Final Report for 2011

We are now less than 2 weeks out from closing for the Christmas/New Year break and I am sure many of you have better things to think about than what is happening with the property market. With this is mind I will try to keep my commentary short.

 I would also like to take this opportunity to wish you all a safe and happy holiday period and a prosperous New Year. Thank you to all those who took the time to read my monthly reports and I hope you found them of some use.

I have noticed a big improvement in buyer sentiment over the past month, particularly following the first interest rate cut. The RBA's decision a couple of weeks ago to cut rates again should further assist both prospective residential property buyers and current mortgage holders in the lead-up to Christmas, particularly now that each of the big four banks (ANZ, CBA, Westpac and NAB) have passed on the rate cut to their customers in full. 

There are some extremely attractive 3 year fixed rate deals at the moment. I have seen some as low as 5.49 per cent. It is also interesting to note that Australia’s largest mortgage broker, AFG, reports an increase in fixed loans from 7.9 per cent in July to 17.2 per cent in November.

Interest rates are an important factor when people are making purchasing decisions but in the property market on the Sydney's lower north shore it is not the only one. There are other issues that have far greater influence. Global issues, such as the European crises are a major concern for many and have a far greater impact than a quarter percent rate cut.

The good news is that the market under $1 million is still strong due to both first home buyer and investor activity. We are still seeing some good sales at the top end as well particularly from overseas buyers. There are also some amazing buying opportunities for properties above $3 million.

I have said this before, for the market gain confidence we don't necessarily need to see a lot of growth in prices but rather a period of stability across the board and an increase in the number of transactions. If what I am hearing is anything to go by there's a good chance this will happen in the first half of 2012.

As I mentioned earlier there are exceptional buying opportunities in the prestige sector above $3 million. If past history is anything to go by top end home values can rise rapidly as soon as economic confidence returns.

RP Data figures suggest the window of opportunity to buy at the bottom of the cycle is closing. Capital city home values recorded their best result in seven months in September, with falling prices slowing to only -0.2 per cent seasonally-adjusted while regional houses rose 0.1 per cent.

First homebuyer activity has surged and now comprises 16.4 per cent of the market, up 27 per cent on June this year and 40 per cent on the same time last year. First homebuyers stand to save almost $18,000 in stamp duty on a $500,000 purchase if they buy before 1 January. There is still time to take advantage of this.

I should probably finish up by saying that we have some exciting properties that will be launched to the market in January next year. If you are looking to buy over the holiday period I am more than happy to discuss with you what I have coming up in the new year and could possibly even organise a  “sneak peak” for you. If you are thinking of selling and would like to discuss your options please feel free contact me.

I am looking forward to putting a few more sales together before Christmas and am extremely excited about what 2012 will bring. Once again, thanks for your continued support and have a great holiday.

Don't miss the deadline!

The end of the year is fast approaching  and for first home buyers time is running out to buy a property without having to pay stamp duty, for some this represents  a saving of nearly $18,000

For the past couple of years there have been numerous government assistance and incentive schemes designed to make it easier for first home buyers to enter the property market.

There have been changes over the past few years and how the scheme currently works is as follows:  If you qualify as a first home buyer and you purchase a property for $500,000 (or less) to live in then you are exempt from having to pay stamp duty. That is a saving of $18,000 on a $500,000 property. There is also a pro-rata discount for properties purchased between $500,001 and $600,000

As of January 1 2012 this scheme changes again. The stamp duty exemptions will only apply if the property purchased is brand new or an off plan purchase. 

Latest data from the Bureau of Statistics shows increased buying activity in the Sydney housing market. Most of the increased activity was driven by a 15.9 per cent surge in first-home buyer housing loans over the month to the highest level recorded since December 2009. This surge reflects the impact of the expiry at the end of 2011 of the stamp duty concession for first-home buyers for the purchase of established properties.

We are seeing a large number of first home buyers in the market place looking to take advantage before the grant runs out. Properties that meet the criteria are experiencing strong enquiry, attracting good numbers of buyers at open house inspections and these properties are selling more quickly than those in other market segments.

If you think you may qualify as a first home buyer don’t miss this final opportunity.  We have a number of properties which would qualify for the exemption. Go to our website for further details: www.century21mosman.com

If you are a property owner thinking of selling, now may be the perfect opportunity to capitalise. These types of properties are selling for a premium at the moment and come January 1, 2012, a large proportion of the buyers will disappear.

There is still time to sell or buy  before the end of the year.

Feel free to contact me to discuss your options.

Joshua Wygoda

0414 666 190

Are you planning to sell in 2012?

With only 6 weeks to go until Christmas, for those thinking of selling their property early next year its hugely advantageous to start thinking about it now.

Our marketing campaigns generally start after the Australia Day long weekend with the first Auctions being called in late February or early March.

So why start thinking about it now?

There is a common misconception that the market goes completely quiet over the December/January holiday period. This is true to some degree but based on my experience over the past few years here is what really happens:

Decreased Stock Levels: Many vendors think this is the wrong time of year to be selling a property so they either wait or pull their properties off the market thinking there are no buyers around. Lack of stock, or choice, always leads to better sales results.

International Buyers and expats: In the holiday period we see an unusually high number or buyers from around the globe and in particular ex-pats who are looking to return to live in Sydney at some point.

Local Buyers: Even though many local buyers are away or have other things on their mind, there are some that use their down time to search for a new home or investment. They put their feet up and read the real estate sections or let their fingers do the walking by looking through the various real estate internet sites.

Whilst I would not recommend entering into a full marketing campaign it can be advantageous to have a strategy in place to take advantage of the holiday period. We may get lucky, sell the property and save you the hassle and expense of a February/March campaign.

If the property is not sold by the end of January, then we launch into a marketing campaign in February. Being prepared we become first cab off the rank in attracting new buyers.

If you are thinking of selling please contact me so that I am able to discuss the most appropriate strategy for your property and circumstances.

Call me anytime on 0414 666 190 or email me joshua@century21mosman.com

Reserve Bank of Australia lowers official cash rate to 4.5 per cent bringing much needed relief to the Australian residential property market

Today's decision by the Reserve Bank of Australia to lower interest rates could be the news many prospective buyers have been waiting for to make a real estate decision, which in turn may see increased activity in the residential market. A lack of certainty surrounding the direction of interest rates over the course of 2011 has resulted in many buyers showing reluctance to commit to a property purchase.

The Consumer Price Index released by the Australian Bureau of Statistics last week showed easing inflationary pressures on the domestic economy, paving the way for the Reserve Bank to reduce the official cash rate by a quarter of a percent. The decision follows several months of heightened concerns surrounding global financial markets, with weakened consumer confidence and affordability issues on the national front.

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