Eastwood House Price - Unbelivable At the Moment

[Christos]

A few weeks ago I was at an auction in Eastwood not as a buying but as a spectator. Of course I was not the only spectator as I figured many of the neighbors were also there to watch the auction.

There was some research before the Auction and some things that I discovered that would need to be attended. Water in one of the bedrooms coming from the adjoining bathroom. The guttering on the stand alone garage was just full of holes. There was a fair crack on one side of the garage wall of 30mm in width and running about a meter stepping down the brick face. There were other minor things that would require some maintenance being a reasonable old house.

The bidding started at 790K and quickly reached the million dollar mark. The initial 3 bidders had dropped out and it was now between two bidders. It finally sold for over 1.2m.

I thought that it was well over priced, but alas I am not an real estate person and do not know the market as well as them.

So about a week later I managed to get hold of the local paper and this auction that I attended was mention along with another two house going over the reserve. The other two went over by 100k but this one had a reserve of 890K and it was sold for 1.2m which is 300k over the reserve.

I know that this can not be sustained as every boom must bust. (I am quoting Rene Rivkin)

[Bushmiller]

Christos

I am not too well up in the real estate market either, but I am surprised that houses at that end of the market are selling well. It would be interesting to know what those same houses were worth, or valued at, one and two years ago.

Regards
Paul

[AlexS]

It finally sold for over 1.2m.

Barely land value.

Probably depends how it's zoned. If it's close to the rail line, the government's policy is to convert to high density, so that may be the reason for the high price.

[Wongo]

The trouble is Eastwood isn't even a great area. It is getting harder and harder to be a home owner.

[Christos]

This particular house was not very close to the train station but within walking distance to a bus stop / main road.