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.
Steve, good to see you've joined the blogging community. Good to see that you are optimistic. What do you think the medium term impact will be on sub-$600k houses, after the incentive and after the spike in prices as a result. will these valuations hold up, or will they fall back into line with the overall market.
ReplyDeleteBy the way, a solid plug for Steve; he sold our house in Cromer for a record price for the street in mid-2008. If he can do that for us, he can do it for you. He cares, he is very good, he is very professional and he delivers - over and above. Brian M
Brian, great to hear from you. One of the interesting factors to come out of 2009, was the banks desire to show some common sense and this presented itself in the tighteneing of lending criteria. Essentially, regardless of the Gov't grant being received, the borrower had to show solid saving history exclusive of lump sum payments received from family or others. When combined with the 3 consecutive Interest rate rises, this essentially saw the sub-$600k properties and lower market weaken or fall back in value as the buyer pool dried up. I expect this to continue until new lending products are introduced or another external force is applied. Much of the heat is now in the $700k-$850k bracket with prices being achieved approx 10%-20% above value. Steve
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