Wednesday, April 6, 2011

Real Estate Industry thinks outside the square?

I have seen a few examples recently of real estate agents advertising in new and interesting ways.

The latest was a letter box drop that I received today:


Rather than advertise any of the properties features the flyer promotes that the property has seen a "Price Adjustment".

I have seen a heavy increase in the amount of real estate related junk mail that I receive. How about it Australian readers? Have you seen an increase? Describe what you've seen in the comment section below!

Further to the above I recently noticed some Google adverts displaying the following ads (this is two for the same properties):


Certainly an interesting way of looking for potential buyers, can't say I've seen this method used before, sure I've seen real estate specific adverts, but never for a single property or group of properties and look at the wording... is it any wonder though, a quick look at Maryboroughs trend and anyone can see their units are in trouble:


Here is a link to the apartments that are being advertised (LINK), the auction is this Friday, it will be interesting to see what prices they get given the "no reserve" status of the listings.

REFind shows there are currently almost 900 properties for sale in Maryborough.

Google ads isn't the only innovative online advertising I've seen, you may have also seen these recent 'raunchy' adverts that have gone viral (warning: may not be work suitable).



With both of the above properties still listed for sale on listing sites one has to wonder just how effective this style of advertising is (for achieving a sale).

It will be interesting to see just how far the propaganda goes as this correction plays out, I suspect the actions of sales agencies will get more and more desperate as time goes on.

Industry experts are constantly talking about it being a buyers market, but I suspect that we 'ain't seen nothing yet'. The fear is only just starting to set in. I suspect we have a couple of years to go until we hit despair.


BB

8 comments:

  1. Hope that you don't mind but I post here that which I have posted over at Steve Keen's Blog and which I believe will soon become a huge issue.

    We must be prepared for what is most certainly coming. Unemployment - Mortgage Stress - Foreclosures - Family Breakdown Crisis.

    All this while Government is trying to push through more Taxation Grabs that merely add to the pressures in the face of massive increases in grocery costs and Utility Charges - not to mention Rising Fuel Costs.

    What we must all try to take time to consider now is what is coming to Australia. I posted an extract last week which suggested that the Banks were prohibiting House Agents from declaring their foreclosure interests in houses that they put back on the market.

    This officially supported (?) non-disclosure if true, must not be allowed to happen and we cannot allow what is happening in the USA in foreclosure fraud to happen here even if mortgage modifications are introduced.

    As many mortgages here are variable rates and all mortgages come with full recourse – things are sure to get vary bad indeed.

    Banks see that foreclosure is necessary and right – for them and rightfully it is provided for under Law, of this there is no question.
    What is coming as one casts their gaze around China and Japan and the USA and Europe the certainty is that Australia’s turn is coming.

    And you know, unlike others which includes Steve, I believe that the Labour Party under Julia Gillard in concert with Glen Stevens, who needs no prompting, will jack and hike up interest rates to attract more hot money as foreign deposits to hopefully keep the bank's asset values on their books to the "as normal” status quo.

    Obviously this means far more, and faster foreclosures right across Australia and it will hurt. It really is a decision which we see playing out right across the World today, who hurts? The Banks or the People?

    The answer is the latter. The People must hurt – and pay, a priori!

    We must try to introduce a force in means of a strategy that can keep people in their homes – I am not concerned with investor houses here – but families in their homes despite if they have lost their jobs or not!

    Any ideas and suggestions would be I believe, most worthwhile as we must be prepared, the Governments at all levels must be prepared and the Banks must be directed under Law to protect homes and families as a Prime Directive.

    We must also stop councils jacking up the rates to cover their shortfalls as well.

    Thanks PeterJB

    ReplyDelete
  2. Great post Peter.

    It is ridiculous that the government is stepping in with new taxes such as the carbon tax when it is clear that households and businesses in Australia are already struggling with an economy running on an oily rag (read: residue from stimulus and selling rocks).

    I think many Australians are oblivious to the challenges that we will soon face such as rising unemployment, which could get quite severe if this house price correction is as dire as I suspect it will be. Much like Americans we have been relying on credit to live a life well above our means.

    As you say the variable rates in Australia pose a large risk. I have posted on the blog before about the large uptake of the FHOG & Boost during early 2009 when very few were fixing and paying variable rates little above 5%. Reality has crept up on these buyers with rates having moved higher by around 40% in most cases (5% to 7%), we are yet to see the full impact that the Governments meddling in the housing market, I suspect in years to come many of these First Home Buyers who were lured into the market (with these cheap rates and free deposits) will go bust.

    It’s an unfortunate situation, one that could have been less severe if we had allowed the 2008 correction in Aussie housing to complete its course. There is the potential the Gov intervenes again and makes things even worse. Governments globally appear to be trying to kick the can down the road. Eventually we will have to face reality and buckle in for a far reaching global depression and despite what the MSM commentators have to say it is NOT “different here”, we are not immune.

    You are dead right about the people paying Peter and that’s not just here. A lot of ‘inflationist’ commentators talking about how to protect yourself, when I think it’s likely deflation we need to be preparing for. I don’t think the cartels worldwide will allow the small players to rid themselves of the massive debt through high levels of inflation or hyperinflation. Whatever we see though (and it may differ based on local political/central bank decisions), it’s not going to be pretty.

    Cheers
    BB.

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