TOM PANOS - MARKETING YOUR PROPERTY

SYDNEY'S BOOM-TIME AUCTION CLEARANCE

Click this link to see the original article as is appeared on smh.com.au on 24 February 2013

 

By Andrew Wilson

The Sydney and Melbourne auction markets strengthened this weekend despite a surge in listings.

Both markets have recorded solid clearance rates this year, but the weekend loomed as the first real test of 2013.

Sydney's 513 listings for auction and Melbourne's 959 were double the numbers offered for sale the previous weekend and higher than the same weekend last year.

However, the two cities recorded strong clearance rates. Sydney's 76.3 per cent is the highest rate for years and reflects boom-time activity similar to the market in 2010. It follows a rate of 71.6 per cent the previous weekend and indicates growing market momentum.


For the same weekend last year the clearance rate in Sydney was 56.6 per cent, showing how far the market has come over the past year.

There are also signs of a more generalised upswing, with increased buying in the recently dormant prestige market. Eight properties were reported sold in Sydney with a value above $2 million, including one sale of $3 million and another of $5 million.

The inner west remains the auction hot spot, with the highest regional clearance rate of 83 per cent – and this from the highest number of listings.

The median price for houses reported sold in the inner west at the weekend was $983,750; for units it was $573,000.

The highest reported sale in Sydney was a six-bedroom house in Vaucluse that sold for $5.15 million. The lowest reported sale was a three-bedroom house in Carramar for $368,000.

Like Sydney, Melbourne recorded its strongest result since the house price boom of 2010 despite a high number of listings. And like Sydney the weekend's 71.6 per cent clearance rate was significantly higher than the rate recorded a year ago on the same weekend.

Signs are emerging in Melbourne that the buyer momentum in the prestige market through most of last year may be spreading to mid-range price sectors, particularly in the eastern suburbs.

It's no secret or surprise that the stronger housing markets in Sydney and Melbourne are being driven by historically low interest rates and rising confidence.

The heating up and the inevitable price rises that will follow will provide the Reserve Bank with a conundrum given signs of continued weakness in other sectors of the economy.

Dr Andrew Wilson is senior economist for Australian Property Monitors.

CLICK HERE TO DOWNLOAD SATURDAY'S AUCTION RESULTS

CHARLES TARBEY'S OUTLOOK FOR 2013

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As well as the usual Market Update and Buyer and Seller Hints and Tips I will also be bringing you interviews with Industry Experts... Charles Tarbey and Tom Panos just to name a few!

RBA LEAVES CASH RATE ON HOLD AT 3% IN FEBRUARY

By Larry Schlesinger

propertyobserver.com.au

 

The Reserve Bank has, as expected, left the cash rate unchanged at 3% today following its February monetary policy meeting.

A poll of 28 economists carried out by Bloomberg last week found that 24 expected the RBA to leave the cash rate unchanged today.

Preliminary figures released by ABS today revealed that capital city house prices increased by 1.6% over the December quarter, following a revised 0.1% fall over the September quarter, indicating that previous rate cuts may be starting to have an impact on the housing market.

Commenting on the decision, RP Data national research director Tim Lawless said the RBA was likely to be "reasonably satisfied with how the housing market has played out since they embarked on the rate cutting cycle back in November 2011".  

"Since that time dwelling values across the combined capital cities of Australia have increased by 0.8%, and values are up 3.1% since bottoming out at the end of May last year.  

"Most other indicators are also showing some subtle improvements, albeit from a low base.  
"Consumer confidence has shown some improvement, commodity prices are once again on the rise, and share markets have shown some consistent gains as well.  The big wild card remains the labour market; how high will unemployment go and at what level will the RBA react with a further cut to the cash rate," he says.

Michelle Hutchison, spokesperson for financial comparison website RateCity.com.au, said that while there was no  cut from the Reserve Bank today, "it is possible that we’ll see lenders make an unprecedented move to cut their rates out-of-cycle this year".

"Lenders have kept 40 basis points on average from variable home loans since rates began to fall and with wholesale funding reportedly lower, they have room to move," she says.

"Borrowers need to keep a close eye on their lenders, find out what rates you’re paying and compare it to the rest of the home loan market using RateCity. The slow lending market is set to continue so borrowers are in a great position to haggle for an even better deal.”

PREDICTIONS FOR 2013

This will probably be my last posting for 2012 so I will take this opportunity to thank all my clients and subscribers for their ongoing support over the past year. I wish everyone a very Merry Christmas and a safe a happy holiday period and look forward to catching up with everyone in 2013.

Now on to business

Everyone is asking what my predictions are for 2013 and up until now I have tried to avoid making such predictions.

I am expecting next year to be a better market, especially with the latest official interest rate cut taking rates to a record low and the experts predicting further cuts in 2013. However, in the past interest rate cuts would have a profound effect on the property market but the effect of this round of cuts has been softened by the banks not passing them on in full. 

That being said, since the cuts last week I have noticed an increase in the level of buyer enquiry, especially in the lower end of the market.

I am starting to think (or at least hoping) that we are nearing the final stages of a buyers’ market and hopefully over the next 12 months prices are going to rise. If you are a buyer looking to get into the market, upgrade or buy an investment, now is the perfect time. With fixed interest rates in the low 5% bracket you no longer need sky high rents to make your investment pay for itself.

I won’t talk too much about statistics other than to say Auction clearance rates have been over 60% for pretty much the past 2 to 3 months which indicates some stability and confidence in the market.

I know many people at this time of year begin to make plans for the following year and one of the items on the agenda is property. Both buying and selling.

As I said earlier, if you are thinking of buying now is a great time and the low interest rates are too good to resist. 

If you are thinking of selling it may be worth your while using the holiday period to prepare your home for sale or if you are ready to sell but think you need to wait until after the holiday period then you may in fact be wrong. The holiday period presents a perfect opportunity to take a soft approach to selling your home. I find that over December and January there are still plenty of buyers around: ex-pats returning home to visit family, people from out of town looking to buy a city pad or investment or simply local buyers looking to get into the market, upgrade or downsize.

Last Christmas holiday period I sold 40% of my February 2012 listings before the end of January using this approach.

IT'S TIME TO GET INTO THE REAL ESTATE MARKET: Terry Ryder

By Terry Ryder

www.propertyobserver.com.au
Thursday, 06 December 2012

 

This is as good as it gets, folks. It’s time to stop procrastinating and get into the real estate market. 

The Reserve Bank’s latest reduction in the official interest rate, which will probably translate into a 20 basis point decrease in mortgage rates, is the icing on a cake that’s pretty tasty for property buyers. 

The ingredients of the cake include higher incomes, lower prices, greatly improved affordability and interest rates at GFC levels, against a background of solid economic performance, low unemployment and, at long last, rising consumer confidence. 

According to the figures that comprise the HIA-CBA Housing Affordability Index, the median dwelling price is 5% lower than it was two years ago.

In the same time frame, average weekly earnings have risen 7.45%, while the interest rate marker they use has dropped from 7.12% in March 2011 to 6.03% in September 2012. Since September, we have had two interest rate reductions from the RBA. 

So we have had seven consecutive quarters of improving affordability, followed by the rate cuts in October and earlier this week. 

Figures from Mortgage Choice show that, since October 2011, the average standard variable rate has reduced from 7.79% to 6.6% (prior to this week’s RBA cut). Monthly repayments on a typical $300,000 loan over 30 years have fallen from $2,158 to $1,916, a saving of $242 per month. 

Looked at another way, those who have maintained their repayments at October 2011 levels will have reduced their loan terms by close to eight years, saving well over $100,000 in interest over the life of the loan. 

Buyers have been responding to the improving situation – gradually but steadily – with loan commitments to owner-occupiers up 5.5% in the past 12 months and loans to investors up 4%. 

But surveys have suggested many consumers were awaiting another trimming of the official interest rate before getting into the market. Now they’ve got their Christmas present. 

So the fence-sitters are all out of excuses. It’s really not going to get any better than this. 

Capital city prices have stopped falling and are now trending up in most the big cities. We have now had six interest rate cuts since October 2011 and we are unlikely to get more any time soon. 

Everything you’ve been waiting for is now in place. Stop mucking around and get active.

Terry Ryder is the founder of hotspotting.com.au and can be followed on Twitter.