AT WHAT PRICE !!

AT WHAT PRICE !!

Well it is that time of the year when many businesses sign off at the end of the day as June 30 is upon us. Yet again, the property market (well in our case anyway) remains resolute and continues to show no signs of fatigue. The only lethargy that we see today in the housing market is that of the vendors who, having previously contributed to the property game, are now deciding that they are content to sit back and enjoy their asset, which has now been renovated or re-built.

June 2006 for some, will be remembered for identifying some of the strongest top-end sales that Mosman has ever encountered. Many are left scratching their heads as there was no physical evidence of these stealth sales (with huge confidentiality agreements) and they won’t become public for many, many months. Whilst we remain in the dark with some of these sales, it has been suggested that June in Mosman was the largest top-end selling spree. It would appear that the market will have to wait for Title Deeds Top 100 sales in 2006 (which appears in December) to see exactly what happened where. If the scuttlebutt is correct, Mosman will have a record number of top-end sales which is quite amazing as we still have six months to go. For your information, June 2006 was an all time record for us, which in itself, should leave you some clues.

Again, the amazing reality of this recent selling spree is that these transactions were conducted on the quiet which just goes to show that the property market has many personalities. It is a matter of adjusting to new trends and this can only happen if a business boasts strong online capabilities. It would be fair to suggest that we will see a continuation of this until we start moving towards Spring/Summer, although many are of the opinion that stock levels will remain tight for some considerable time. Banking bonuses have a habit of igniting property prices in Mosman and that now happens as many as six times a year. However, expect to see very little happen in July, which will not resemble June. Having said that, nobody anticipated the June shoot out where more than a few vendors were forced to leave as the money on offer was too good to refuse. As they say, “everything is on the market at a price”.

Our average sale price for a home in the month of June was $3,160,600 which is an all time high, given the record number of transactions. We can also report that apartment transactions have finally turned the corner and the pace is well and truly back on. Investors are not entirely back, however we can report investor sales taking place. It is interesting to see that the ‘Queen of Apartments’ on the Lower North Shore, Marize Bellomo, recorded her second highest number of transactions in a quarter, with thirteen exchanges (her record is 15 in 2003 when the market was firing on all cylinders). This enables us to draw a conclusion that apartment prices have bottomed and, as with the rental market, (which is berserk) we can expect to see plenty of action over the remaining six months and beyond.

It is all about supply v demand and we all know how demanding the property market can be. The postcode 2088 still remains one of the most sought after in Australia for all the right reasons (despite what some say). You can be the judge, but the property market will always be the jury !! Cheers ^__^

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