IT’S TOO SOON TO CALL A BOOM!!

IT’S TOO SOON TO CALL A BOOM!!

For the second time this year the central bank wisely decided to leave interest rates at 6.25 per cent. Whilst this will have little to no effect on our market, it is fantastic news for the struggling outer – Sydney property market. Even better is the news that prominent banking analysts believe rates will remain at the present levels for all of 2007. This in turn prompted speculation that rates would in fact come down in 2008 which is arguably the best news that the ailing market has had heard for some considerable time.

With the first run of marketing campaigns in Mosman, Cremorne and Neutral Bay now complete, you may not have noticed that last week, clearance rates hit 82 per cent. Now that is a boom clearance rate! This week at the time of writing this edition, This week there 13 properties auctioned with a 77 per cent clearance which again identifies that last weeks clearance rate was not just a one off. This does not include expressions of interest and private treaty, so once again the Mosman currency continues to reign supreme. With marketing campaigns now restricted – yes, Easter commences on April 6, the market has commenced the final run. Should the present clearance rates continue and there is nothing to suggest that they won’t, the post – Easter market should be game – on !! When the property market is in a positive frame of mind so are vendors which means that stock levels immediately increase. This was evident in 2006 when the number of properties sold in Mosman, increased 21.75 per cent from the previous year. Should this continue, it would not be unreasonable to expect that we could (based on current figures) see house sales top the 400 mark in 2007.

It is always interesting to monitor market sentiment during a state or federal election – purchasers in the past, have used this as an excuse to sit back and see what happens. 2007 – not the case, the election does not even come into the equation. Many would argue that people prefer to take care of their own business as they have become used to mediocre parliamentary performances and tax abuse.

It did come as a surprise to learn that Michael “Cost – ya Plenty” announced that he is more than comfortable for an across – the – board inquiry into state taxes by the independent economic regulator in NSW. Will those findings make any difference to the current state of play? Absolutely not !! When the treasurer (and I use that term loosely) attended an Australian Industry Group breakfast and was questioned on statistics, he described them as “the equivalent of Paris Hilton saying something intelligent or Britney Spears remembering her undergarments.” Well at least Paris Hilton has money and the same can’t be said for the NSW coffers, with a budget that languishes in and out of the red.

On a more positive note – congratulations to Fairfax Digital where www.domain.com.au this week took out the coveted best online classified award at the Australian Interactive Media Industry Association (AIMIA). In recent times the development teams at Domain have changed their interface and made searching much more user-friendly for purchasers. Today, they lead the online property portals by providing our business with the greatest number of leads and visitors. When your industry body acknowledges that your online classifieds are a cut above the rest, then you know you are on the right track.

In coming weeks we will be introducing new and very interesting online initiatives (industry firsts) as a new corporate look, which is exciting. We were hoping to start a slow release with a few of the online tools this week however a few last minute bugs have delayed this until next week. Cheers ^__^

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