The Summer market wrap-up

The Summer market has come and gone and it concluded with what the Manly Daily called Super Saturday. Saturday 27th Feb contained 33 Auctions on the Northern Beaches, which was approx double the normal number. A Statistic you may find interesting is that the average days on market for an Auctioned property is 31 compared with a Private Treaty (For Sale) property at 68 days. This can be attributed to several compounding buyer behaviours which when targeted will result in shorter campaign length, less overall marketing costs and less holding costs. If you want to know more just call Steven Purcell on (ph) 8914 3215

Keeping you updated:

Warriewood Sales for February.

Address............................Bed/Bath/Car .......Sale Price

53 Alameda Way............4/2/2.......................$821,000

6/3 Fantail Ave..............3/2/2.......................$635,000

23/30 McPherson St.....3/2/2.......................$575,000

6a Sydney Rd.................3/2/1........................$880,000

14 Warriewood Rd..........4/2/1.......................$889,000



Mona Vale Sales for February

86 Darley St.....................3/2/2.......................$702,500

30/16 Darley St..............1/1/1........................$375,000

40A Elimatta Rd.............5/3/2.......................$1,210,000

4 Foley St.........................4/2/2.......................$755,000

13/6 Foley St...................2/2/2.......................$635,000

10 Halesmith Rd.............4/2/2........................confidential

12/68-70 Park St............3/2/2.......................$967,500

6/46-50 Park St..............2/2/1.......................$680,000

64 Rednal St.....................4/3/2.......................$2,850,000

45 Samuel St.....................4/1/2.......................$1,170,000

5 Southbourne Way.........3/-/-........................$865,000

1/18 Surfview Rd.............2/1/1........................$710,000

6/2-6 Vineyard St............3/2/2.......................$590,000

19/24 Waratah St.............2/1/2.......................$620,000

20/24 Waratah St.............2/2/2.......................$730,000



Just recently I attended a business breakfast, at which Mark Bouris was the keynote speaker. Well known for his Wizard Mortgage business which he sold recently to GE for $400 million and more recently for his TV appearance on Channel 9's "The Apprentice". He spoke of his opinion on the banking industry and their effect on the economy and more importantly the decision making process of the Reserve Bank.

Briefly; As availability of overseas funds is becoming limited, the Four big banks require locally sourced funds to maintain their mortgage business. It is their Home Loan business which makes up a great deal of their profit margin. Accordingly, the banks will raise cash deposit rates to attract cash investors and try and avoid those investors switching to equity based structures. In order to maintain a minimum 3.25% margin on loans they will continue to raise Home Loan rates as they scramble for those cash deposits. Essentially this means that it is the local cost of funds that is driving up Home Loan Interest rates. Interestingly the Reserve Bank no longer needs to raise rates to curb inflation as the banks will do it for them. We saw this theory tested in when the Reserve bank left rates on hold at the last meeting, despite many economists predicting a fourth consecutive hike. Mr Bouris believes that we need more banking entities in the marketplace and he is a great believer in Credit Unions and Building Societies. Their not for profit statis allows them to reduce their margins to assist SME business and their members via competitive Home Loan rates. Unfortunately the great majority of their lendable funds must come from their cash holdings as they are less attractive to the international money fund operators. The effect on our economy, SME's and the mum and dad investors by the four bank monopoly is widespread and quite evident. The costs of Credit for business is being driven up and the cost to continue trading is rising. Banks have raised their margin on loans from 1.65% in 2008 to 3.25% in 2010, by not passing on all of the Reserve Bank cuts and loading the rises in recent years. This is great for the shareholder but not so good for the borrowers. Mr Bouris is a dynamic advocate for the mums and dads aout there and I urge you to read or listen to any of his publicly available comments.

Is your current mortgage the best you could have right now?
If you would like an independant, no obligation, no cost broker to look at your current mortgage and see if there is a better product out there then drop me an email at: stevenpurcell@mcgrath.com.au


Who do you know? - Forward this on.
If you know anybody in the Mona Vale to Warriewood area who would be interested in some of the details I provide here, then pass this blog onto them or send them this link: http://www.stevenpurcell.blogspot.com/



For this weeks McGrath Magazine, hit the link below.

http://emags.newlitho.com.au/?mcgrath/weekly/27february2010



Thanks for reading and making it to the end of this weeks issue, if you need me or any of the information that I can offer, you can call me in my office on (ph) 8914 3215 or email me at stevenpurcell@mcgrath.com.au



Take Care



Steve

Whats the market doing?
As most agents would report, 2009 was a year we all got beaten up, almost all market sectors fell due to the GFC and the only sector that held and possibly gained was the First Home Buyer market thanks largely due to the Gov't stimulus packages and Stamp Duty relief. Unfortunately for everybody else with property in excess of $600,000, selling into a depressed market was an unavoidable option. For those that held on, relief may be at hand.
Without wanting to sound too optimistic, we seem to have turned a corner. On the back of media reporting that Australia has the most sound economy in the world right now, coupled with the Reserve Bank leaving interest rates on hold, buyers are once again coming to open houses and good numbers are being seen across most price brackets.
RP Data reports that although Sydney has been down approx 30% in listing volume, listing activity as reported by agents completing Market Appraisals is up and rising, reaching levels well in excess of those seen last year. The interpretation of this is that Agents are expecting listing volumes to increase to meet what we are already seeing as growing buyer numbers.
For those of you who have been watching the media lately, the vast majority of market commentators are predicting increases of upto 10% across Sydney. To see what our own expert has to say follow the link below.

John McGrath CEO of Mcgrath Estate Agents has reported on his pick suburbs.
Click the link below to be taken directly to John Personal Blog
http://www.johnmcgrathblog.com.au/

This weeks McGrath Magazine can be viewed direct from your screen, just click on this link.
http://emags.newlitho.com.au/?mcgrath/weekly/20february2010

I see many people who are simply unaware of what the value in their own home is and more importantly what that equity can help them achieve, should they wish to invest, if they were to unlock it. If you are unsure as to what your home is worth you can contact me for a free, no obligation property report.
If for the only reason, to ensure that you have the property insured for the replacement cost in todays marketplace.

You'll see over to your right a quick CLIENT POLL I am conducting. I would like to know whats important to you when you are selecting an agent. If you could quickly check a box I would really appreciate it.

Finally today: a quick announcement:
McGrath Estate Agents has re-enetered the Narrabeen to Newport market with their new office in Mona Vale. Located on the 3rd floor of 1792 Pittwater Rd, the team here is excited about bringing exceptional results to the local community. Call me on (ph) 8914 3215 for your free suburb report or just sign up to my receive my BLOG for all the local results.