Despite the abuse that is constantly heaped upon it, the property market has stood the test of time!

The recent decline of new listings in the market, has (interestingly) forced those looking for homes to spend much more time on the Internet, searching properties of interest. What we are experiencing now, is an obvious increase in the volume of online enquiries compared to the previously favoured offline, that now has only (on average) thirty per cent coverage of the market. With the sharp turn around to online, this is where observers can view 99.9 per cent of the market. It is also a bonus for vendors, as it is much more affordable.

Initially, some in the market were a little cautious of this new advertising mode but, fortunately, we have not seen any change in vendor / purchaser relationships. Off-market sales are recorded as agents use their database to match likely purchasers with properties that are not going into offline marketing campaigns.

The rumour in the marketplace is that a few more double digit ($10,000,000 +) sales that have been posted in recent weeks. If correct, these sales identify a market that remains cash positive. Of course, if the asking price at entry is not ‘wholesale’, it is unlikely that a ‘retail’ sale price will be achieved. There is competition out there however, it is on the purchaser’s terms. When a property is offered at what is considered fair market value, vendors can expect market competition, which is exactly what we are finding.

It should be noted that the recent changes in marketing alternatives have challenged the market. Not only has the traditional marketing ethos changed personalities, so has the selling methodology. Agents now, go into a one on one selling scenario which has been a long time coming.

In the past, many argued that properties sold because demand well and truly exceeded supply. Today, agents need a more exacting dialogue as the market is an entirely different landscape to that of twelve months ago. This is more and more evident given that in 2001 the Mosman market had 445 home sales and in 2005 it could only boast 265. Less activity can lead to less enthusiasm as we find fewer people on the property dance floor. Agents now need to come to the market, armed with more streamlined and strategic market evidence.

Fortunately, at Richardson & Wrench Mosman & Neutral Bay, you are “dancing with the stars”. In coming weeks we will be launching $40,000,000 worth of new property in a combination of offline and online marketing. In simple terms, we are now in a market where imagination is vital. Five years ago, just a few would have dreamed that the property market would be so reliant on the electronic form over paper. What makes it more confusing is, as most would agree, electricity is more expensive than paper. Cheers ^__^

Leave a Reply

Your email address will not be published. Required fields are marked *