September market maintains control

September market maintains control

With removalists still at their optimum fitness levels, thanks to a property market that commenced well before the foundations were dug at Stadium Australia, what remains to be seen is whether the Spring market will be a ‘sell-out’. Much will be determined when we see whether or not the property market in October is ominous or outstanding. For it to continue to be outstanding, it must not become ‘overweight’. Without a doubt, the September market maintained control and balance with property volume considerably less than previous years. To maintain confidence, the property market will require a vast improvement next month. Whilst we recorded some great sales this month, and ours are slightly up on September 2001, we are not forgetting that September 11 brought the market to a stand still last year.

The market requires controlled aggression. Whereas before, the auctioneers were conducting a chorus of purchasers, today the tune is sometimes not as sweet to the ear. This has been largely due to blatant inaccuracies with regard to vendor expectations. For the market to exceed one must first find the market value and build from there. Agents and purchasers have become strangers and the trend now seems to be that the agency focus is on attaining the property prior to finding willing purchasers. We have changed that focus and are now identifying the purchasers again, and leading them to the property, which is how it used to be in years gone by. This process becomes even more difficult when the purchasers play ‘hide n seek’, however the good news for us is that we have most of them on our database.

Whilst on facts and figures, there was a very interesting article recently about where the millionaires live, and once again the leading postcode was 2088. Figures from the Australian Taxation Office in 1999-2000 revealed that three in every four millionaires live in Sydney. Mosman identified 120 self-declared millionaires, and Toorak came in second with 85. It would suggest from these figures that quite a few have used creative accounting to keep their taxable incomes below the seven figures. Or, could it mean that Mosman has the highest borrowings of all?

Well it is litmus test time. Over the next few weeks we will be launching another 35 million dollars worth of property to the market, and we are very much looking forward to the challenge. One change that we have already addressed with our vendors is that the market is no longer a one-way street and everybody must approach it with more liberal expectations. One statistic that seems to be lost is that the market is already up, and values still remain at an all time high. A buyer in the hand, is worth two in the bush, and many vendors today wish that they had heeded that advice.

For those who believe that the market is finished, nobody bothered to tell us!! What remains to be seen now, is which agents can make the most of what they have to work with, and I for one will not be handing out any clues… cheers, clink… ^__^.

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