With NSW now living up to its reputation as the ‘State of Disarray’, our esteemed leader Bob ‘Mr Tax’ Carr can count his lucky stars that he is not accountable to a Board of Directors based on his ‘train’ of thoughts. Carr, and his appointed ‘Station Master’ Michael Costa (who was once a train driver) are now costing the economy millions of dollars in lost revenue. They have excelled in looking after their party faithful. I guess their spin doctors will come out next week with the news that train vandalism is at an all time low. Then, to make matters worse our water supply is evaporating at a rate equivalent to the State’s confidence in the powers that be!!

The real estate market is travelling at the same pace as a NSW train at the moment with regard to new listings, and both are having timing problems. We have some great new properties set to hit the market in the coming weeks, although in comparison to previous years at the same time, the market is well and truly down on property. One can only hope that the ‘Governor of Moolah’ adopts a wait and see policy when he addresses the Board in March, with inflation a concern for many. A rate hike could ravage the Western Sydney property market. Our markets are being greeted with very strong buyer enquiries at the inspections, and user statistics for are much higher than at the same time last year. So at this stage it would be correct to suggest that purchaser intensity is at a very strong level. Those who suggested incorrectly that the 2004 market would be sombre are now realising that once again they got it wrong. Interest rates will play a strong part in many parts of the property market, however in the Eastern Suburbs and Northern Suburbs it will not play a determining role. Supply is what we are monitoring as the key trigger for our market, and the present school of thought is that current demand well and truly overshadows the present stock levels.

When looking at the overall property market, different areas have shown abnormal price growth. Over the past seven quarters annual growth has averaged out around eighteen per cent. Some areas have recorded much higher growth and for obvious reasons will be of strong concern. What needs to be identified is what is perceived to be the ‘fair value’ for their respective markets. Mosman, Cremorne and Neutral Bay have not been setting their chimneys alight, and for the better part of the last few years their growth has been in a holding pattern. We believe that the annual growth this year could ease itself down to around ten per cent due entirely to interest rate manipulations. Another factor that will definitely have an impact on auction clearance rates (with supply being on the light side) are agents who are already pumping-up the opinions of value. The new legislation will nail plenty of agents who believe in applying fraudulent values to homes in the hope of winning the business. Whilst some vendors may be impressed with this inflated price, a property that does not sell in the first campaign, can ultimately cost them many thousands of dollars.

At the moment the property market is shaping up to being entirely different from what we have witnessed in recent years and advertising a home “within easy walking distance to the railway station”, may not be particularly pertinent in the future. I guess having to water the garden with bottled water is far too outrageous to consider at this juncture. After all we do live in a ‘State of Disarray’. Cheers and clink ^__^

Leave a Reply

Your email address will not be published. Required fields are marked *