Like to keep an eye on what the market is doing? The signs are there that things are improving.
Stats from reiwa.com.au show the following for the 3 months to May
Vacancy Rate is 1.7% with median rent at $420 per week
There are 7897 homes currently online for sale
There are 2250 units online for sale
This confirms what we are seeing at home opens. More buyers are out, more investors are returning to the market and that rent prices are being pushed up due to short supply. We had an open for inspection in Thornlie on the weekend with 30 groups through and 3 offers and sold at a price the owner was more than happy with that day.
Looking to buy? Get in now before the potential of more interest rates cuts and more competition in the market.
Tuesday, 19 June 2012
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
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
Wednesday, 30 May 2012
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 :)
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.
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.
Wednesday, 23 May 2012
Weekly National Market Update
Please see below the update from Ray White's CEO of Growth, Mark McLeod
As always, buyer sentiment is heavily influenced by the dual factors of local market conditions and the overall macro-economic environment. Global woes continued to dominate the media last week, as fears mount that Greece will leave the Eurozone and default on its debt.
An article in the Sydney Morning Herald said the Commonwealth Bank has been preparing for a possible Greek exit from the Eurozone for some time. Chief Executive Ian Narey said the current volatility and strains on global money markets will be felt throughout the Australian economy, hurting confidence and pushing up bank funding costs. AAP reported that global equity markets plummeted during the week as the Australian dollar fell below parity, marking the first time the dollar has been below 100 US cents since December 2011.
Domestically, a Property Observer article said minutes released last week from the May 1 Reserve Bank (RBA) board meeting show that weak housing, construction and mortgage industries were the factors behind the recent decision to cut the official cash rate by .50%. According to the article, the minutes also show that the latest data indicates housing prices have continued to decline, albeit with tentative signs that the rate of decline may be slowing. Further, a Herald Sun article interpreted the RBA’s minutes as saying the board slashed the official cash rate partly as a response to the higher home loan interest rates being charged by the commercial banks, as well as being influenced by “fragile” conditions in international economies.
Meanwhile a Sydney Morning Herald article quoted APM’s Dr Andrew Wilson as saying prices in Sydney’s prestige market are back to 2007 levels, with the wider Sydney market still below where it was a year ago. The article suggests the current over-supply issue has been worsened by a demographic “blimp” of baby-boomers wanting to downsize.
Friday, 18 May 2012
New Website for Canning Vale Area.
http://canningvaleliving.wordpress.com/
I have created a new website for both residents and local buyers wanting to know more about this lovely pocket of Perth.
Canning Vale Living is completely for this purpose. Understand what work is underway, what is currently happening and some reviews or feedback on local places that you may like.
I have only recently started this site so keep an eye out for more information. Buyers will be able to use this in future to research the lifestyle, schools, shops and transport this area offers.
I look forward to providing more information on both this site and the other one to give you a complete overview of this area that I am both lucky enough to live and work in.
I have created a new website for both residents and local buyers wanting to know more about this lovely pocket of Perth.
Canning Vale Living is completely for this purpose. Understand what work is underway, what is currently happening and some reviews or feedback on local places that you may like.
I have only recently started this site so keep an eye out for more information. Buyers will be able to use this in future to research the lifestyle, schools, shops and transport this area offers.
I look forward to providing more information on both this site and the other one to give you a complete overview of this area that I am both lucky enough to live and work in.
Silent Homes For Sale
Looking to buy a home in Canning Vale, Southern River, Thornlie, Huntingdale, Harrisdale or Piara Waters?
As a local agent, we meet many sellers who are looking to move or relocate but don't want to place their home on the market as yet. This is where getting to know your local agent becomes an advantage. We currently have a few homes that can be sold but the owner is not quite ready for photos and home opens. Why not tell your agent exactly what you are looking for so we can keep an eye out for you.
I'm currently working with two unique and lovely homes in Canning Vale that are for sale but not online and have no signs. This may be the perfect home for you. Don't be afraid to tell your agent your requirements and to keep an eye out for you. This may secure you a home without having to compete against other buyers and give the owner a chance to sell without the full marketing campaign. A potential win win for both you and the owner.
As a local agent, we meet many sellers who are looking to move or relocate but don't want to place their home on the market as yet. This is where getting to know your local agent becomes an advantage. We currently have a few homes that can be sold but the owner is not quite ready for photos and home opens. Why not tell your agent exactly what you are looking for so we can keep an eye out for you.
I'm currently working with two unique and lovely homes in Canning Vale that are for sale but not online and have no signs. This may be the perfect home for you. Don't be afraid to tell your agent your requirements and to keep an eye out for you. This may secure you a home without having to compete against other buyers and give the owner a chance to sell without the full marketing campaign. A potential win win for both you and the owner.
12 Ambleside Way, Canning Vale
http://www.domain.com.au/Property/For-Sale/House/WA/Canning-Vale/?adid=2009709543
PRIVATE VIEWINGS MY PLEASURE
Absolutely stunning property in Ranford Estate. This lovely double storey home is perfect for the busy couple or family wanting to make the most of the lifestyle this property offers. With all the creatures comforts, space and practical layout this home offers, you know you wont regret the decision.
Featuring all the bedrooms upstairs, the downstairs remains separate for entertaining family and friends. Cook up a massive feast in your downstairs kitchen or entertain on your alfresco overlooking rear pool. More features of this stunning home include
5 bedrooms
2 bathroom ( bath tub to main and spa to ensuite )
Upstairs balcony overlooking front of property
Theatre room
Activity area or study
Massive kitchen with island bench and quality finish
Below ground pool
Rear alfresco with wood decking
Double garage
Air conditioning
Upstairs activity area/bar for the grown ups
Porcelain tiled living areas
For further information or to book your private viewing, please phone Robin Ram 0401 888 444
Featuring all the bedrooms upstairs, the downstairs remains separate for entertaining family and friends. Cook up a massive feast in your downstairs kitchen or entertain on your alfresco overlooking rear pool. More features of this stunning home include
5 bedrooms
2 bathroom ( bath tub to main and spa to ensuite )
Upstairs balcony overlooking front of property
Theatre room
Activity area or study
Massive kitchen with island bench and quality finish
Below ground pool
Rear alfresco with wood decking
Double garage
Air conditioning
Upstairs activity area/bar for the grown ups
Porcelain tiled living areas
For further information or to book your private viewing, please phone Robin Ram 0401 888 444
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