SOME THINGS JUST DON’T ADD UP !!

SOME THINGS JUST DON’T ADD UP !!

The landscape of the property niche markets constantly changes, however the same can’t be said for the process of monitoring the overall market performance. Each week we are told what the clearance rates are, however what we are not told is that many niche markets have turned away from auction domination as the preferred method of sale. If you look at the homes advertised for sale in Mosman last week in Saturday’s Domain there were eight for sale by Expressions of Interest, twenty three up for auction, and thirty six on the market by private treaty (many of those are failed auctions). For Mosman apartments, one was available by Expressions of Interest, eight were up for auction and sixty were for sale by private treaty. For Mosman houses we sold a home in Clifton Gardens (which is confidential) however it was advertised last week by Expressions of Interest, and we sold an apartment in Macpherson street for $380,000. Another investor getting out, and a first home buyer getting in.

In Neutral Bay we identified six houses for public auction and eleven on the market by private treaty. Apartments in Neutral Bay had eight up for public auction and thirty four for sale by private treaty. We exchanged an apartment in Bent Street for $370,000 which again was an investor leaving the market and another first home buyer entering the world of ‘bricks and mortar’.

Cremorne homes have one available by Expressions of Interest, one for public auction and six available by private treaty. For apartments one is up for public auction and sixteen are available by private treaty. We sold an apartment in Milson Road for $1,225,000 (another investor departs the market making way for empty nesters). At Cammeray, there were two homes for auction and three homes for sale by private treaty. Apartments in Cammeray have four available for public auction and thirty eight available by private treaty.

When you look overall at these figures it is pretty clear that the private treaty statistics identify a much clearer perspective of the property market than auction clearance rates. Overall, ten properties were available by Expressions of Interest, fifty three by public auction, and two hundred properties by private treaty. So when you see statements such as “Clearance rates down – property market cooling” this does not reflect the entire market, it is nothing more than a beat-up. We are the first to admit that the market has changed and to complete a property transaction takes considerably longer. Whilst the market is somewhat challenging, we continue to post results and given that we are up on this time last year, our business model is working fine.

The tougher the property market, the greater the success for those who actually know what they are doing !! Cheers ^__^

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