Ominous warning on house prices as ABC exec sells
ABC executive John Lyons has sold his longtime home in Clovelly as his agent Alexander Phillips had a bumper $17 million worth of sales after he convinced vendors to adjust their price expectations.
The respected Phillips Pantzer Donnelley principal sold the Knox St home of Lyons and his wife, Sylvia, for about $4.7 million on Thursday afternoon - half a day after it hit realestate.com.au as his listing.
The Executive Editor of ABC News and ABC Head of Investigations had had the six-bedroom home with pool with another agency since late January, initially with a $5.5 million price guide.
"All vendors have had to adjust their expectations downwards 10 to 15 per cent," says Phillips.
"It's happened very quickly - just three to four weeks - but we're starting to sell a lot more now because vendors are meeting the market."
Phillips believes based on unemployment and earnings forecasts, prices will fall another 10 to 20 per cent over the next six months and not recover for five to seven years.
"After the GFC [of 2008], the upper end of the market didn't return to the same levels until 2014 and I reckon this is worse," he said.
He says the Clovelly sale was the highest of the week, but he's also had two unconditional offers - not accepted - on the luxury Bronte home of F45 founder Rob Deutsch, who is moving to the US.
The gym boss has done a full renovation on the luxury home at 12 Marine Drive since buying it for $11.2 million in 2018.
He and Ashley Bierman of Ray White Double Bay haven't nominated a price guide, though they point to the suburb record $16.8 million sale of a home nearby last year.
The listing is certainly popular online - it was the most viewed property in Sydney's east on realestate.com.au over the past week.
The realestate.com.au chief economist Nerida Conisbee says it's too early to predict the long-term impact on prices.
She says there are still people out there looking to buy, although numbers have dropped off over the past month.
There are plenty of properties to choose from, but few bargains as there are "very low levels of distressed listings".
Conisbee does note though: "Any increases in unemployment will have a big impact on the property market … in the global financial crisis, premium suburbs of Sydney did very badly."
Originally published as Ominous warning on house prices as ABC exec sells