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.