Local News

Local News

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Whilst Robert is on holiday for the next few weeks we have guest contributors!  This week’s edition has been written by Jacqui Rowland-Smith, former journalist and Senior Sales Consultant here at R&W Mosman & Neutral Bay for the last 10 years.

Winter Activity
Our market is unlike any other in recent times. Some price ranges and property types are seeing plenty of action, and others are subdued. Apartments under $1m are moving very quickly. As for houses, the $2-3m bracket in particular has shown strength. We recently launched 57 Holt Avenue Mosman on the Internet, had four contracts issued in the first week, and sold it within days. Buyers generally are very conservative and reluctant to over-extend their borrowings, but they still want to see their families settled in their own homes. There are also highly qualified buyers in the $3-5m range, but properties have to be priced sensibly to attract the right buyers. One of our office’s strongest price categories so far this year, has been the $3-4m range. But importantly, there are good cashed up buyers in all price categories in this market.

Internet Dominance & Print Reliance
The changes at Fairfax and News Limited further highlight the emphasis on the Internet for finding property. In the US, statistics from the National Association of Realtors tell us that buyers typically search the Internet for 12 weeks (median) before they purchase. Of the houses they view online, they typically inspect or drive by 63%. As for the various information sources used in home searches, 30% found properties through print advertising, but 88% used the Internet as well. In August, we will be launching our first auction, only to be advertised on the Internet. Still, it is important not to disregard print advertising – many buyers are not actively looking on the Internet, especially ‘sleepers’ in the market, and Tuesday’s Domain North, Saturday’s Domain and Thursday’s Mosman Daily still capture that audience, which helps stimulate competition between buyers.

Rental trends give clues about buying trends
The top end housing rental market is softening beyond the normal winter lull. This is largely because the Living Away From Home Allowance, as part of the Fringe Benefits Tax, is being abolished this month. Many tenants who have received this very attractive tax deduction are now looking at buying instead. In particular, landlords wanting $2500 per week or more are already seeing substantial reduction in rents.

BUY PRINT

Construction trends leave clues
Very few Development Applications are being lodged with council, and those that are, are usually for minor works. Since the start of the Global Financial Crisis there has been a dramatic downturn in construction of new houses and also major renovations. We are already seeing demand for fully renovated homes that do not need any work. This will only intensify over time as fully ‘done’ product become scarcer and scarcer.

Shortage of stock
So far this year we have seen less turnover than we normally would by June 30. There has been a dramatic shortage of stock in all price categories, which has impacted sales volumes. There are many good cashed up buyers in the market, but they are starved for choice. Our market is consolidating and tightening. Traditionally, a lack of stock can turn a buyer’s market into a vendor’s market very quickly. The number of houses on the market in Mosman fell to 73 this week, which was unprecedented. We are starting to see fresh stock hitting the market, but not as much as we would expect for this time of year. Prices are very much driven by supply and demand, so we are optimistic about a good run for the spring selling season.

Surfing at Balmoral in June 2012 - Andrew Blaxland

I hope you enjoy this picture of the surf at Balmoral last month. It was taken by our in-house photographer and agent Andrew Blaxland. We have more blown-up photos of the Balmoral surf conditions on display in our office windows. If these waves continue we’ll happily consider sponsoring a Balmoral Surf Club 🙂

Source: Domain Property Monitors

    MOSMAN – 2088

    • Number of houses on the market last week– 70
    • Number of houses on the market this week – 73
    • Number of houses on the market this time 2011 – 83
    • Number of apartments on the market last week – 83
    • Number of apartments on the market this week – 98
    • Number of apartments on the market this time 2011 – 99

    CREMORNE – 2090

    • Number of houses on the market last week– 19
    • Number of houses on the market this week – 11
    • Number of houses on the market this time 2011 – 16
    • Number of apartments on the market last week – 18
    • Number of apartments on the market this week – 27
    • Number of apartments on the market this time 2011 – 31

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 14
    • Number of houses on the market this week – 16
    • Number of houses on the market this time 2011 – 7
    • Number of apartments on the market last week – 54
    • Number of apartments on the market this week – 60
    • Number of apartments on the market this time 2011 – 65

    For this week’s sales in Cremorne real estate, Cremorne Point real estate, Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate,  Neutral Bay real estate, Cammeray real estate.
    • Click Here 

    For this week’s open for inspections
    • Click Here

 
I look forward to seeing you at an open house!
Jacqui Rowland-Smith
Senior Sales Consultant

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