Something just happened to the Mosman property markets!

Something just happened to the Mosman property markets!

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Albeit a brief visit (28 hours), it is not that often that the world’s most powerful identity lands on our shores where by the sounds of things Australia is set to become the fifty third State of America. With America’s future lies with Asia – Pacific region, Obama says where in an historic address to the Australian Parliament “As President, I have therefore made a deliberate and strategic decision – as a Pacific nation, the United States will play a larger role and long – term role in shaping this region and its future – by upholding core principles and in close partnership with our allies and friends”. He went on to say the region was crucial to US interests, as the world’s fastest growing region – Obama takes aim at China in new Asian world order.

For those who missed the live speech here is the text of Obama’s speech to Parliament I watched it live and I must admit that it was most impressive as he provided an insightful vision as to what lies ahead. Although Australia’s most irrelevant political party didn’t agree as Greens fury at US build – up which should not come as a great surprise. They should stick to just planting trees.

It has not been a great week for the Greens with Julia Gillard’s backflip on uranium exports to India announcement. Although it will be interesting to watch if this fractures the Greens/ALP relationship?

BUY PRINT

Storm clouds over Europe, but sun is shining elsewhere “The media’s great strength is the speed with which they can bring us myriad details about the latest happening in Greece, Italy or anywhere else. Unfortunately, their great weakness is their inability to digest all that information and summarise what it means. The closest they go is in relaying the opinions of 101 supposed experts from Greece, Britain, America or anywhere else. Listen to more than one or two and you’re soon none the wiser.”  The long and the short of this is that consumer sentiments in Australia have adopted a short trem positioning and not a long term outlook.

Euro crash will scatter debris far and wide – we need to watch the road which prompted “The World’s Greatest Treasurer” to declare ‘Get your act together’, Swan tells Europe. When it became reality that Eurozone third quarter GDP suggests bloc is sliding into recession. Gross domestic product in the 17 – nation eurozone grew 0.6 per cent at an annualised rate during the third quarter, according to figures from the European Union’s statistics agency Eurostat. The weakest expansion since the region exited recession more than two years ago and well below growth rates registered in the US and Japan. The eurozone was spared no favours when the Greek economy fell 5.2 per cent in the third quarter.

The problem is quite simple: French banks are among the largest holders of Italian debt.

On the home front consumer confidence revives after rate cut which would explain the recent spring surge blooms as home buyers dive in. So it is not new money in our property markets when a press release from the Mortgage & Finance Association of Australia announced “first home buyers” have little confidence in the Australian economy, as they baulk at property purchases and hoard their cash.”

Reasons for delaying their entry into the housing market were:

  • 72.1 per cent said they were worried about the level of debt home ownership would require
  • 44 Per cent said they were delaying purchasing a first home due to economic conditions
  • 20.5 per cent of first home buyers felt that property prices are too high

So the Reserve Bank of Australia (RBA) keeps mum on future rate moves although I believe the RBA will cut the cash rate again next month so that they can separate Australia from the Euro crisis and set a solid consumer platform going into 2012. I’m not that concerned by all the rhetoric emanating from our central bank when RBA takes negative line on multiple rate cuts and RBA board split on rate cut. The reality is that the RBA sees housing market as subdued not should we dismiss Economists and traders fighting a false forecasting war: Christopher Joye.

Was it the ‘Obama Factor’ that triggered the greatest trade volumes seen in 2011 this week for our demographic markets? There is not a single market in the world economy that does not fall under the economic equation of Demand V Supply.

So closely examine these figures we extrapolate each week for our readership.

Source: Domain Property Monitors

    MOSMAN – 2088

    • Number of houses on the market last week – 168
    • Number of houses on the market this week – 136
    • Number of apartments on the market last week – 138
    • Number of apartments on the market this week – 118

    CREMORNE – 2090

    • Number of houses on the market last week – 21
    • Number of houses on the market this week – 16
    • Number of apartments on the market last week – 44
    • Number of apartments on the market this week – 34

    NEUTRAL BAY – 2089

    • Number of houses on the market last week – 21
    • Number of houses on the market this week – 15
    • Number of apartments on the market last week – 136
    • Number of apartments on the market this week – 101

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

For this week’s open for inspections – Click Here

This is anecdotal evidence that all of our property markets are engaging again and these statistics which are the most conclusive in 2011, prove that our property markets have turned. It will be fascinating to see next week’s results to see if this trending continues – I believe it will. What we are identifying is that our expats are now returning it ain’t working: Aussies abandon the ailing UK job market.

So Julia Gillard closing gap on Abbott: poll although her days are numbered given Bill Shorten firms as PM’s successor. Although the greatest problem they face is over those one – armed bandits ALP carries pokie burden – which won’t go away anytime soon. On a funnier side SLASH AND BURN: Swan plans to cut billions in spending so I assume he is referring to focus groups where the Gillard government spent $33 million last year on market research. They should be reading newspapers although that premise is quickly dismissed given Gillard looking to blame media: Hartigan.

Whilst on the media I have long argued here that newspapers can’t charge readers for online content so I was not surprised to read in Business Spectator when Alan Kohler wrote Will Fairfax break the paywall. As you would be aware you have to register to now read (The Australian) online as Rupert Murdoch proposes that Australian’s should pay a subscription to read his papers online. Online is based on the premise of eyeballs and third party advertising where the more eyeballs the more revenue. The Australian behind a paywall, and so far the three month trial has seen its page impressions decline by 25 per cent – far less than might have been expected. Actually, and certainly less than its traffic will decline once it starts charging.”

No wonder Fairfax Media is reconsidering its online position. The problem for News Ltd and Fairfax Media is that they are still “newspaper thinkers” who believe (incorrectly) that you can still double – dip with advertisers and the readership.

Goes to show you can never assume.

Cheers ^__^

8 Responses to “Something just happened to the Mosman property markets!”

  • Mike Stokes says:

    Rob ,
    you missed out the 2 sales in Arbutus St
    which I think exchanged earlier this week

    Mike

  • Mike – yes they did exchange this week and you are 100 per cent correct we (RWM) made two top end sales this week also. I’m just not sure if it was a miracle week or the market regaining lost confidence. Next week’s sales results will go a long way to explaining just where our market is 🙂

  • steve says:

    Hi Robert
    Trust you are well?
    Time, like fashion is a funny thing, and the funnest thing is that the older one gets, much of what was a fashion or fears come back to present themselves again! (excluding technology of course).
    I’m mainly referring to this section above: Reasons for delaying their entry into the housing market were:
    72.1 per cent said they were worried about the level of debt home ownership would require
    44 Per cent said they were delaying purchasing a first home due to economic conditions
    20.5 per cent of first home buyers felt that property prices are too high.

    When I run my own agency over 30 years ago now the above arguments were pretty much the same. Only difference is the houses we were selling for 165k are now selling for 850k+. One thing I have learn is that good located Aussie property continues to rise and probably will continue to do so in the years to come. Cheers Steve

  • G’Day Steve – long time no chat,

    You are correct as very little changes although I must admit that Generation Y (Millennial Generation, Generation Next, Net Generation, Echo Boomers & Worst Generation) still amazed at the vast range of descriptions they get – are without doubt the hardest to please given their disappointment at what their budget gives them.

    Many are just not prepared to give up all their prized possessions to commit to paying a mortgage as they still want to maintain the lifestyle they have become accustomed to!

    Heaven forbid instead of the Bali holiday – they could never have a beach holiday on the South Coast in a caravan. Ahh – those were some of the best holidays.

    Cheers

  • Ann says:

    Yes Robert,

    I think the paywall concept will fail. They have enough online ads to compensate and so does SMH on their ipad app.

  • Ann says:

    Do Gen Y buys newspapers, would love to see the stats.

  • Generation Y aren’t reading Newspapers

    US newspapers are starting to worry. And according to the few Australian publications I have received calls from in the past few months, so are Australian Newspapers. Gen Y just aren’t subscribing, or buying them at all. Why? Well why would they. They have been brought up most of their life seeing information as being free. They use google or online news portals, or just free to air TV to get their news. See some interesting comments from a series of focus groupd conducted in Washington.

    http://www.wired.com/news/culture/0,1284,65813,00.html

  • Anon says:

    The ‘Wired’ article cannot be considered a current reflection of anything as it is seven years old – 11.24.04 was 24 Nov 2004.

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