Note these words from the 1916 forward of The Battle of Armageddon: “Although all have been growing fabulously rich, all are more discontented than ever before and more fearful that something will occur to hinder their enrichment and to turn the streams of wealth to the ports of the competitor. The same spirit is manifest every where in gratitude for the present and the past, fearfulness for the future, and a selfishness which pays little heed to the Golden Rule.” The only problem is that we have thousands and thousands of Golden Rules – more confusing is that the Australian economy is now in its 14th year of expansion according to our popular “Governor of Moolah” who came out this week quoting “Gresham’s Law” which simply put means ‘the bad currency drives out the good’.

With Ian Thorpe stating last week, that in his opinion the sport of swimming was “in some ways over-exposed”, one would then find it difficult to contain their excitement if he was asked his opinion on the property market reporting. “Sunday just is not Sunday without a…” property market shellacking !! Despite interest rates remaining at historical lows, one obvious pattern is, that home buyers are consistently snubbing their noses at the Public Auction method of sale. However last Saturday, we did sell a home at 103 Neerim Road Castle Cove under the hammer for $2,275,000 which restores some faith in the system. What is becoming difficult to explain to prospective purchasers is that a property has never before in history been called on the market on a no bid !! However if you prefer to continue to sit on your hands, despite going to the trouble of requesting a contract, ordering a building and pest report, then attending and registering for the auction, we would like to welcome you to a game of ‘gazump the purchaser’. We are seeing more and more of this creeping back which is a positive sign of increased activity in the market, and for the record, again it is the agents who see this and not the journalists as some might believe to be the case. Next week, we will carry out our quarter in review and it may be a record quarter for exchanges !!

What many need to know is that if we are (presumably) going into choppy seas, why are more people not selling, given that a school of thought is that prices are heading south. One would think that the shrewd punters of bricks and mortar would be cashing up, which is not the case as overall, our market has anecdotal evidence that the number of properties being sold is reducing by as much as forty per cent per annum. What we do know, is that the property market sometimes resembles a salad – with not everyone enjoying the taste. This week we sold an apartment in Ben Boyd Road which was purchased off-the-plan for $340,000 four years ago by an investor and this week it sold for $340,000 which leaves a clue for off-your-head acquisitions. On the other hand, a one-bedroom apartment we sold exactly twelve months ago to an investor for $275,000, we re-sold this week to another investor for $317,000. What you don’t read is what the individual capital gains are with individual properties – which further highlights why so many judgements are clouded !!

I believe that when we do our quarter in review next week you will see that (I am guessing for the moment) 95 per cent of our sales were done by private treaty and hardly any of these sales have been recorded. This, despite our industry legends appearing weekly and further purporting to be knowledgeable with a firm grip on market activity.

With the market coming to a close this week it is actually perfect timing (many agencies may disagree). We will not be offering any new houses for a month given the school holidays. This will enable us to clean the decks with the existing properties, and also enable us to sign-up new properties for our next release. Apartments will trade all the way through the month so it will be interesting to monitor what happens in that department in the coming weeks.

The team at RWM wish you a great Easter and when it comes to the accurate reporting of the property market there are plenty of bunnies out there too !! Cheers ^__^

Leave a Reply

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