Residential property rebound by 2010?

[Dave A]

Property via agents is still overpriced though and often either its what the seller wants or its the agent trying to do his best to get the best price (or just lying to get the mandate).

If advertised prices dropped by another 20%, market would flourish, simple supply demand balance come back into its own again.

That's exactly what I've been saying in my talk. What we are seeing is the result of trying to fight against the rules of supply and demand.

The spin angle is that property has held its price well despite the general downturn, which shows what a great investment property is!

The underlying reality is that there is huge resistance to lowering prices from the seller who is essentially over-committed with their bond. And that makes up the bulk of stock on the market at the moment.

The answer is for property professionals to accept that extremely low volumes means overpriced stock (which I think they have for some time already) and get really good at price counselling sellers. Because that is where the blockage is - or at least was until the finance raising problem came along.

But a pricing adjustment would probably help with the finance raising problem too.