NOOOO BINGO – BUT A BILLION IS ON THE CARDS !

NOOOO BINGO – BUT A BILLION IS ON THE CARDS !

Despite the recent evaporation of available housing in Mosman (not to be confused with housing affordability) until the announcement of the Federal Election, business had indeed been boisterous. It is obvious Mosman house owners don’t like elections and a quick glance at Home Price Guide confirmed this. It identifies an amazing trend in the 2088 postcode. We have compared the first month of the December quarter 2006 and December quarter 2007 and the results are quite startling to say the least.

DECEMBER QUARTER 2006 – PERIOD 1 OCTOBER TO 1 NOVEMBER (BASED ON EXCHANGES)

36 House sales – Total value $74,240,000 Average house price $2,121,000

DECEMBER QUARTER 2007 – PERIOD 1 OCTOBER TO 1 NOVEMBER (BASED ON EXCHANGES)

12 House sales – Total value $13,433,000 Average house price $1,343,000

Now we do know that Home Price Guide is yet to pick up a few off market sales that transacted last week, for instance, a Clifton Gardens home that sold for $13.500. million, However based on these statistics, volume is down at the same time last year by at least fifty per cent. Now if we go back to 2003 and do an annual comparison from 1 January to 1 November, we see a totally different result for Mosman houses.

1 JANUARY 2003 – 1 NOVEMBER 2003

315 House sales – Total value $543,604,000 Average house price $1,888,000

1 JANUARY 2004 – 1 NOVEMBER 2004

249 House sales – Total value $459,488,000 Average house price $1,853,000

1 JANUARY 2005 – 1 NOVEMBER 2005

254 House sales – Total value $518,631,000 Average house price $2,091,000

1 JANUARY 2006 – 1 NOVEMBER 2006

300 House sales – Total value $635,224,000 Average house price $2,139,000

1 JANUARY 2007 – 1 NOVEMBER 2007

373 House sales – Total value $903,579,000 Average house price $2,482,000

When looking at these statistics the most noticeable difference is the sheer increase in volume especially at the top-end (which really should not come as any great surprise). It would be fair to suggest that without a Federal Election, total house sales would have broken the magic billion mark which would have been a first for the Mosman municipality. This will definitely be achieved in 2007 given that many off market top –end sales (those being the ones with confidentiality agreements) still fly off the Home Price Guide radar. We recorded nearly $14,000,000 in Mosman house sales this week which are yet to be recorded. So it will be only a matter of time before the magic billion figure is reached, which in itself is an amazing milestone. To put this housing feat into greater perspective, when the Federal treasurer talks of Australia’s $1.100 trillion economy, a municipality of just over 4,900 houses will record an annual turnover of $1 billion in house sales in a calendar year and that does not include apartments and townhouses.

Mosman has (to the 1 November 2007) transacted 455 sales of apartments sales with a value of $358,412,000.

Aside from who will win the Melbourne Cup next week the other burning question is, will the Reserve Bank break tradition and up the cash rate in the middle of an election campaign ?

Without a shadow of a doubt the quote of the week goes to Michael “Cost – ya plenty” our esteemed state treasurer who this week was basking in and boasting of his MYOB prowess. The final year result for the NSW government’s 2006 – 07 budget has improved by $140 million, giving a surplus of $584 million. Cost – ya plenty advised those interested “ that this was further evidence of the government’s strong management of the state’s finances.” Now how about this pearler. “ The result is $140 million higher than the revised estimate in the 2007 – 08 budget papers because of a range of factors, including higher than projected payroll tax receipts”.

That is the fine that businesses face when they employ people. This has absolutely nothing to do with the government’s strong management of the state’s finances. Payroll tax was supposed to be abolished (so we were told) with the introduction of GST seven years ago. Cheers ^__^

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