I STILL CALL AUSTRALIA HOME!!

I STILL CALL AUSTRALIA HOME!!

It is only when we take a closer look at the Mosman market, that we see certain patterns emerge. In 2007, twenty three per cent of the houses we sold were to expats returning home, and the balance were to the seven families who emigrated from the UK. All were subscribers to this newsletter.

Our online subscriber sales are now at $599,956,500. This would have to be an Australian record with this newsletter now going to 52 countries around the world. It is a fact, that nearly one quarter of the houses we have sold this year, were viewed offshore first – then purchased.

Last month we transacted just over $45,000,000 (we got the valuations right) in real estate which explains why our stock levels are at an all time low. As of next week, we will have more houses for sale as the market trades to 30 June. Very little happens in July as half the month is school holiday time and most people either chase the snow or sun.

The latest ANZ Housing Snapshot has revealed that Australia is currently enjoying the strongest period of global economic growth since the late 1960(s) and early 1970(s). What continues to be as clear as day is that dwelling approvals are falling while demand increases. In the past three years, vacancy rates have fallen from 3.8 per cent to 1.4 per cent and we still don’t acknowledge the alarm bells. This is because what is required to correct this trend, would involve a complete reconstruction and overhaul of our taxation system (both State and Federal). The report identified “With new dwelling supply slipping even further below demand, the housing market will continue to tighten. This will exacerbate already severe rental shortages with vacancy rates in all capitals moving from approximately 4 per cent in 2002 to a portended nadir below 1 per cent in 2007 – 08. This will drive rents significantly higher in coming years. Despite a further two interest rate rises forecast in 2007, ‘pent – up’ demand will ultimately need to be satisfied, with crucial shortages providing a catalyst for the next upturn in construction. In spite of interest rates hikes and difficult housing purchase affordability, 30 – year lows in national unemployment and concomitant gains in household income are underpinning a financially healthier housing sector. House prices continue to escalate (up 8.3 per cent in 2006) and will maintain solid growth in 2007 supported by buoyant household finances, renewed investor interest and tightening housing fundamentals.”

The Sydney Morning Herald ran an interesting story last Saturday titled “ March of the million – dollar suburbs” which identified that there are now 42 suburbs with a median house price of over $1 million. Million Dollar Club

Just as amazing is that Palm Beach is the most expensive suburb where the median price has more than doubled in the past three years to $3.100 million. Four suburbs managed to record a median price in excess of $2.00 million. They are Clontarf, Dover Heights, Bellevue Hill and Vaucluse. Mosman recorded a median price of $1.795 million which identified an 11 per cent increase over the last three years. Sydney Suburbs Percentage Changes

Figures for this report were compiled by Australian Property Monitors. Not everyone agrees that our market continues in power mode, as one overseas subscriber advised me after last week’s edition. “It’s fascinating, reading your weekly Feature Article. I see that you have only 4 houses for sale…is that an historic low? There are quite a few expats waiting to see what the market will do by the end of the Summer, before we buy. As the financial world continues to crash, people will soon have to get out of their ridiculous first second and third mortgages as they will not be able to cope with the massive payments. Have you found that there are people such as us, waiting for the inevitable collapse? Been a long time coming, but you had better brace for it. This is the year.”

Whatever the case, on closer examination, this property market just gets more and more interesting! Cheers ^__^

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