THE WEEK WAS FAR FROM WEAK!!

THE WEEK WAS FAR FROM WEAK!!

With one Double Bay agent posting a record week with $51,000,000 in sales, across the board it was a very impressive week for our much maligned property market. With the tabloid property journalists (except Title Deeds) giving the market an absolute caning with headlines of mass destruction, the resolve of the property market continues to prove them wrong. The rule for success in the current market is simply getting the values correct. This week we auctioned 25 Hunter Road Balmoral it was sold $100,000 over the reserve for $1,900,000. We had seven buyers registered for the auction; our price estimation during the campaign was $1,800,000 – $1,900,000. The Real Estate Institute came out with their March quarter figures which identified that Mosman house prices had fallen 22.7 per cent. In the December quarter, the median price for a home in Mosman was $1,810,000 which was a quarter increase of 17.92 per cent. In March, they claimed the median price to be $1,400,000 which is a drop of $410,000. It should be noted that this figure was compiled on fewer than fifty sales. We are certainly not applying a twenty per cent reduction in prices when we are assessing properties; if the market was ailing then we would see clearance rates well below twenty per cent. The figures for units are much closer to the mark, with the median price in Mosman for December being $465,000 increasing during the March quarter to $471,000 which was a 1.29 per cent increase. This is exactly in line with what we have been reporting all year! We sold an apartment this week on Middle Head Road for $927,500. It was purchased in November 2002 for $850,000. We also sold a unit in Bridlewood Gardens for $880,000; an identical unit (below) sold a month ago for $825,000. In the last ten days, our Home Unit Department has carried out nineteen “opinions of value”. Given the ninety five percent conversion to listings, our database will be working overtime.

It is not just the apartment market that is full on; we are now listing plenty of homes so stock levels are not a problem at the moment. Many vendors are opting for Internet marketing, before going to a full advertising campaign. Internet marketing is our ideal technique where technology and negotiation skills come to the forefront. A few editions ago I predicted a very strong May/June market and by all accounts this is certainly the case. The median price for a home in Mosman will climb back up again without a shadow of a doubt, then the tabloid journalists will write that the June quarter is overheating again. Makes one wonder why the real estate market is on trial every week !! It will be interesting to see how the Governor of Moolah reads it, given that the bank was doing hand stands with the news that property market prices had fallen 8.4 per cent in the March quarter. I think that the head teller may not be a happy camper when he reads the June quarter figures.

The NSW Treasurer must be using the same speech writer as Anthony Mundine, given his recent comments. ” An overheated property market is no good for the economy, no good for the community and no good for young people”, said Egan. Well given that his Treasury has an annual estimate (of transfer stamp duty) for 2003-04 set at $3.9 billion, maybe this modern day genius of financial disaster will donate this money back to the property buyers. Egan also said that he “would be happy to see prices remain unchanged for the next few years”, which means that his Government would not make a single razoo out of his brilliant 2.25 per cent exit stamp duty. You can be the judge on those little pearlers.

It seems that the ‘vocal virus’ is not confined to the one Minister. ‘Cranky Franky’ Sartor who holds the position of Useless Minister, (I mean Utilities Minister), is concerned about his H2o levels, with Warragamba Dam again falling to 51.2 capacity. ‘Cranky Franky’ said ” We are reaching a point where our dams will be closer to being empty than they are to being full.” The NSW Government is set to introduce permits to fill swimming pools and also limit hand-held hoses. The Government has a fantastic strategy in place to re-fill the dams, they are hoping that it rains !!

Watch the clearance rates rise, and the water levels continue to decline. It is generally agreed that some people are wise and some otherwise……..Cheers & clink ^__^

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