Prices only go up – or do they?

It’s been a given for many years that values along the Great Ocean Road only increase. Since I started selling real estate here in early 1997 the cheaper houses in Aireys Inlet and Anglesea have increased from around $80,000 – $90,000 to $480,000 – $500,000.

That said, it appears that as global uncertainty continues as well as worsening local economic conditions, prices are flattening out and may even be falling. Two sales in the past week in

Aireys Inlet support this theory. 10 Anderson Street has sold after fourteen months on the market at a figure 20% below its original listed price. Also 5 Fraser Drive has sold after twelve months on the market at a figure over 10% below its original listed price.

This week in an endeavour to generate more activity, we have seen more price reductions.

47 Aireys Street, Aireys Inlet reduced from $550,000 (it started at $600,000) to a value price of $525,000.

12 Ridge Road, Fairhaven reduced to $1,200,000 to $1,300,000 from its original price of $1,600,000.

8 Bachli Court, Anglesea reduced to $539,000.

15 Aireys Street, Aireys Inlet reduced to $595,000 from $610,000, from its original price of $655,000.

Of course some of this might be explained by the fact that the properties were listed too high to start with, rather than a falling market. I would suggest a combination of both.

Buying conditions currently exist, such as those not seen since the mid 1990’s.

The time to buy may be now.

Properties Open for Inspection

Saturday April 28, 2012

2.30 – 3.00 8 Bachli Court

3.00 -3.30 126 Harvey Street

Sunday April 29, 2012

11.00 -11.45 Narani Way

12.30 -1.00 25 Alice Street

1.00 -1.30 1 Werona Road

1.30 – 2.00 28 Old Neuk Road

James Worssam

james@greatoceanroadrealestate.com.au

0418 585 815

Welcome to Aireys Inlet.

Business groups have urged the Reserve Bank to cut interest rates in a bid to lift the mood of consumers, who are as pessimistic about their personal finances as they were during the recession of the 1990’s.

Calls yesterday for an interest rate cut from the Australian Chamber of Commerce and Industry and the Australian National Retailers Association came after consumer sentiment fell to its lowest in eight months.

Business groups were joined by the unions and Westpac chief economic Bill Evans in calling for a cut in interest rates after households perception of their own finances, which most influences

spending, dropped to the lowest since the global financial crisis and was now in line with the levels of the 1990’s recession.

This sentiment flows through to buyers seeking to purchase ‘lifestyle real estate’ which partly explains the slowdown in sales activity we have seen on the coast over the past twelve months.

Open for inspection this weekend

Saturday April 14, 2012

11.00-11.45 Narani Way

1.00-1.30 10 Anderson Street

2.30-3.00 8A Bachli Court

3.00 -3.30 126 Harvey Street

Sunday April 15, 2012

11.00 -11.45 Narani Way

12.30 -1.00 25 Alice Street

1.00 -1.30 1 Werona Road

1.30 – 2.00 28 Old Neuk Road

James Worssam

james@greatoceanroadrealestate.com.au

0418 585 815