.

With Robert still sunning himself in Thailand, I will make today’s report brief, as I know I cannot compete with the master!

I think Richard Simeon’s column last week sums up my opinion of the market as well. For the first time in 12 months, we are getting some positive reports from economic advisors.

I, like many I am sure, get up every morning and switch on to the international business channels on Foxtel. It gives a reading or a ‘pulse’ of what is happening around the USA, Europe and the UK. For the past nine months, it has been depressing to hear the daily doom and gloom. Lately however, although the news has been cautious, it has been more up-beat and positive. The stock market seems to have bounced back of the bottom and stabilized and this is what I believe has also happened to our market.

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As you know, our recent spate of sales in May-June saw us selling lots of houses and units…….a pleasant change, I must say!

Because the market has bounced back and stabilized, the bargain hunters will struggle to find a bargain and will have to pay a fair market price – I repeat ‘fair’, not bullish.

I feel people who bought in the past six months, may have bought at the bottom, although not all were at bargain prices. Some prices were very strong, because they were prime properties in prominent positions.

I had a meeting with an old real estate colleague this morning, who has been in the game for 25 years. He is marketing a project at ‘Top Ryde City apartments’ which is a huge retail, commercial and residential development in Top Ryde. It is apparently the biggest development of its type in Australia.

Tony tells me that last week end, they sold 47 units off the plan – not to first home buyers, as they are too dear for that market. All the buyers are local families and investors. This shows that the tide has turned and people are confidently getting back into real estate. Tony’s comments were ‘we are coming out of this downturn much faster than the early 90’s, which dragged on for three years”.

The local market is short on stock not short on buyers, so this in itself, will keep prices steady. So I think it may be time for the ‘fence sitters’ to make a decision and get back into the market before they miss ‘the best home for them’ by being too price sensitive and not practical.

I hope everyone has enjoyed a great school holiday break and look forward to seeing you at the ‘opens’.

Cheers,

Steve

P.S. For all those interested rugby followers, the Mosman U12’s Cuda’s tour of N.Z. was a 3-0 white wash for our local team – winning all three games in Queenstown. Luckily, Robbie Deans who lives in Mosman now, can run his eye over some future Wallabies!!

For this week’s recorded Mosman real estate, Cremorne real estate, Neutral Bay real estate and Cammeray real estate sales www.rwm.com.au/news/

31.07.09Stephen Patrick2 Comments »

So let’s clarify a few points from an insider’s perspective. Property data is in all probability, ages away from being conclusive (after the result) and why, today does it still remains a dog’s breakfast?

Collectively none of these data collection institutions get it – they spread it and sell misinformation that is simply incomplete and many months away from accuracy.

The dilemma is quite simple. The property aggregators sell the information gathered from the agent, then continue to charge agencies to access its data … which is actually, the intellectual property of the agent. Until they get it right there is a very strong argument as to why agents should cease providing such data.

There are no better examples of such anomalies, when this week, the Australian Bureau of Statistics (ABS) announced that house prices fell by minus 2.2 per cent in the March quarter 2009. Australian Property Monitors (Domain Property Data) reported that its research identified that house prices increased by 0.1 per cent in the March quarter 2009. Australian Property Monitors works from exchanged property information and it is no secret that in the current market condition, many vendors instruct agents that the sale price is confidential and not for publication.

Therefore, it can take months (depending on settlement terms) to collect an exacting position which I will identify with the data I have collected. For the record, RP Data – Rismark reported that house prices were up 0.1 per cent in the March quarter 2009. I remain unaware that we supply any data to RP Data – Rismark. I would also add that RWM receives no payment for supplying any property data.

Mosman House Sales – 1 January 2007 to 30 April 2007

• Total sales – 139
• Total value – $350,165,720
• Median price – $2,200,000
• Average price – $2,632,824
• Highest price – $10,200,000

Mosman House Sales – 1 January 2008 to 30 April 2008

• Total sales – 119
• Total value – $309,519,612
• Median price – $2,700,000
• Average price – $2,919,000
• Highest price – $8,500,000

Mosman House Sales – 1 January 2009 to 30 April 2009

• Total sales – 62
• Total value – $86,621,000
• Median price – $1,525,000
• Average price – $2,221,051
• Highest Price – $8,500,000

Source: Australian Property Monitors (Domain Property Data) owned by Fairfax Media

I would suggest that property voyeurs are much more interested in niche markets , for example, Mosman, as against “stew” markets where all the data ingredients are fed into the one murky pot.

As you would have noticed the Mosman House Sales – 1 January 2009 to 30 April 2009 look a tad sick when compared to 2008 and 2007. So when I add our confidential house sales to the data the Total Sales move up from 62 to 71, Total Value from $86,621,000 up to $126,026.000. For the record, RWM has sold the greatest volume in terms of number of sales and total value over this period. The Highest Price also changes where the first number starts with a one (in excess of $10,000,000). This additional $39,405,000 in house sales makes a noticeable change to the current figures. It’s just that now you are the first to know and the aggregators are left shaking their respective heads. This is further complicated by the fact that the vast majority of sales data provided today leaves out the sale price.

I had trouble containing my excitement this week when an old favourite, Bobby Dazzler Carr, made an unexpected appearance, spruiking further debate about the condition of his once beloved Fort Crumble. Obviously, his work time sheets must now be down after he moved from Fort Crumble over to the Millionaires Factory.

The audacity of the argument that the Dazzler was the architect (or should that be builder) whilst presiding over the State of Decay. Whilst stopping short of revealing just exactly where all those “rivers of gold”, disappeared to, on the back of the financial floods from GST, stamp duty and poker machines taxes proved to be of little consequence. It was the system, not, the government the Dazzler declared (to those that listened – not many I think).

Of course it was , how silly of us to assume anything else as Fort Crumble now stumbles down an estimated $2 billion budget deficit by June 30. Just as interesting, south of the border, Victoria’s Fort Fabulous is in surplus and offering tax cuts because Jeff Kennett did what our very own Dazzler couldn’t deliver, while Kennett financially and politically, renovated his Fortress.

Tensions between Ruddy Fantastic and the latest landlord over at Fort Crumble are not that good to say the least. Ruddy Fantastic is presently conducting a three day jobs summit in Western Sydney, and no members from Fort Crumble were asked to attend – another clue?

As quick as a flash, Fort Crumble jumped the land tax rate for property valued above $2.250 million from 1.6 per cent to 2 per cent. The irony is that these properties are already (after tax) in negative rental return, so the landlords then increase their negative gearing tax deductions, which Ruddy Fantastic then picks up.

Will negative gearing be abolished in next week’s Fudge-it?

One should also not forget, that Fort Crumble is reportedly crunching the numbers to introduce its latest annual land tax grab which apparently applies to every property owner within the State of Decay. If true, this would be political suicide – but then again, when you have a $2 billion budget deficit Fort Crumble is now in critical decision or, should that be condition? Ruddy Fantastic would be thankful he resides north of Fort Crumble’s moat.

Next week’s Federal “Fudge It “ will be riveting, more particularly if the budget deficit blows in (or should that read out) around $70 billion as quite a few are predicting.

With elected politicians in overdrive on their Twitter accounts all will be revealed on next week’s Tweet’s – if you are not on Twitter, you don’t know what you are missing out on. Have a look http://twitter.com/ Compelling viewing indeed – love Twitter.

We are very happy to announce that each week we will showcase one of Tim Mooney’s aerial masterpieces in Virtual Realty News. Tim has been a subscriber for many years. After prolonged negotiations – we now can bring you these amazing shots exclusively. Tim has actually spent more time in the air than Superman – if you click on this week’s aerial photograph you will be taken to Tim’s website.

Cheers and Tweet’s ^__^

For this week’s recorded Mosman real estate, Cremorne real estate, Neutral Bay real estate and Cammeray real estate sales http://www.rwm.com.au/news/

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8.05.09Robert Simeon7 Comments »

Our office will be closed from December 24 until January 5 2009. For any parties wanting to contact one of our sales agents to arrange an inspection during the period that we are closed here are the contact phone numbers.

Stephen Patrick – 0413 834 848

Richard Simeon – 0411 499 906

Robert Simeon – 0411 856 969

Mark Manners – 0403 032 700

Jacqui Rowland -Smith – 0411 714 442

Marize Bellomo – 0414 972 203

Belinda Holmes – 0421 735 150

We wish each and every one of you a very Merry Christmas, a prosperous New Year, health and wealth in 2009 and beyond.

18.12.08Stephen PatrickNo Comments »

Despite the ongoing economic rumblings Mosman real estate sales, Cremorne real estate sales, Neutral Bay real estate sales and Cammeray real estate sales in 2008 have been mixed results thus far. It has become most increasingly difficult to call these unique markets given sentiments change based on an overload of data which more often than not remains strangely in the negative zone. Better known today as the Mosman myths and the real estate mysteries where facts never get in the way of a good story.

Better still the 2008 property “twilight” zones where (aside from media) the only thing that I see knocking is opportunity. Given the current propensity of living in the past like casting similarities to The Great Depression what many forget is that in 1995 our lives were then programmed for the greatest (not depression) change ever seen before – that being the Internet (exactly where you are now).

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21.11.08Robert Simeon6 Comments »

The fuel debate continues to raise many interesting forms of debate and a recent article that appeared in The Weekend Australian Financial Review on May 24 – 25 2008 by Deirdre Macken titled “HOW CARS DRIVE PROPERTY PRICES”, certainly raised more than a few eyebrows. “If the car were to encounter the perfect storm, it would be a confluence of record petrol prices, threats of oil shortages, congested roads, ageing infrastructure, and warnings about the link between car use and obesity.” Continue reading »

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30.05.08Robert SimeonNo Comments »

Some were calling it extra terrestrial… Others thought it might be due to the new look Richardson & Wrench property booklet… Some even suggested that it was caused by people wanting to help the Government coffers with Stamp Duty contributions and further assist Bob’s ‘blue gropers’! I personally had no idea what was happening! So I called for back up… then later for oxygen! The amount of people at last week’s Open for Inspections was amazing! When you have around 700 people turn up for your first two open for inspections, the memories of the 1988 bull market start to spring to mind. Real estate is all about embracing change. The market moves in mysterious ways and the present conundrum has inspired many to keep a close eye on the up coming auction events.

The market is offering some very attractive property at the moment, so it is not unusual for the buyers to become emotionally involved in the buying process. This in all probability delivers bullish prices because in simple terms, demand is far exceeding supply. This could change quicker than a well known agent’s back flip on a property price estimate! We are about to release another $15,000,000 to the market over the next week or so, so put the valium away, sanity will prevail!! Yes, the April “First 8″ auction is about to launch, and this time we will be submitting nine properties on April 9! The reason why we have one more than eight… you must remember that all eights have a coxswain… got ya!! And on it goes, the May 7 list is already half full, so there is good news on the horizon, for some of us anyway.

I am pretty sure that those who lack integrity (that is the principal requirement of doing business in our industry) will raise their ugly heads again. The market is in a bit of a frenzy and yet again, we see first hand these ‘bleeps and bloopers’ coming back. Yes, I am pretty sure that the ‘underquote/overquote’ will become a problem for the market once again this year. Whist Bob was quick to act on his beloved ‘blue gropers’, the cries from within the industry for the much awaited legislation introduction appears to be looking somewhat anaemic! A property market like the current one draws on the experience of the agent. You can’t, as an agent, read a book on being streetwise. Whilst many of the ‘new kids on the block’ will do their fair share of huffing and puffing, there will be some vendor casualties with regard to price expectations, and there will be plenty of property selling for a lower price than the pre-auction bid. Unfortunately, this is nothing new. One thing the 2002 property market has, is a record number of inexperienced agents not displaying ‘P Plates’! We play with very large amounts of money as agents and wisdom and experience should be our essential attributes.

This Saturday will see the official launch of the ‘ButtsOut’ anti-littering campaign at Balmoral Beach! For those who want more information about the campaign, have a look at this website. Steve and I will be there to hand over the sponsorship cheque and we could not be happier. It all starts at 1.30pm at the Rotunda, Balmoral Beach. It is a great campaign and we jumped at the opportunity to put something this important back into the community.

The top end is moving along very nicely. 13 Carrington Avenue, Mosman sold for $2,600,000 and 1 Illawarra Street Mosman which made the briefest ‘stage entry and exit’, sold it in just a few hours for $3,350,000! More happy announcements are only editions away. I must admit that my ribs are still a little sore when last Sunday, I read a report on the real estate market for all of the suburbs of Sydney. Apparently it is predicted that Mosman will have an upwards trend in houses of 11-15%, and in home units of 10-14%. There was very little substance to this prediction, it was nothing more than a ‘pin the tail on the donkey’ theory. Some might argue that it is a ‘heads or tails’ market. We are not sure at this early stage of the year, but we have some very new shiny front door keys! Watch your inbox… ^_^

P.S. Late Breaking News… Last night we smashed a new highest price record!!! I’ll tell you about that next week! Well Done Stephen Patrick.

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9.03.02Robert SimeonNo Comments »