THE EASTER BUNNY DELIVERS!

THE EASTER BUNNY DELIVERS!

You could say that the market has been ducking for cover this week with tsunami warnings and the Reserve Bank of Australia’s (RBA’s) announcement that for the moment, the cash rate target will remain at 6.25 per cent. It appears that the interest rate debate will run for the entire year. It will make for compelling reading as the opposition will be willing rates up in an election year, to put more pressure on the government.

What we never hear in the interest rate debate, is the number of borrowers that factored in higher rates when they took out their respective mortgages and are now at their upper-most ceiling rate ? This debate always suffers greatly from perspective. If rates increase when the RBA meets next month yes, this will be a ten year high. However, it should be noted that those who took out mortgages ten years ago, will experience double growth in asset value.

May will be a very interesting month indeed as the RBA meets on May 1 and one week later, May 8, the Federal Government delivers the budget. Even funnier was the comment a few weeks back by RBA Assistant Governor, Malcolm Edey, that the bank was monitoring inflation “month by month”. Well the directors do meet on the first Tuesday of each month, so what else would they be discussing – their footy tips ?

It was report time this week with the March quarter 07 now complete. We always compare quarters from the previous year and here are the results. Apartment sales in the March quarter 07 were up 57 per cent on the March 06 sales volume. Income from apartment sales was up 50 per cent for the quarter. House sales in the same period jumped 60 per cent and income from house sales increased 65.69 per cent. So our business model continues to exceed expectations. I was puzzled that just ten out of our last thirty nine sales were to subscribers, so we need to work harder on that level. Internet sales currently sit on $572,374,100.00

We predict that our market will continue to produce strong results through to the end of the June quarter 07 and beyond. With the school holidays commencing today and finishing on April 23 we don’t expect to see a noticeable change in volume as marketing campaigns will commence straight after Easter.

It was interesting to note that many agencies and agents were claiming March 2007 as an all time record month for their businesses. It did not eclipse our all time record which was set back in November 2005. March 2007 was our second highest month in sales commissions. The reason that more than a few businesses are improving, is because those at the top, have invested vast amounts of money into the latest technology. And the results then speak for themselves!

This move by the larger agencies to online communications was emphasised this week by a government scheme to limit calls by telemarketers, which will come into force next month. The Do Not Call Register will allow people to put their fixed lines and mobile numbers on a list, so that they won’t receive telemarketing calls. Groups that will be allowed to use telemarketers, include government bodies, educational or religious organizations, registered political parties and charities.

Real estate agencies are not exempt and this comes into force from 31 May 2007. Gone are the days of unsolicited sales calls and this is a step forward. Many real estate agents will not agree, however their arguments will fall on deaf ears. If you attend an open for inspection and provide a contact telephone number, the agent is allowed to contact you as part of their follow–up process. What will happen now is exactly the way we have been running our online business for the last seven years – interested parties will be data based. Where it becomes even more interesting is that parties will restrict the number of agencies who will have access to their personal email address, as the next step could be inbox saturation. The proven real estate online businesses will simply get bigger and bigger as will the successful online newsletters.

Have a great and safe Easter. If you are a buyer looking for a home with a tennis court under $4,000,000 please email us at tennis@rwm.com.au as we have a ‘very quietly listed’ home on our books this week. Cheers ^__^

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