Is the price right?

We are obviously through the worst of the housing price downturn and in general the number of properties nationally for sale are at very low levels , leading the major press to be filled with reports of a house price bubble, significant price growth, etc. These comments focus on capital city movement in the main, and bear limited relevance to regional centres. The astronomical price growth in capital cities was mainly led by the “gentrification” of inner city areas as the urban landscape changed. Poor working class suburbs became much sought after. Re article on this on my website. So direct comparison with capital city price movements is somewhat tenuous as regional property prices are subject to different factors. What is a major factor in our area is the price segmentation that has led to a disproportionate number of upmarket properties being listed in the belief “the price is right”, the market has changed, everything is selling A detailed analysis of Mt. Coolum & Yaroomba reveals that in 2012 and 2013 YTD, 66% of all house sales were under $500,000 Yet houses for sale today in these suburbs at these prices are at 19% & 15% as reflected in the table - by far the bulk are the expensive properties with much fewer interested buyers. House Sales - Jan to July 2013 Under $500k Over $500k No. % No. % Mt Coolum 25 68% 12 27% Yaroomba 12 67% 6 33% Housing stock for sale as listed on realestate.com.au shows as at 24th September Houses for sale Under $500k Over $500k No. % No. % Mt Coolum 5 19% 22 81% Yaroomba 2 15% 14 87% In reality we still have a wide choice for the upmarket properties, strong competition but a desperate shortage of the popular price points. Negotiation strategies for both groups then become quite different. The under $500,000 sellers & buyers need an agent who understands local area values, establishes prices accordingly & negotiates firmly around this - agent skill sets become the predominant factor as this leads to a win-win scenario for all, the seller achieves the price, buyer does not miss out.