Bush gets return?

Bush gets return?

The week that was saw my triplets celebrating their first birthday, whilst their 3 year old big brother conducted calculated acts of terrorism to steal the limelight. Much-the-same can be said of the USA where any brief celebration related to a rise in the stock market, turned into another swan-dive, as corporate terrorists brought another major institution to its knees. Just as I cannot predict the plotting mind of my little boy, nobody can predict the USA’s next external or internal terrorist events. Over the last two years, $12 trillion AUD have come off the value of the US stock market. So when will it find a bottom? Even “El Presidente”, the Texan cowboy, is now seen pleading for a return of investment.

So what does all this mean in down town Mosman? Growth during June was just 0.7% adjusted annually to a figure of 2.8%, which is well below the government’s desired 3 to 4% target. As correctly predicted in past weeks, it’s almost certain that interest rates will not rise now. So, the really good news here is that Sydney’s journos will stop publishing the ‘rise then fall, fall, fall’ of Sydney’s property market.

At the moment Mosman’s property market is quiet, due to an absence of stock and some overly nervous purchasers. For example, have a quick look at property for sale in the Mosman Daily, at the normally popular price range of $2.5 to $3m. There appears to be only four or five properties, of which we have three (6 Major Street, 102 Prince Albert Street and 2 Milner Street). In two months time you can expect comfortably triple that amount, as the Spring market takes off. So what will happen to prices, I hear you ask? Well, that has to remain as your gamble, I’m sorry to say. At the moment the market is flat and extremely well priced, but if any positive news out of the USA can be added to build on the low interest rate story, then prices will rise as an excess of buyers compete for property in the open market. If we receive more bad news out of the US then I anticipate the market will remain stable but not drop. Premium value property will always demand a top price, however, comparatively less attractive property will rely on the negotiating strengths of the real estate agent to achieve better than the vendor’s ‘most realistic’ price expectations.

As buyers gamble this year on the selection of the best time to purchase, vendors will face a more challenging task. Who are the best agents to achieve the highest price for their property, amidst buyers with potentially increased purchasing power? More now than ever before, agents must develop informed selling strategies, prior to commencing the campaign by linking the property for sale to the local market as it is influenced by broader market conditions. Top negotiation skills are derived from knowledge, which creates the power to control proceedings. If your agent isn’t an active market analyst then your buyers will dictate proceedings. So here comes Spring, best of fortune for the vendors and good hunting for the purchasers.

Watch out next week, as brother Bob returns to the author’s chair, after two weeks in the Balinese sunshine. Will anyone be spared? We guess not.

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