Melburnians Fleeing the State Buyer...

www.dailyreckoning.com.au
3 min read
fairly easy
If you're a property buyer shopping in today's market, you'll be used to witnessing properties selling way above reserve. Seems like every other day there's another great BBQ story of an auction result smashing all records.
Melburnians Fleeing the State Buyer Beware

If you're a property buyer shopping in today's market, you'll be used to witnessing properties selling way above reserve.

Seems like every other day there's another great BBQ story of an auction result smashing all records.

The latest to hit the headlines is a renovated four-bedroom house in Haberfield, NSW.

20 bidders registered for the online auction. Frenetic bidding pushed the price more than $2 million above reserve.

The property sold for a suburban record of $7.02 million.

Happy vendors — happy bank.

Meanwhile, the RBA has warned it may be necessary to clamp down on household debt-to-income levels that increase the risk of financial instability.

'The central bank is finding it hard to judge in real time whether prices are out of line with market fundamentals…'

Fundamentals?

There are no fundamentals behind a buyer's decision to bid prices into the stratosphere in today's market.

They're merely speculating that in a few months/years, some Joe will come along and pay more.

If you know your real estate cycle history (that we teach over at Cycles, Trends & Forecasts) — that will certainly be the case in many regions of the…
Catherine Cashmore
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