WHEN PROPERTY RUNS – YOU CAN’T HIDE!!

WHEN PROPERTY RUNS – YOU CAN’T HIDE!!

There is always something happening in Mosman which explains the eclectic mix, but somethings can never be explained, which further enhances the appeal. Take the serenity of our local government where this week it was alleged that the councillors are bringing back the biff. It may be Spring, however we are talking about and entirely different version of the ‘slip, slop and slap’, who would have thought!! Maybe just maybe, the fact that the ever popular cafe car wash (which felt a different kind of heat when it caught fire last week) was depriving the Mosman tractors of their weekly bath and not to mention their drivers of a caffeine hit. Whatever the case, things are heating up and it is just not the property market that is showing signs of vehemence.

The begging question at the moment is, what brought about the sudden change in attitudes to the property market, which is seeing some properties selling within a forty eight hour time frame? We launched a home at 14 Cabramatta Road this week, the first advertisement appeared in Domain North on Wednesday and we took upwards of forty telephone enquiries in the day. We then had an unofficial open for inspection on Thursday where eighteen couples arrived and five copies of the contract were issued. The home is being quoted at $2.250 million so we could see another record price tumble in that street. When we are asked what is prompting the market, we politely respond that “it is a combination of pin stripes and annual bonuses trading places”. The major concern at the moment, is that should homes continue to sell well before the completion of the marketing campaigns, we will surely see price explosions – not implosions, as many have suggested previously. It is well documented that housing volume is well down on past years – although wages for many who reside in Mosman are well up, which explains why all of a sudden the heat is on.

Touche to Alan Kohler who did not miss that BIS Shrapnel are now forecasting (which is another way of saying guessing) that interest rates will be 6.5 per cent next year. What most forgot was that earlier this year, they were forecasting (guessing) that interest rates would be 9 per cent next year. Maybe BIS Shrapnel may like to change its name to BS Shrapnel. In his article “Oil shock to housing shocker”? in The Sydney Morning Herald, Mr Kohler wrote ” This firm had previously forecast interest rates of 9 per cent next year, so it was interesting that the media reporting of its latest report did not say: “BIS Shrapnel cuts rates forecast”. Whilst on the same article it was interesting to read that “Sydney prices rose by about 175 per cent from 1994 to 2004 and have since fallen 10 per cent”. One must note that the 10 per cent figure was based on June figures provided by Australian Property Monitors. It should also be noted that in 1994/1995 Mosman had 495 house sales and this year it looks very much like being under the 200 mark. Alan Kohler also brings out a great e-zine a couple of times a week and it is great reading, if you want to read more simply click on the link www.eurekareport.com.au For the record I am a subscriber, and Alan is a subscriber to ‘Virtual Realty News’ also.

It appears that vendors and agents will now fast track marketing campaigns, given that current marketing campaigns and properties will run through the school holiday period. It should be pointed out that not all sections of our niche markets are consistent with other price demographics. It is still an “each to their own” market and some properties will do better than others which has always been the case. Those properties that have the ‘wow factor’ have always exceeded price expectations and will always continue to do so. Residential home negotiations are an emotional negotiation not a commercial negotiation process, with Mosman always being considered as an indulgent market.

Our Internet sales moved up to $359,825,700 and it will climb even higher next week. Those who are intending to inspect 4 Waitovu Street this week need not bother as it too has sold before the auction date. Congratulations to the vendors – who are also subscribers. If you are interested in a property and you have concerns that it may sell without you getting an opportunity to express your interest, make sure that you have advised the selling agents that you want to be kept in the loop. That way if they sell and you are not advised you have recourse. Have a great long weekend for those who get them, if you are going to the beach don’t forget to “slip, slop and slap” Cheers ^__^

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