NO SWAN SONG FOR PROPERTY !!

NO SWAN SONG FOR PROPERTY !!

They say a change is as good as a holiday. Well the market has changed and more than a few vendors are off on holidays. With the school holidays upon us it looks like marketing campaigns will be moved forward as the Mosman niche market enjoys the current run on sales. It may have averaged out (previously) at ninety days to sell a home, however in the current market in many instances, it is more like nine days. Although it should be noted that the apartment market is not as active as the house market at the moment, should the run continue, apartments will follow suit and we anticipate strong investor participation. The reason the housing market is so strong can be attributed to a slow Winter with purchasers now responding positively with a much greater sense of urgency. How long it will last is the burning question and the answer is simple. Whilst demand exceeds supply, the markets should remain positive through to Christmas. Already we are seeing street house records being eclipsed which explains why the property market is now receiving positive spins in the media.

Certainly the move by the banks to lower fixed loans last week, can only help the property market further and should the discounting continue (which in all probability it will), we will experience continued growth across the markets. It is interesting to see that suddenly the banks are taking on the non-banks, although what makes it more interesting is why the non-banks remain much more competitive on variable rates. Begs the question, that if you are a publicly listed institution and this market increases profitability, why the sudden change, considering that they have been somewhat dormant in the past? For the record, Wizard Home Loans offer the lowest variable rate at 5.77 per cent (source www.infochoice.com.au)

If you look at the present property spiels doing the rounds they still relate to the June quarter which bears very little resemblance to the current market results. With houses, the purchasers are hunting (at the moment) in a pack mentality which always leads to vendors’ price expectations been exceeded. Historically, when this happens with houses, it then happens with apartments, which in-turn, draw the investors in. Like the stock market, investors trade at best when the market is on! When the markets do run, the agents are just as surprised as anyone as nobody has ever before identified the exact trigger. Businesses posting healthy profits, results in that little thing called a bonus! Buyers simply need to remember that property is a long term investment and very few have in the past, posted a healthy profit when participating on a short term mind set.

Recently we launched our Semi – Detached Housing Division which is being headed up by Karen Caspersonn. Our research identifies that there are approximately 1500 ‘semis’ in Mosman, Cremorne, Neutral Bay and Cammeray which explains our interest in this market. Given the success that our Housing and Apartment Divisions share, it makes plenty of sense to concentrate on this niche market as well. Currently we have 405 buyers registered for ‘semis’ so now we will be paying this niche market special attention.

If you are out and about this weekend it will be pretty quiet after 2.00 pm given that the Swans are playing in the grand final. “Cheer cheer the red and the white … ” Cheers ^__^

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