Mosman’s number is up – but is the market up to it?

Mosman’s number is up – but is the market up to it?

 

We have been waiting all year for the Mosman housing market to mount a formidable challenge to the market – this week it’s officially game – on. Three weeks ago there were 115 houses on the market, last week it increased to 133, this week on Domain it has jumped to 147 which is the highest number of houses we have seen throughout 2011. Given Mosman has (approximately) 4,900 houses,  is approximately (actually just under) 5 per cent of the total volume which is the exact target number and where the market should be under normal market trade conditions.

Next week’s inflation numbers will determine the RBA’s next rate move – The Reserve Bank of Australia (RBA) has had a difficult task in 2011 balancing the cash rate given its projections that Australia faces elevated inflation over 2011, 2012 and 2013. So a string of good data might stop RBA from cutting rates: Economists although the “subdued”state of the housing market identified that prices had fallen 3 per cent over the year to August. So our housing destiny takes shape where it should be noted that we’re the richest nation on earth, according to a Credit Suisse report.

The Credit Suisse report also notes the European sovereign debt crisis is not expected to stop a new generation of millionaires emerging in the next five years, with the greatest wealth growth likely to occur in the booming Asia – Pacific (that would be Australia.)

BUY PRINT

We sent our Virtual Realty News eye in the sky Tim Mooney to capture The Trots given Hot to trot: latest inner west housing development a ‘game changer’. The Harold Park venue for the trots is  about to become one of Sydney’s largest inner–city housing developments – 1,250 new prestige apartments and terraces that will push up property prices (great news for the property markets). Mirvac is developing the site and will also be creating a 20 – hectare green belt linking Bicentennial Park to Blackwattle Bay.

Uncertainty clouds start of spring auction season grabbed my attention when the Westpac – Melbourne Institute quarterly house price expectation index fell to 9 in October, from a reading of 15.3 in the three months to July. This was its lowest level since May 2009, with doubts about the housing market lingering. This is a national measure so with interest, I noted that 38.7 per cent see prices rising in the next twelve months and 31.5 per cent see them unchanged. Almost one – third (29.8 per cent) predicted falls over the next year, so 70.2 per cent see prices increasing or remaining steady over the next twelve months. Quite funny that real estate is a long term hold not a short term play which was recently evidenced with the reality price failures of The Block and The Renovators on television.

Even the ‘World’s Greatest Treasurer’ was drawn into the debate with Wayne Swan telling the ABC that he doesn’t agree with the International Monetary Fund (IMF) report which indicates Australia’s house prices are overvalued by ten to fifteen per cent. The RBA has plenty of room to move on Australia’s cash rate which presently sits at 4.75 per cent. Last week SQM Research disclosed that Australia has 362,793 houses for sale – Mosman contributed just 133 which was an increase of 24.3 per cent on the same time last year.

The last Census report in 2007 identified that in Australia, thirty per cent rent, so it was interesting to read the Australian Property Monitors – Rental Report where only Sydney recorded growth in unit median weekly asking prices for the quarter of 2.2 per cent.

Lower North Shore has it all for renters – but at a cost as rents soar in major cities as Sydney rents rocket by 13 per cent: report.We have a population in the fastest growth mode yet residential building down 5.3 per cent in June in  quarter. So do the mathematics about supply V demand.  It’s simple and a no – brainer. So Australia’s greatest property pest Steve Keen is back at it again – Property prices to fall 20% by 2013 yer’s end: Steve Keen. A property guru who sold his $500,000 (plus a bit) apartment on South Dowling Street based on his global financial crisis predictions that property prices would fall by 40 per cent back on September 2008.   In my opinion, in Australia, he is the court jester of real estate, but given the Sydney rental data we have published, he has in all probability decided to buy back in?

    MOSMAN – 2088

    • Number of houses on the market last week – 115
    • Number of houses on the market this week – 133
    • Number of apartments on the market last week – 78
    • Number of apartments on the market this week – 86

    CREMORNE – 2090

    • Number of houses on the market last week – 16
    • Number of houses on the market this week – 15
    • Number of apartments on the market last week – 34
    • Number of apartments on the market this week – 36

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 15
    • Number of houses on the market this week – 17
    • Number of apartments on the market last week – 80
    • Number of apartments on the market this week – 83

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

I have gone easy on Julia Gillard’s Fort Fumble or should that read Fort F*&! – up as the political hit has been arranged – it’s a Right mess for Julia Gillard as Labor factions fight. The powerful NSW Right which also destroyed NSW has allegedly activated another political assassination. Ironic they had the terminal finger on the trigger to remove Kevin Rudd and they now intend to do the same to their anointed replacement.

History shows that Australia’s property markets respond much better under the alternate government – maybe property buyers should read into that?

Cheers ^__^

 

2 Responses to “Mosman’s number is up – but is the market up to it?”

  • Gordon says:

    It seems that the ‘powerful NSW Right’ and the rest of their union cohort are still just as remote from everyday reality as ever.

    Their childish belief that backstabbing premiers and prime ministers every few months will fool the public might work in some union circles, but it merely reveals to everybody else that they have no idea and no ideas.

    The problem is not just the ability of the puppets that the faceless ones prop up in front of us; the problem seems to be the faceless, witless and repulsive ones themselves.

  • Ann says:

    Yes they are on self destruct, but perhaps think King Kevin can be their white knight

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