NZ 1st homebuyers are ScReWeD...

[arco]

Things must be pretty bad to get to this price level


http://www.zillow.com/homedetails/photos/11453714_zpid/

[arco]

I have a friend in the US who just purchased a nice property near his home for $35,000 cash and is getting 14% rental return........now that more like it.

Even Cheaper......................for $19,000
3 beds, 1.0 baths


21 Mckinnie Ave Mc Kees Rocks PA 15136


http://www.zillow.com/homedetails/21...40478905_zpid/

[lakedaemonian]

I have a friend in the US who just purchased a nice property near his home for $35,000 cash and is getting 14% rental return........now that more like it.

Even Cheaper......................for $19,000
3 beds, 1.0 baths


21 Mckinnie Ave Mc Kees Rocks PA 15136


http://www.zillow.com/homedetails/21...40478905_zpid/

Median income for that area is only approx HALF the state average, which would put that house at a bit less than 1x annual median gross wages.....


If that home were within spitting distance of say University of Pittsburg it would probably sell for 5-10x that price.

Just my 0.02c

[lakedaemonian]

Our old beach house up the street closed a month ago.

We sold at 98.5% of asking price(a quite reasonable and fair one in my opinion...a "win/win" for all )

I think the buyer has SERIOUS buyer's remorse......since it went unconditional in November some of the other sellers in this great wee suburb have been starting to display signs of seriously "dropping their pants" on price...some houses on the market for 6-9+ months and going nowhere.

She keeps dropping nasty notes in our letterbox about mail redirects that are the problem of NZ Post.

There have been only 3 known completed sales in our suburb in the last 6 months....2 of the 3 being the house we sold, and the home we purchased.

We just recently held our first two BBQs at our "new" home...lots of fun had by all, but I now have several months worth of wine/beer bottles to recycle

[Serpie]

Good work Lakedaemonian,

We've sold 2 (we hope) in the last couple of months.

First one sold at the asking price within 10 days, and we also got a back-up offer at the asking price. Has confirmed.

Second one was under offer within 7 days by the first person that looked at it. Within 2% of asking price. To be confirmed soon (again, we hope).

Both due to settle before the end of January.

I've got another couple that we didn't price as aggressively (because I'm not bothered of we sell them or not at this stage) and they're still sitting there.

If people really want to sell they can sell most standard houses quite easily I believe. Stuff that's a bit out of the ordinary may take longer, because it's a specialised market, but other than that it just comes down to motivation.

[lakedaemonian]

Good work Lakedaemonian,

We've sold 2 (we hope) in the last couple of months.

First one sold at the asking price within 10 days, and we also got a back-up offer at the asking price. Has confirmed.

Second one was under offer within 7 days by the first person that looked at it. Within 2% of asking price. To be confirmed soon (again, we hope).

Both due to settle before the end of January.

I've got another couple that we didn't price as aggressively (because I'm not bothered of we sell them or not at this stage) and they're still sitting there.

If people really want to sell they can sell most standard houses quite easily I believe. Stuff that's a bit out of the ordinary may take longer, because it's a specialised market, but other than that it just comes down to motivation.

While I am the eternal optomist(which you sound like yourself), I can't help but note CLEAR indications of a dramatic shift in the RE market in Christchurch in the past year......most definitely in our suburb.

Commercial Real Estate has nearly frozen as well.........our last commercial property that we have been marketing for the better part of this year(blue chip, recently refurbished retail) has gone from reasonable-ISH offers, to cheeky offers, to insane lowball offers.

VACANT commercial RE inventory is PILING up very quickly in Christchurch.

I'm now receiving about 4-5 unsolicited commercial real estate offers a week.....as well as unsolicited angel funding "opportunities".

Keep your eye on Pegasus Town Village just north of Christchurch.

[arco]

Interesting area by area.

We are on the Hibiscus coast and I've noticed in Orewa prices don't seem to have dropped that much. A basic older 3 bed bungalow without sea view but within walking distance of town is still in the high 300's/early 400's. (one I recently viewed sold at $406k and was probably about 30 years old). A friend in Napier has just bought a similar house for $163k, and is getting $280 pw rent. One he sold in late 2006 for $325k has been on recently at $249k.

I've noticed a few of the outer areas in Whangaparaoa peninsular falling a little. A 3 bed I spotted this morning 3k's from Orewa at $269. Thats the cheapest I've seen - looked quite a nice house.

[Serpie]

Keep your eye on Pegasus Town Village just north of Christchurch.

Mmmm - why Pegasus Town?

Personally I think Pegasus Town will take 5 years or more to bounce back into life. There may be some bargains out there over the next 12 months, but do you want to sit on empty sections for years?
Do you see some opportunities out that way in the nearer term?

Agree with you regarding the commercial side of things. although that's also had a great run over the last few years. From a casual observer's point of view I've noted that retail occupancy is dropping noticeably, especially in the suburbs outside of the main malls.

[lakedaemonian]

Things must be pretty bad to get to this price level


http://www.zillow.com/homedetails/photos/11453714_zpid/

Pittsburg, while affected to a certain extent by the crashing housing bubble, is a bit different from other regions.

It got destroyed in the Version 1.0 deep recession/job losses/offshoring of the 70's-80's.

Although the economy there is a bit better diversified, it still hasn't fully recovered.......especially in terms of real estate prices...so since the Pittsburg region had less real estate upside....they will likely have a good bit less downside.

It would be quite common to find older, reasonably well constructed homes, but likely poorly maintained, for the price of a car in former manufacturing hubs in the US.

My guess is that there are limited/declining job prospects for a reasonable radius away from that house.

Also, local property taxes(rates) play a HUGE factor in the US in terms of local school district catchment areas. Disparity in resources between public school districts can be at times FAR wider than in NZ. IF the local school district is POOR, it would further hinder the marketability of this property.

Sort of like a run down house selling for $50k in a prospectless outer suburb of Gore would be the closest analogy.

Just my 0.02c

[minimoke]

So, can we take it that neither Serpie or Lakedameon have taken a loss on their recent house sales?

As for my neighbourhood, there are lots of “sold” signs up but I haven’t checked the sale prices yet and not so many for sale signs around.

And Pegasus Town – I’m not sure they have dug the heavy equipment that got lost in the sand out yet. I wasn’t in the least bit tempted to buy when this town went to market and I’m less inclined now. I’m picking another “Rolleston” – 20 years before we see anything substantial. But in the meantime buyers will take a hit on their land purchase on resale and covenants will get slackened.