house prices in nsw

headline in todays paper about mortgagee in possesion rates and cited an auction yesterday where a property bought 18 mths ago in Annandale for $750k did not attract a single bid.

The agent was hoping for bidding around $550k and received an offer after the auction of $330k

It suggests one thing to me,there are plenty of heavily geared people who bought at the height of the latest cycle and are now close if not ready to capitulate.

NSW is almost a basket case in any event and a collapse of the resale market would be almost the worst thing to happen.

I suspect we are about 9 months away from the collapse of the housing boom in NSW where mortgagees will be repossessing houses at an unprecedented rate.

Another rate rise couple with advances in oil prices just might be the catalyst to tip it over the edge.

It will be a tough time if you are selling but a great time if you are buying and are pre disposed to kicking them in the guts to secure a cheap property.

and now might be the best last time to secure a fair price for your property for a long time.