IT’S ALL ABOUT THE OOM FACTOR

IT’S ALL ABOUT THE OOM FACTOR

Yes, depending on whose comments you read, the only difference is which letter they decide to select for the ‘oom factor’. Some are pushing doom and gloom, whilst others believe that the market still has a bit of zoom and boom. One only has to look at how the market performed in 2002, to see that 2003 will in all probability not be much different in performance. The dynamics of our property market has undergone little change, as compared to the financial markets which is doing its very best to discourage investment with constant earning downgrade announcements.

2003, will also be the seventh year of the market run which is unprecedented. Will it be a “Seven Year Itch”? If you purchased back in 1996, last year would have seen the doubling of your investment, with the average price of a Mosman home averaging $1,500,000 approximately, which is the highest in Australia. Mosman again led the market with the most number of sales over the one million dollar mark, posting a respectable 202 sales between January – September, the next best was Paddington with 92. This clearly identifies that the Mosman market is becoming more of a trader’s market, as not only was it the only suburb to break the 100 mark, it went on to record an all time high of 202, which was up on the previous year of 152 recorded sales.

So I am quite dumbfounded as to why some believe that the market will have a dramatic about face. The main trigger to our market is interest rates, which by all accounts will shortly fall. The market is not sending out a message to property owners recommending that they sell and rent, as prices are about to have a severe downgrade. The 2003 market will get off to the slowest start that we have seen in years. This year we have a noticeable difference to previous years, our phones are not ringing!! So if we then apply basic economics, demand yet again will exceed supply. The number of new registrations over the Christmas break have been nothing short of phenomenal, however in all fairness, this is a statistic that only we see here. I really do believe that some property critics spend way too much time looking at statistics, because the figures are not stacking up.

Whilst the housing market may be slow in selecting which gear it will start in, the home unit market is already in overdrive, Marize our Apartment Specialist, has already negotiated six sales, with plenty more on the way. The enquiry level for apartments is evenly balanced between home owners and investors, which is further enhanced by a much improved rental market. What the investors are noticing is that an investment in property is much more secure than say AMP shares. The old ‘Aussie Meat Pie’ is no longer on the investors’ menu. Whilst many have been critical of the Federal Government’s initiative with the first-home buyers grant, the home unit market has defied all criticism, and prices at the moment are on the increase from the 2002 market.

Our prediction that the market would trade to the conclusion of 2002 was correct, with our last exchange for the year taking place on December 24. During that week we exchanged $8,000,000 worth of property. It was only fitting that our last exchange was 1 Whiting Beach Road for $2,950,000 which was yet another Internet sale, and like many properties during the year, it only appeared at rwm.com.au.

Whilst on the website you will have noticed that we have launched today a totally new look, together with our new intuitive website. The greatest complaint with Internet sites is navigation, so with this one, I don’t believe that we can make it any easier. Aside from daily updates, clients can access their private details and make whatever adjustments to their requirements, they see fit. I would like to thank our hard working IT Team, who has been working around the clock for us to be where we are today. One thing I do know is that in 2003, we will once again be the market leaders with IT in property.

Great to have you back, we wish you all a prosperous and healthy 2003. It’s the Australia Day long weekend, an Aussie salute, with cheers and a couple of clinks, ^__^

Leave a Reply

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