Weekend Activity - 15th & 16th September

Weekend of 15th & 16th of September 12

With the weekend came great weather and lots of active buyers. Average of 6 buyers out per property with 3 offers resulting from these inspections. Big mixture of first home buyers, upgraders and investors looking to secure a property while the options are available. Many of these people requested the number of a broker many of my clients use to make sure they are getting a good rate and have the best bank for them. Fingers crossed these offers will result in some sales for happy buyers and sellers.

My Home Opens for the weekend were located in Canning Vale, Cannington, South Lake & Seville Grove. The office is handling sales for clients from Coogee to Munster to Cardup. Huge variety of properties on offer from the team at Ray White House Team. As normal, not all our homes are open and some are by appointment only. Never a problem to book a viewing on one of these properties should you be interested.

Can I be of assistance? Please feel free to call me direct on 0401 888 444 or email robin.ram@raywhite.com

Sold in 2 Weeks!

Sold in 2 weeks!

Lovely 4x2 in Canning Vale with current tenant till June next year.

An amazing response with multiple buyers and offer accepted after the second home open.

Looking to get your property sold?

Email me at robin.ram@raywhite.com

12/12 Arthur St Cannington

From $379,000

3x2 Villa in Cannington

 Be quick as it's priced to sell! Excellent opportunity right here to secure a street front villa only a short walk from transport and close to train, bus, major roads and shops. Secure gates to complex for parking and home security. 3x2 great for your investment or a low maintenance home. More features include Master bedroom with triple robe Private front courtyard with gate to street Formal lounge room Split system air conditioning Bedroom 2 and 3 with double robes Patio area Store room Great location in Cannington

National Property Market Update

Please see below the update on the 10/9/12 from Ray White's CEO of Growth, Mark McLeod

Buyer sentiment continues to be heavily influenced by the combination of local area market conditions and the overall macroeconomic environment. After rate cuts in May and June, The Reserve Bank (RBA) continued to sit on the sidelines for the third month in a row last week, leaving the official cash rate on hold at 3.5% after its monthly meeting.

An AAP article said despite growing concerns about a slowdown in China as the Eurozone crisis continues to linger and domestic retail sales fall, the RBA is still keen to see the effects of the previous cuts before lowering rates again. According to the article, most economists are now predicting a November cut, while markets are pricing in a further 100 points in cuts before the current rate cycle ends in late 2013. Westpac’s Bill Evans told the Weekend Economist that recent economic data, in particular the June quarter GDP, has been disappointing and does not dilute the case for lower interest rates. Evans expects two further rate cuts in the December quarter, followed by another cut in early 2013.

Meanwhile in the property market, News Limited reported that Darwin was Australia’s best performing capital city over the last three months, with the latest figures from RP Data showing prices there rose by 5.2%. Conversely, Adelaide was the weakest city, with prices sliding by 2.2%. Sydney and Melbourne, although flat in August, recorded growth of 2.4% and 2.5% respectively over the quarter. Brisbane prices grew by 0.6% while Perth grew by just 0.2%. Research director Tim Lawless said the lowest number of property sales since the late 1990’s combined with a flat winter could provide the foundation for a stronger spring. SQM director Louis Christopher said while he agrees market conditions are a little better than this time last year, it doesn’t mean we’re heading into a boom. Christopher believes Australia’s housing market is becoming more segmented, with falls continuing in Melbourne, Hobart, Adelaide and Canberra, prices stabilising in Sydney, Brisbane and Perth, and a boom occurring in Darwin.

National Property Market Update

Please see below the update from Ray White's CEO of Growth Mark McLeod

Buyer sentiment continues to be influenced by the combination of local area market conditions and the overall macroeconomic environment. The media last week was once again full of conflicting information regarding the state of the property market, with some reports suggesting conditions have stabilised while others indicating there is more trouble brewing.

Early in the week, ANZ released a report predicting Australian house prices should rise by around 4-5% per annum over the next two to three years, as long as the global economy avoids calamity and local unemployment doesn’t rise. According to the lender, home sales numbers are currently running at 100,000 per month, significantly lower than the 140,000 recorded pre-GFC and the 120,000 recorded in 2009. The report also notes significant volatility in the market over recent years, with house price falls for the most expensive 20% of Australian suburbs more than double the price falls for the remaining 80% of suburbs.

Conversely, the NAB Australian Residential Property Survey also released last week showed the national outlook has declined, with Australian house prices declining by 2% in the June quarter. According to the 300 real estate professionals surveyed, prices in NSW and Victoria are expected to fall by .4% and .7% respectively over the next two years, while house prices nationally are likely to rise by just 1% during the same period.

An article in the Age featured data from the Real Estate Institute of Victoria (REIV) showing the median price in Melbourne has fallen by 5.3% over the past year to $535,000. A spokesperson said low consumer confidence is the biggest challenge in the residential property market.

A Sydney Morning Herald article said investors are fleeing the share market for the safety of bricks and mortar. Meanwhile, a separate Sun Herald article said three in ten households with a home loan are currently suffering from mortgage stress, according to the latest Australian Bureau of Statistics figures

Number of Listings & Selling Days

Thanks to REIWA online, this information shows some interesting information. We currently have 11 784 homes on the market which is a significant decline from Dec 11. Based on this history and in my current experience, days on market are dropping down with more and more buyers looking to purchase. More competition for homes, less supply means increase pressure on prices.

Good time to buy? I think now would be great as the stats are looking good

Weekly Update National Property Market

Please see below the weekly update from Ray White's CEO of Growth, Mark Mcleod

As always, buyers continue to be influenced by the combination of local area market conditions overlaid by the general economic environment. During the week, the recent boost to consumer confidence created by falling interest rates was dampened by a renewed fear of a second full-blown global financial crisis, with speculation rife over the Greek general election ballots on Sunday.
An AP article said bankers, governments and investors were preparing for Greece to stop using the Euro, with the outcome dependent on which party wins Sunday’s election. In the lead up to the ballots, savers across Europe were making a run on the banks, withdrawing their savings either in fear their money will be devalued or that the banks are on the verge of collapse. Particularly in Spain and Greece, billions of Euros are being taken out of bank accounts, magnifying the financial stress those countries are already under. The article terms the trend a “jog” rather than a “full-bore run”, but suggests that if the mass withdrawals do turn into a flood, it could hasten financial turmoil in Europe which would then potentially spread around the world.
Domestically, AAP reported interest rate cuts and Government handouts are set to boost retail spending at the fastest rate since the GFC. Deloitte Access Economics is forecasting retail sales will grow by three percent in 2012/2013, up from .7% in 2010/2011. Conversely, the Daily Telegraph said the mid-year sales are a fizzer as interest rate cuts have failed to ignite spending. Retailers say they are facing the worst environment in more than 30 years, with many reporting lower sales than this time last year.
Meanwhile in the property market, Westpac boss Gail Kelly told the economic forum in Brisbane last week that Australia is unlikely to ever again see the housing boom that sparked a massive rise in personal wealth over the last decade. Kelly told business leaders that the years of compound growth in property prices are over for good

National Property Market Update

Please see below an update on the National Property Market by Mark McLeod.

Want to know what is happening in your area? Email me for an in-depth analysis of your suburb over the last 12 months. - Complimentary service :)

As always, buyer sentiment continues to be influenced by both the macro-economic environment and localised market conditions. In terms of the general media, last week saw more talk of further house price declines, as well as fears of mass job cuts as administrators were called in to the Hasties Group and its 44 Australian subsidiaries.

A news.com.au report said up to 2000 positions are at risk as 2700 workers were stood down without pay for 28 days pending the sale of the Hasties’ businesses. According to the article, the big four banks are set to take a hit with an expected $250 million in write-downs. The Hasties group are currently estimated to owe more than $650 million to lenders, including $150 million to ANZ.

The Hasties’ losses are likely to impact consumer interest rates further, with Mark Bouris from Yellow Brick Road warning during the week that the days of banks passing on official cash rate cuts in full are over. He says although many variables, including increasing funding costs, are weighing on the bank’s decisions, he believes they get away with “hoarding” the cuts because the big four banks effectively act as an oligopoly with 92% market share.

Meanwhile, a Sydney Morning Herald article said high Australian house prices will challenge credit growth more than a mortgage crisis, according to a Credit Suisse report. Conversely, independent banking expert Martin North says banks are beginning to relax lending ratios, creating a small but significant risk of default. He says the average mortgage is now twice what it was in 2005, calling 25-30% of borrowers “pretty stretched”.  A separate Herald article cited the latest OECD Economic Outlook as saying real estate prices are very high compared to rents and incomes and are under threat from the high Australian dollar along with confidence and jobs. The report suggests further falls in property prices, but predicts the Australian economy will grow at the fastest pace in the developed world.

Locally, consumer confidence continues to be shaky – an article in the Age reported Boston Consulting’s annual global sentiment survey shows Australians are gloomier than they were a year ago and in some ways, in worse psychological shape than consumers in countries where the global financial crisis has wreaked havoc.