WHEN HE SMELLS FLOWERS, A PESSIMIST LOOKS AROUND FOR THE FUNERAL!

WHEN HE SMELLS FLOWERS, A PESSIMIST LOOKS AROUND FOR THE FUNERAL!

Once upon a time, property was all about the three P’s, Position Position Position !! Today, we still have the three P’s however, they now resemble Positive Property Performances. Overall, the real estate market is only as strong as those who wish to participate in it. To this very day, those participants show very little signs of easing their intensity. The business end of our market is the players, and with businesses still posting healthy profits, the Positive Property Performances are still attracting the players. Take this week’s two very public Eastern Suburbs sales. “Craig-y-mor”, purchased in March 2001 for $10,700,000 sold for $16,250,000, the purchaser simultaneously selling his neighbouring home for $12,000,000. It was also purchased in 2001, for $8,000,000. Again, Positive Property Performances.

The Productivity Commission is set to be re-named the Un-Productivity Commission, given that all its recommendations are ”going through to the keeper”. The Federal Government appears to be embracing the ancient tradition of the “Three Wise Monkeys”, adopting the Three Truths – Hear No Evil, See No Evil, and Speak No Evil. Makes one wonder why it established the Commission in the first place, as it gives the impression that it is already aware of all the answers.

The Real Estate Institute of NSW has released the March quarter figures, which predictably revealed that the turnover rates across the state continue to decline. The volume of house sales fell 30.7 per cent, units 34.4 per cent and land by 30.1 per cent from the December quarter figures. We believe that this will be the pattern for quite some time as the property pie transforms itself into a proverbial party pie. With just 5900 homes in Mosman alone, over 4000 have changed ownership since 1995. The majority of these owners are now calling architects and builders, not real estate agents. With a thirty and a bit decline in volume this will ensure that property prices remain balanced with zero capital appreciation and we do not envisage any significant capital depreciation.

The Real Estate Institute of NSW has been busier than an auctioneer’s gavel of late, having this week released a friendly reminder to agents regarding “estimated selling price guidelines”. The Department of Fair Trading, has not followed through with the policing of the under-quote over-quote legislation and just last week a property in Balmoral was sold, by another local agency, for $3,750,000. It was initially quoted at $2,500,000 to $3,000,000 to a VRN subscriber. The legislation states that ” Section 72 of the Property Stock and Business Agents Act 2002 prohibits an agent from making false representations regarding the true estimate of the selling price of a property to either a seller or a prospective seller of residential property. The agent should not exaggerate or over quote an estimate to a prospective seller in order to obtain a listing. The agent’s opinion of the selling price in the agency agreement is deemed to be evidence of the agent’s true estimate of the selling price, section 73 Act”. ” Advertising an anticipated price or a price range or the quoting of a price which is less than the agent’s true estimate is a breach and may be considered ‘bait advertising’ “.

With the end of our financial year now upon us, the team at RWM posted its best ever year, which is a fantastic result. We have much to thank the Internet for and being an energetic e-business in real estate is certainly the future. It is looking more exciting than ever. Each week we monitor our Internet activity, and we pass this information on to the property portals. The first figure is the number of visitors in that week, and the second is the progressive total for each property. Houses Units As you can see we are still observing positive traffic numbers, buyers in the market today first search for homes with their fingers. The Internet allows us to monitor their finger prints.

For those professing their belief that the real estate market has found its “Holy Grail”, before you toast the market and drink from the cup, bear in mind the three P’s Positive Property Performances !! Many in our industry are drinking from a different cup, cheers and clink ^__^

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