With auction clearance rates plateauing at 54% for the 3rd consecutive weekend, property pundits are doing all they can to avoid doom and gloom perceptions. The market has ‘found a new level’ is the positive spin.
Let’s hope most First Home Buyers are biding their time wisely, watching and waiting for the looming swell of sellers. Sellers are desperately trying to maintain their market power by refusing lower bids at more realistic levels vis the earning capacity of the buyer.
Concerns must be raised at Rudd’s move to billow first home owners with cash via the expanded FHOG. Will these buyers feel suckered when they realise they have bought at prices 30% higher than they should be?
When Christmas approaches and the sharemarket drops below 3200, sellers will be keen to replenish their cash flow, accepting bids at more realistic levels.
But the big questions is why should buyers have to bide their time during one of the worst housing crises ever? Why should sellers have so much market power when housing is supposedly a human right?
By increasing holding charges on land, the ability of sellers to dominate the market is reduced, encouraging all sites to be used productively, rather than withheld for speculative profits. Then our freedom is enhanced and pesky taxes can be culled.