At the end of the day, businesses want answers not questions!

At the end of the day, businesses want answers not questions!

Without doubt the Global Financial Recession (GFR) will re-define outlooks and perceptions and see a vast array of business models challenged as we enter the brave new world. Testing times, but also exciting times which can be lost in a ground swell of confusion. However, despite all the doom and gloom, online technologies continue to add the zoom to our markets.

Such revelations have not been popular with some real estate agencies who will now have to invest (their cash) in costly online upgrades and blogs (we believe we were the first ) to allow subscribers to voice their opinions.

Time heals all markets and this time around (with the benefit of hindsight) on an economies of scale basis, the future looks very bright indeed. One only needs to look at mobile phone technologies to see where we are headed. The race is on to provide consumers with interactive property alerts and I’m not talking SMS either – which failed the consumer test of functionality and appreciation for that matter. Hosting individual media website platforms will be the next initiative for our industry which is fast becoming much more interactive. In time, print expenditure will be reduced with vendors moving to hi-tech video broadcasting that is already much more affordable.

We certainly don’t speak for other businesses, that currently challenge the good, bad and ugly side of the GFR and I believe that the March quarter 2009 will be the worst on our constantly monitored business dashboard. There are signs that real estate markets are getting stronger due to the fact that available stock levels remain tight. Currently, all the buyer action is in the lower price ranges but this action will eventually move to the middle and eventually the top-end markets. Having said that, we believe the top-end properties will identify a capped reduction from fifteen (15) to twenty-five (25) per cent based on 2007 valuations. (It will be interesting to read subscribers’ thoughts on this week’s blog).

Australian Property Monitors (owned by Fairfax Media) revealed that in the March quarter 2009, the number of properties sold in Sydney at auction, fell dramatically. The average price for properties sold at auction in Sydney during the March quarter was $616,237. In the 2008 quarter, it was $786,682. Sales in 2009 were 1,742 compared to 2,230 in 2008.

All things considered, this is not a bad result given that the Westpac Bank – Melbourne Institute leading index of economic activity fell -5.1 per cent in February. A further decline from January which recorded -4.8 per cent, the weakest outcome since 1982. This index has been in negative mode since October 2008 and in all probability, a turnaround could be just months away.

To put this into greater perspective, figures compiled by Treasury identified that the average Australian lost $25,000 in wealth in the past year. Australian residential real estate fell just three (3) per cent in 2008 compared to the United States and United Kingdom where prices fell by as much as twenty (20) per cent. The reason why Australia fared so much better was again, a lack of supply.

Aside from escalating unemployment, a key performance indicator for global recovery, is a strong banking sector and it is well documented that our very own Australian banks are currently positioned as the strongest in the global economy – so why are they delaying our economic recovery?

An analysis by Fujitsu Consulting identified that our banks have increased profit margin on home loans over the past two years. Fujitsu Consulting identified that the major banks are now making at least $450.00 a year more on the average mortgage. Two years ago, which just happened to be the peak of the economic boom – the cash rate was 7.25 per cent. Today it is 3.00 per cent and last week’s Reserve Bank of Australia (RBA) cash rate reductions identified ANZ, Commonwealth and Westpac, cut mortgage rates by 0.1 per cent and the NAB refused to pass on any reduction.

Last week, I mentioned that banks still charge interest rates on credit cards at eighteen (18) to nineteen (19) per cent. This week, the RBA announced that outstanding balances on Australian credit cards presently sit at an all time Australian record of $45.4 billion (multiply that by 18.5 per cent).

Ruddy Fantastic and his government remain tight lipped on this statistic which is understandable given he no doubt read the article published this week by the Member for Higgins – Peter Costello on www.smh.com.au

How immoral, to hold wrong views.

“ I’ve been feeling sorry for Belinda Neal, you will recall, is the Labor MP who let fly at a waiter when asked to move tables at Iguana Joe’s a restaurant/night spot on the NSW Central Coast. “Don’t you know who I am?” she demanded.

Soon all of Australia knew who she was. Kevin Rudd stepped in, reprimanded her and ordered her to undergo anger management consulting.

I’ve never been to this sort of counselling, but I can imagine how it operates. A therapist gives you a tricky case and questions you on how to respond. The idea is to keep your anger under control.

Here’s a case study for Neal. You are flying on your private jet when the flight attendant brings you the wrong meal. Do you (a) eat it anyway; (b) point out you ordered something else and ask for an alternative; or (c) shout at the flight attendant and reduce her to tears?”

Our banks are reducing many to tears and I don’t hear Ruddy Fantastic shouting at them. Obviously they are not on his economic menu. As our headline states, businesses want answers not questions and you can bank on that.

Cheers ^_-^

See you on our blogs – our most popular this week.

1. http://www.rwm.com.au/2009/04/the-power-of-social-networking-on-the-internet/

2. http://www.rwm.com.au/2009/04/it%e2%80%99s-all-about-position-position-position-and-i%e2%80%99m-not-talking-real-estate/

3. http://www.rwm.com.au/2009/04/in-the-business-world-transactions-speak-louder-than-words/

For this week’s recorded Mosman real estate, Cremorne real estate, Neutral Bay real estate and Cammeray real estate sales http://www.rwm.com.au/news/

2 Responses to “At the end of the day, businesses want answers not questions!”

  • Peter says:

    Always an enjoyable read, but be careful ….. two weeks ago you stated the following:-

    “Beware of agents quoting absurd sales results without revealing their source. One Mosman agency has fellow agents shaking their heads in total disbelief at the rubbish they are sending out.”

    To suggest you were the first real estate agency to introduce a blog forum is wrong, and you know it …. afterall, your appointed website developer has developed numerous agency sites with blog forums well before the release of your new site.

    Keep it honest now Robert ….. otherwise people may not believe Item 10 of Reasons to Sell with You stated on your site: –

    “We also run the largest, most sophisticated real estate online business in the industry, ….”

    Largest and most sophisticated n the entire industry!

    PLEASE, keep up the good work, but keep it real!

  • Peter,

    Thanks for your input although you have lost me somewhat on a few points that you raised. Regarding blogs – I agree that many agents have this facility as it has become very popular with subscribers. The only problem is that they don’t do newlsletters so there is absolutely nothing to blog to.

    For many years now our online platform has been used as a benchmark for our industry. We have invested monies, time and energy into our online model to which we are very proud of what we have achieved. On top of that “Virtual Realty News” is arguably the biggest newsletter currently being sent out in Australia based on subscriber numbers – that part will always be real.

    So glad you enjoy your your weekly read – we try our best and I can assure you the reason why agents don’t produce weekly newsletters is because they are a lot of hard work to produce. Thanks

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