growth is next to nothing and trying not to decrease the standard of living.

      RBA: It's time to print money and lower interest rates, and we've already lowered interest rates…

      • Drakesy on 20/02/2021 - 17:28
        +9

        Precisely
        I'm not even sure if the treasurer knows that disposable income and house prices are almost directly related. Australia isn't spending on the economy, australia is racking up debts for blocks of land for the privilege to live/invest in. Unless its a new house there's zero value added.

        • ribze1 on 22/02/2021 - 21:20
          +3

          Which is why we were in a per capita recession 6-9 months before COVID hit.

        • greatlamp on 23/02/2021 - 08:08

          The problem is interest rates are lowered to support the economy, and the effect on the housing market is a side effect.

          Housing becoming unaffordable doesn't even factor in.

    • spammingb on 21/02/2021 - 20:31
      +1

      So what will happen when the immigration tap gets turned on again?

      • User102430 on 22/02/2021 - 21:37

        It won't any time soon, or without significant revision of our anti-covid strategy.

        I have some mates working on vaccine research and they shared way less optimism that is currently going through mainstream media.

        Example: Australia's approach to Covid is complete suppression, which means smallest outbreak equals lockdown. Best vaccines are only 90-95% efficient. That means, for every million arrivals, there still can be thousands potential carriers of the virus. Now, check the statistics how many people used to come to Australia - there were 9 millions of tourists only coming over here every year, go ahead and calculate how much of it is 5-10% yourself….

        So, we either accept life with the virus (which I suspect we won't, as lots of people will oppose it), or we remained locked down for quite some time… Not sure how long property investors can live with empty flats/houses.

        • webtonmoy on 22/02/2021 - 23:39

          In my understanding, vaccines work by creating herd immunity, so that those 5% do not get in touch with enough people (that belongs to the same 5%) to keep spreading the virus.

          • User102430 on 23/02/2021 - 09:07
            +1

            @webtonmoy: Yes, but this process will take years…. now think about property investors and how much time they have?

            • webtonmoy on 23/02/2021 - 13:52

              @User102430: Australia aims to vaccinate the population (who wants it) by October this year. I am pretty much sure that they will only allow incoming visitors who either took the vaccine or stays in quarantine for 14 days. That way, I think we should experience herd immunity within 2021 here in Australia.

              • mr_asstight on 23/02/2021 - 19:02

                @webtonmoy: The vaccine doesn't actually prevent COVID. It only lessens the symptoms by manipulating your immune response by mRNA tech…so kind of moot vaccine or not there's no real vaccination going on here.
                But hey population needs culling.

                • webtonmoy on 25/02/2021 - 18:39

                  @mr_asstight: Even if that is the case, it works fine for me. With vaccination, Covid then will come down to the level of common flu. It will infect and go away without seriously hurting many people or crashing the medical system's capacity.

    • dufflover on 21/02/2021 - 23:48
      +5

      Let the investors play.

      That's my mindset. I'm paying off a place which I think will work ok for the rest of my life, not interested in buying into a Ponzi scheme and worrying about living with a big loan longterm.

      I would not pay the amount that's on my council valuation that's for sure. It's magically gone up by a ridiculous amount without me doing much to the place. That's how screwed this country is with its obsession with paper wealth over real things like manufacturing or other productive stuff.

      I mean FFS this Government sees nothing wrong with entire industries like seafood, barley, wine, education, beef, etc. etc. all completely dependent on foreign money (much like property and the rich Chinese buyer).

      That said even though I'm refusing to play I still would like to see the day property isn't some cash cow thing. The sooner the top of the ponzi pyramid gets cut off the better. The speculators won't have a reason to buy anymore.

      • duchy on 22/02/2021 - 10:38
        +1

        We have buying power of 24 million. That’s not much. Of course export is the only way to go. The fact these companies were lazy to diversify outside of China is their own doing.

      • Jules_d1 on 22/02/2021 - 13:06

        "I would not pay the amount that's on my council valuation that's for sure. It's magically gone up by a ridiculous amount without me doing much to the place. "

        • It's not really about what you have done to improve its value, its about what similar houses around you have sold for recently.
    • netjock on 22/02/2021 - 10:33
      +4

      Yup.

      3 years of low interest rates and people go out to sign for 30 year mortgages.

  • soan papdi on 20/02/2021 - 17:10
    +51

    Every time house prices are discussed, the first reason mentioned is immigration. There has been almost zero immigration in the last year. The market right now is evidence that immigration is not a major reason for the price rise. I hope people realize that cheap credit and the government's "helpful policies" are why we are in this bubble.

    • iNeed2Pee on 20/02/2021 - 17:12
      +7

      And when will this bubble burst?

      When I purchase a property 100k over the estimate because I turn into the rest of the sheep.

      • soan papdi on 20/02/2021 - 17:17
        +17

        Australia has no major industries left. There's mining, education and housing. IMO there is no way any government, state or federal, will intentionally let prices fall. See Bill Shorten's terrible loss last elections after proposing to eliminate negative gearing.

        • iNeed2Pee on 20/02/2021 - 17:21

          Im not necessarily waiting for prices to drop.

          I am just wanting peoples impressions on the fomo at the moment. It's disheartening because most times the agent has told me its there 2nd or 3rd investment property.

          • soan papdi on 20/02/2021 - 17:25
            +5

            @iNeed2Pee: That's because of cheap credit. Which fuels price rise. Which justifies the practice of cheap credit. Which fuels price rise. Which justifies the practice of cheap credit … .

            • iNeed2Pee on 20/02/2021 - 17:26
              +2

              @soan papdi: Probably explains why they also dont give a shit what the house looks like because they will be renting it out to someone who needs it!

            • Donaldhump on 23/02/2021 - 17:29

              @soan papdi: until inflation rapes goes insane

          • Ghost47 on 20/02/2021 - 17:32
            +1

            @iNeed2Pee: The market is usually hot at this time of year from what I’ve heard. Don’t worry too much.

          • duchy on 22/02/2021 - 10:39

            @iNeed2Pee: You’re one of the buyers though. The others probably think the same … now or never.

        • Drakesy on 20/02/2021 - 20:19
          +10

          Yep its the very large elephant in the room that no one wants to address because its a guaranteed election loser.

          After telling everyone that the australian economy is so strong only for it to be built on a house of cards. We're headed the same way japan was 30 years ago, and they're still not out of it

          • Ghost47 on 20/02/2021 - 21:13
            +3

            @Drakesy: I read an article yesterday about Japan’s economy and was actually wondering if we could go that way too. Pretty scary stuff.

            • wingy3181 on 21/02/2021 - 08:39
              +1

              @Ghost47: @Ghost74 what was the article by curiousity

              • Ghost47 on 21/02/2021 - 14:49
                +1

                @wingy3181: Here you go. It’s an opinion piece.

                • Drakesy on 21/02/2021 - 21:15
                  +3

                  @Ghost47: Just had a read of this.
                  Good find
                  Lots of similarities with our situation

            • greatlamp on 23/02/2021 - 08:11
              +1

              @Ghost47: We have population growth that japan doesn't have, even without immigration. Houses are going to keep going up.

              A subclass of wealthy property owners can keep prices inflated indefinitely.

          • Viper8 on 23/02/2021 - 15:02

            @Drakesy: Absolute rubbish.
            Japan = decades of population decline and shrinking of their once great manufacturing sector to emerging Asian nations.
            Australia = decades of population growth (which is forecast to continue well past 2050) and a resources sector which is stronger than ever.

            • Drakesy on 23/02/2021 - 15:30
              +3

              @Viper8: Before you get carried away with population decline.

              Lets break it down, population decline is a lagging indicator of families that are financially struggling. In Japan the mortgages were taking up such a large proportion of the household income that people started to choose between a house and additional children.

              Australia's organic population growth has been in a steady decline in turn with the ever increasing cost of living (less people having babies due to lack of disposable funds). The only thing propping it up are record immigration rates.

              Per capita our economy has been shrinking pre-covid and will continue to post covid. Overall however our economy is growing purely due to importing people. Iron ore is only going to be at current levels until Brazil comes back from covid. When Africa comes on line in 2-3 years then the price will normalise if not drop considerably and Australia will be high and dry due to our lack of secondary industries.

              Yes the government can continue to import people but it's not sustainable in the demand it places on existing infrastructure and land uses. If employment levels/wages don't grow then you'll end up with a very frustrated population.

              Not quite the rubbish you suggested.

              • Viper8 on 23/02/2021 - 15:35
                +1

                @Drakesy: Your first 2 paragraphs confirm Australia's population growth and therefore demand for additional housing and therefore rising house prices. How it occurs is less important than the fact that it's occurring.

                As for your 3rd paragraph: I happen to work in the iron ore industry as a professional, and have done so for some time. What you've said is somewhat true, but exaggerated. Yes iron ore prices will eventually settle at about one third of where they're at today, but that still translates to ~100% profit margin for the big 3. The boom time will be over, yet iron ore will remain the backbone of our national economy. Based on current figures, the big 3 can each maintain current production for another ~90 years.

              • Ghost47 on 24/02/2021 - 01:21

                @Drakesy: Good comment that didn't look at one facet of the argument without considering other aspects.

                I only have anecdotal evidence but from what I've read online it seems as if people these days are actually having to decide to have less or no kids just to be able to afford a place..

                This sort of decision is very strange to see in the first place, and IMO is an indicator something is very wrong already. I think you're definitely right about immigration propping up our population.

                After reading a few sources from Google (APH, ABS, ABC News etc.) it does seem that >50% of our population growth is due to net overseas migration (i.e. discounting Australians who have left).

        • goingDHfast on 21/02/2021 - 11:58
          +2

          There's mining, education and housing.

          Fair to remove education from that list now. As a profitable industry it relies on international students and we told them to go home last year. At least we can still dig dirt and buy real estate.

        • nickj on 22/02/2021 - 16:14
          +2

          Re: "Bill Shorten's terrible loss last elections after proposing to eliminate negative gearing."

          I think if Shorten had not tried to do anything with franking credits (his biggest mistake, especially not grandfathering the changes), had not proposed the big cancer spending program, and had just said "we need to eliminate negative gearing on existing properties because it's created a structural problem that has made housing unattainable for so many people", then he could very well have got in. IMHO, it was the conflating the other issues that really worked against the ALP, and created a perception of class warfare, and that's what people voted against, so I don't think it's as simple as concluding that negative gearing is politically untouchable.

          • Drakesy on 23/02/2021 - 15:25
            +2

            @nickj: Yeah, i feel it was the franking credits which sunk his ship, oh and Shorten himself.
            I'd agree that negative gearing isn't quite the election killer that people thought it was.

      • TheBilly on 21/02/2021 - 01:08
        +6

        Never… When you can buy just buy. Unless you are planning to day trade property, don’t concern yourself with momentary hype and ups and downs in prices. Property is a 15-30 year hold. So if you like something and you want it and you can afford to pay, offer more than everyone else and buy it.

        • iNeed2Pee on 21/02/2021 - 01:37

          Yeah, im gonns change my attitude and stop seeing what others do and why they do it.

          I got too caught up lately in that regard, I am sure you agree, sometimes you just get sucked in.

          Thanks for your comment

        • Bargain-er on 21/02/2021 - 08:15
          +1

          I replied this comment but got unshown so take two: Be picky in term of location and things you can't change. Not on main road, near hiway, etc. Initially we wanted a move in quality house in good location but to be freaking honest, the last 2 weeks price had gapped up 100-200k since 2020. Bizzare and i blame it to the stupid comment saying super ultra low interest for 3 years and media started to spur housing boom. May be it's just me not liking some particular ppl who like to make stupid comment in public. Anyway, we finally sacrifice the move in quality part but bought in an amazing location and great floor plan. Bidding was fierce and renovation will set us back 50-70k but this would be our home for years to come. No one knows what's gonna happen with property market. Atm, cash is cheap everyone wants a home while immigrants and investors are still out. I know i am too getting a FOMO… kinda ouch looking at houses sold some months ago for 100k less but… oh well.

    • qvinto on 21/02/2021 - 13:14
      +7

      Migration is a problem. There are different factors that can increase demand. One is migration, the other is low interest rates. The current low interest rates have replaced migration as a key driver. When migration resumes and low interest rates continue, you will have an even higher demand

      • soan papdi on 21/02/2021 - 13:32
        +1

        I clearly said migration is not the primary reason. Didn't discount it completely. It's cheap credit that's the problem. Even if interest rates were higher (as they were 7-10 years back), prices will continue to grow like crazy.

      • TheCutter on 21/02/2021 - 16:20
        +9

        The government have always made it clear they will bankrupt the country to prop up house prices. Its their religion.

        • Bargainz on 21/02/2021 - 23:45
          +2

          Indeed, also in their interest. Just take a look at how many politicians own investment properties its not just a religion its a trough

      • vroomkroom on 22/02/2021 - 06:41

        I am guessing 90% of the migrants come here for a better life i.e, they are not cash-rich. One developer has quoted when the country opens up there will be migrants lining up to come here and it seems like these guys are building houses to rent for them.

    • cannedhams on 21/02/2021 - 14:24
      +11

      Here's a link to a reasonably new semi-detached house you can buy in Japan, a seven minute train ride from Yokohama Central Station (a city the size of Sydney).

      For $132,000 AUD. https://realestate.co.jp/en/forsale/view/787116

      Interest rates have been practically negative in Japan for decades. So clearly that's not the difference.

      The difference is that Japan's net migration intake is one-twentieth the size of Australia's.

      • soan papdi on 21/02/2021 - 14:53
        +1

        Japan's population is also 5 times Australia's! I can't tell if you're supporting my argument or not. From what I understand, Japan's net inward migration rate was even lower 30 years back, when their real estate bubble blew up. Wikipedia has a few causes listed for the Japanese Asset Price Bubble and some of those ring true for us too
        - complicated laws related to land which allow for manipulation and speculation
        - low interest rate
        - massive loans that banks were willing to approve as long as property was used as collateral

        Firstly, cheap and easily available loans reduced the funding costs for the purpose of speculation.[32] Second, stock rises, coupled by low interests rates, reduced the capital costs and aided financing the capital market (e.g. convertible bonds, bonds with warrants, etc.).[32] Third, the combination of a rise in land and stock prices pushed up the value of assets held by corporations, which effectively increased their sources of funding since such these increased the collateral value of the assets.

        Cheap credit causes price rise, which justifies the use of cheap credit.

        • john71 on 21/02/2021 - 22:01
          +2

          Hush now.

          People want simple solutions for complex problems. Stop muddying the waters with your rationality, nuance and data-driven analysis.

        • cannedhams on 21/02/2021 - 22:45

          The Japanese property bubble was the tail end of the most staggeringly rapid wide scale industrialization of any state, ever. Japan went from a feudal state whose warrior caste were firing bows and arrows at each other to the world's second largest economy within a single century. It was inevitable that its economic growth would peak at some point and that thereafter its asset bubbles would deflate.

          From the NZ reserve bank:-

          "Net migration changes are consistent with large housing effects. An additional net inflow that adds 1 percent to the population causes an 8 percent increase in house prices over the following three years and an additional house is built for around every six migrants. This is materially more than the existing number of people per household in New Zealand (around 2.5).

          When net migration is split into arrivals and departures, arrivals appear to have had bigger house price effects than departures. A 1000-person increase in monthly arrivals raises real house prices by 4 percent, whereas a 1000-person fall in monthly departures raises real house prices by only 2 percent. This is consistent with the additional finding that changes in New Zealand-citizen migration have had smaller effects than changes in foreign-citizen migration.

          The origin of foreign arrivals also appears to have mattered. A 1000-person increase in monthly European/UK arrivals raises real house prices by 8 percent after 2 years, whereas a 1000-person increase in monthly Asian arrivals raises real house prices by around 6 percent."

          https://www.interest.co.nz/sites/default/files/RBNZ%20migrat…

          I would add that both New Zealand and Japan, to varying extents, suffer from some extent of secular land shortage. Australia by and large, does not. The suburb where I live was mostly cow paddocks ten years ago, and there are still plenty of them around.

          • soan papdi on 22/02/2021 - 11:21
            +2

            @cannedhams:

            The Japanese property bubble was the tail end of the most staggeringly rapid wide scale industrialization of any state, ever. Japan went from a feudal state whose warrior caste were firing bows and arrows at each other to the world's second largest economy within a single century. It was inevitable that its economic growth would peak at some point and that thereafter its asset bubbles would deflate.

            This is another way to say Australia is special and that we don't have a bubble. Like you yourself said, Japan has shortage of livable land. However they also have a large population (125m) which is capable of sustaining house price growth even without any immigration.

            I had a quick look for stats. The first spreadsheet in this Australian Migration Statistics page says the net inward skilled migration count for 2019-2020 is 95,843. The media tends to talk about the large inward migration numbers while lumping together overseas students (most of whom are living month to month, like I was many years back) and refugees (who rely on government handouts for the first several years to settle down). How much is that in terms of percentage? It's a mere 0.38% (96k/25m)!

            An additional net inflow that adds 1 percent to the population causes an 8 percent increase in house prices over the following three years and an additional house is built for around every six migrants.

            So if we linearly drop growth rates, 0.38% should cause 3.2% over 3 years. What we see is more like 5% (or more) per year. Like I mentioned at the start of this thread, immigration is a cause but NOT the primary one and the governemnt should stop using it as a scapegoat.

            • cannedhams on 22/02/2021 - 22:13
              +2

              @soan papdi: I am not sure why you are counting only skilled migration. Family stream migration carries the 2020 total to around 152,000 migrants, still a big decrease from 270,000 in 2019. Its predominantly been over 200,000 migrants a year since 2006:-

              https://www.abs.gov.au/statistics/people/population/migratio…

              So the real net inflow (pre-Covid) is at least double your calculation (and close to the 1% net inflow that produces the 8% increase over 3 years alluded to in the NZ analysis).

              Essentially, net migration alone is more than capable of driving 5% appreciation in property prices year-on-year.

              The Japanese population is moribund due to low migration and sub-replacement fertility rates. It doesnt matter how big the population, if numbers are decreasing then property prices will decrease with it. In more provincial areas, local councils are offering houses for free simply to save themselves the cost of demolition.

              https://japantoday.com/category/national/owner-of-4-derelict….

              • soan papdi on 23/02/2021 - 10:49
                +3

                @cannedhams: Great discussion. You've raised some fair points and I have to read up more on this subject.

                • Ghost47 on 24/02/2021 - 01:25
                  +2

                  @soan papdi: Yes some of the comments here are pretty good. Well done OzBargain.

                • cannedhams on 24/02/2021 - 08:28

                  @soan papdi: I should have added, the tax treatment of property is different in Japan (it has to be, transaction volumes are so low that something like transfer duty just isn't viable so Japanese municipal governments rely more on property taxes instead). That obviously affects how attractive property is as an asset class. NSW is starting to move the same way, so I suppose we will see where that goes. Its obviously much fairer to tax all residents rather than just sock it to new buyers by imposing infrastructure charges and transfer duty.

                  Also, the lifecycle of Japanese housing stock is often shorter due to earthquake codes being constantly updated.

                  Still I think the comparison is worth thinking about. Thanks for the discussion.

              • Bargain-er on 23/02/2021 - 16:24
                +2

                @cannedhams: This is very correct. Population decreases then price will go down. To Asian buyers (Chinese, HK, Indonesia, etc.) Australian properties are still deemed to be cheap. I'm not a property bull but 2020 was a proof that we have lack of supplies and how government won't let housing market fail. Mortgage holiday, deferral, CBA said they won't allow foreclosure (not sure how true).

                • cannedhams on 25/02/2021 - 01:15

                  @Bargain-er: The CBA has been writing mortgages with its eyes closed for twenty years. I've no doubt they will do everything they can to avoid mass firesales. Which I dont see happening anyway. The ingredients are not there for a precipitous decline. Not yet anyway.

                  In the long term, the decline in fertility rates poses a problem. The countries with property bubbles have all witnessed this - Canada's fertility rate is down to 1.50. Thats almost South Korean territory. Australia is seeing a decline in fertility rates of about 0.5% each year. If that continues, no amount of migration (practically speaking) is going to stem the tide. In fairness, Japan and South Korea have the same problem - its not just expensive housing, its the general financial precarity affecting the young.

    • netjock on 22/02/2021 - 10:36
      +1

      They will have the magic immigration tree. Shake it and people will fall out.

      Immigration is a marketing lie. If I had a dollar for everyone person telling me that every immigrant is buying with cash or magically get a big loan without a credit history or proof of income (without lying about it) then I would be a millionaire.

    • [Deactivated] on 22/02/2021 - 12:43
      +1

      Migrants take some time to enter the property market. We can't just come as a student and buy a property outright. The migrants buying right now most probably came 3-5 years ago. To see the effect of covid, give few years. Covid having effect on rental market is different though.

      • cannedhams on 22/02/2021 - 22:35

        Exactly.

        2020 was a substantial decrease from 2019.

        2021 will be a net migration decrease, the first since the 40s.

        2022 is still an open question. Numbers will rebound, but by exactly how much? Even returning citizens are being told they need to wait up to six months for a plane flight at the present time.

  • elgrande on 20/02/2021 - 17:21

    The market in Sydney is starting to warm up at the moment too.

  • cuteduck on 20/02/2021 - 17:43
    +1

    Melbourne's property market needs to catch up with the rest of Australia. The comparison price that agent used is 2019/2020 data, hence underquoted. Bull has and will run to catch up with the rest. The best time to buy was 2019.

    • iNeed2Pee on 20/02/2021 - 18:14
      +17

      The best time is every year according to different sources.

    • soan papdi on 20/02/2021 - 18:31

      LOL are you saying that agents don't have access to data from the last few months? You really expect the public to believe that agents are working with old data to propose price estimates?

    • netjock on 22/02/2021 - 10:37

      Using relativity then Australia and NZ should have the same living standards as PNG and Indonesia.

  • p1 ama on 20/02/2021 - 18:22
    +1

    Some people might just need to pee more than you do. That's all.

    • Donaldhump on 20/02/2021 - 20:38

      I make sure I use every toilet at an open home.

  • pharkurnell on 20/02/2021 - 18:34
    +2

    What the hell is going on? Do people have a fear of missing out at the moment….

    your missing out yourself, what do you think others are doing…

    just going thru divorce and went into agents in Langwarrin today - they all creamed their pants when I said I want them to come price my house for selling. Most had everything in the windows wiht SOLD stickers on them… Hope mine sells that quick so I can buy again with the pittance I get after lawyers and courts.

    • iNeed2Pee on 20/02/2021 - 19:30

      Hope things work out with you going forward.

      You want to sell cheap? 🤣

  • dizzle on 20/02/2021 - 18:40
    +2

    I'm looking in Brisbane at the moment and finding demand is greater than supply. I turned up to one this morning that had about 30 people waiting at 9:00 before the RA had arrived.

    I'm also finding most real estates are offering it to their databases before doing open houses (in the hope of selling it and not having to advertise it on realestate.com/domain. About a third to half the open houses I've turned up to in the last 2 months are already under contract when they do the first open home (so annoying).

  • [Deactivated] on 20/02/2021 - 18:42
    +2

    Do people have a fear of missing out at the moment….

    Yes, yes, yes. It is FOMO all the way. With a little government help and a lot of media hype.

    The fact is that there are still a lot of households out there on mortgage payment holidays. These are people who literally cannot afford to continue living where they are. Soon enough they will be forced to sell and they better hope they're one of the first before the market dumps from oversupply.

    • OzFrugie on 20/02/2021 - 22:18
      +4

      Would love to see it but banks will prob offer more extensions and help

      • stumo on 21/02/2021 - 14:02

        Yep no bank is going to suddenly pull out a bunch of cards from the bottom of their massive house o cards.

    • Drakesy on 21/02/2021 - 01:16
      +6

      Yep, doesn't help that Murdoch owns Realestate.com, domain and just about every other tabloid.
      It's one be positive feedback loop.

      He really has done a number on australia

    • Bargain-er on 21/02/2021 - 08:28
      +1

      Not sure how many percentage are in mortgage holiday but cba said they won't allow foreclosure and media says it's very small number. If we re talking house and land within 15kms from cbd, i haven't seen oversupply for my years and years in Melbourne. Jobkeeper is 1200 per 2 weeks and jobseeker reduction won't be big enough to dent the market. Pandemic and recession didn't do much. Only when 2018/2019 when APRA curbed lending, the market went down. I missed the 3/2020-9/2020 window when property cooled off because of Covid hoping it will go down more. Now, I'm paying the price.

      • iNeed2Pee on 21/02/2021 - 12:08
        +1

        Many of us will probably be paying the price unfortunately!

        Not those who have 8 investment homes though and continue to hoard property.

        Sometimes it feels like quicksand in this city, but as others have pointed out, it definitely isn't just Melbourne atm.

  • Euphemistic on 20/02/2021 - 18:43
    +2

    FOMO drives up prices. People think they need to buy now because it’ll cost to much later.

    Rising prices drive FOMO.

    When everyone has access to cheap money things go a bit crazy.

  • ihbh on 20/02/2021 - 18:45

    FOMO When It Comes to Buying Houses at The Moment

    This can only end up in grief.

  • JimmyF on 20/02/2021 - 19:29
    +2

    What the hell is going on?

    NFI But its crazy!!

    Do people have a fear of missing out at the moment….

    It appears so. Not sure how/why during a pandemic all these people got cashed up to buy, but clearly they have!!!

    • iNeed2Pee on 20/02/2021 - 19:36
      +7

      Burns me, We have saved up heaps in savings.
      I have worked since I was 14, worked hard.

      We have saved well. Over 25%.

      When I lost my hours last year, wasn't entilted to jobkeeper, and I know of at least 5 people who double dipped and got jobkeeper and other wages.

      At the moment I've become a bit bitter, not my intentions but im slowly getting better.

      Ive noticed low stock and massive demand atm.
      I guess that's the way the cookie crumbles, but I'm not keen in buying in a shit house paying 750k, just to "get in".

      Might be my downfall, but I know eventually hopefully the right one comes up and I pounce.

      • soan papdi on 20/02/2021 - 19:47
        +4

        That's exactly my story too. I was a property bear for 10+ years. Gave up hope in 2016 and got a townhouse. My advice would be to get in the market with a house that's not your dream but ticks at least most major points in your wishlist. Give preference to location and stay within your budget. Keep saving and in 5 years when your current house appreciates, you can upsize, knowing that there's no rush to move.

        • iNeed2Pee on 20/02/2021 - 19:48
          +1

          That's exactly what we are doing.

          We don't expect the perfect home to come up and if it does, we know others will also go hard for it.

          We are just wanting a property that ticks the boxes and to live in our first home 5 years + as you said.

          Thanks for your comment, appreciate it:)

        • JIMB0 on 21/02/2021 - 09:33
          +4

          Same here. Held out for many years waiting for the crash. Last year I figured if a global pandemic won't crash it nothing will. The government will throw everything at it to keep prices up.

          Found a place that needed a bit of work, vendors keen to sell (suspect financial pressures) and put in an lowball unconditional offer. Bit of back and forth before we agreed on a good price.

          Now the market is crazy. I don't think there are too many motivated sellers around now, but plenty of motivated buyers. So the odds of getting a good deal are low. Perhaps when jobseeker/jobkeeper ends.

          • stumo on 21/02/2021 - 14:04

            @JIMB0: Are you me? lol.

          • acersaurus on 22/02/2021 - 13:00

            @JIMB0: Agree they will throw everything at it, but eventually they will run out of everything. The most potent thing is interest rates, no more room to move there. Will be interesting to see where the market is at in 3 years.

      • Sunproof on 25/02/2021 - 14:47

        Going through the same thing on the Sunshine Coast, definitely hard not to be bitter. Low stock seems to be the cause here. Impossible to buy, even harder to rent. First home buyers here get pushed out to tiny blocks of land where no one wants to live, they will take 10yrs to show any increase in value.

  • outlander on 20/02/2021 - 19:35
    +4

    Are houses going up, or is the value of money going down?
    Hard to tell.

    • Gnostikos on 20/02/2021 - 20:36
      +10

      Why can't it be both? cue Mexican Mariachi music

    • acersaurus on 22/02/2021 - 12:57

      Well it is going down relative to houses, however the government does not include the cost of housing in CPI figures.

      • BartholemewH on 23/02/2021 - 23:14

        That sounds convenient for the government.

  • Indomietable on 20/02/2021 - 22:45
    +4

    People bought too much toilet paper, need somewhere to store it

  • neo on 20/02/2021 - 23:56
    +2

    Let's see if there's any change come end of March when Jobkeeper ends. But yes, this is usually the busiest time of the year, especially since the lockdowns last year put everything on hold.

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