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

Give me a home among the gum trees......

5 Acres of Land ( 20,000sqm ) only 15 minutes from Canning Vale - 4x2 home

http://rwht.com.au/wa/oakford/809612/
Every now and then you get an opportunity to secure a new lifestyle and quality of life that most people dream of. Short drive to all major roads, this secluded home offers quiet enjoyment, nature, fresh air and the escape from the busy life style of Perth. The owners have taken great pride in this property and are sad to see it go. Let the dogs have room to run, kids room to play a game of footy or entertain without having to worry about noise. Parking not a problem with long drive way and so much grass area that the owner will even include their ride on mower in the sale. Work for home? Addicted to fitness or have some kids/guests that you want close by but far enough away to give you peace? This lovely property comes with a separate enclosed area that is currently being used as a gym with a guest bedroom next door. Ideal for an office from home, teenage retreat or even just storage. Relax by the spa in the fully enclosed gazebo. Enjoy it all rear round. Patio to the rear with local magpies stopping by on a regular basis for some extra food. Doesn't this place sound too good to be true? Well it's here and ready for you to inspect.
Features include 4 bedrooms 2 bathrooms
Ducted air con to main home with split system
Split system in teenage retreat/guest room
Fully fenced property providing security and peace of mind
Gate to entrance
Just over 5 acres of land or over 20,000sqm
Large water tanks
Roller shutter and security screens
Biomax water treatment
For an inspection or questions on this lovely home, please contact Exclusive Agent Robin Ram 0401888444

Perth Rental & Vacancy Rate

The current vacancy rate sits for last quarter at 1.7%. The trend continues to lower with population increase to WA, less homes available therefore increasing weekly rents. This is causing many home renters to considering buying due to price and difficulty in obtaining a rental property. Investors are returning to the market as stock markets show some uncertainty around the world.
Great to see this as a graph above and being able to compare to previous conditions over the last few years.

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

Online Virtual Tour

With the Internet becoming more and more popular and the major source of all our enquires, why not think about an online tour to showcase your home? This new trend is proving popular around the world and its starting to make its way into Perth with a few agents coming on board.

As an agent, I have done my first online tour and have recorded one more for a rural property in Oakford.
Check it out and see what you think?

http://www.beproductionsonline.com.au/videos/34gatewayvideo.html

The cost has reduced significantly and I feel it would be worth the consideration. You don't have to have a million dollar home as most of our sales coming from regular suburban houses which is what most people want to buy.

Something new and exciting we can work towards, especially if you don't want home opens.

Residential Density R Codes

Looking to buy or sell a property and need some clarification as to what potential your block may have?

Please see below a link that may be of use on Density Guides and what you may be able to do with your property.

An example of this as follows  :
 R 17.5 means that you need an 571sqm per block you develop off your site. If you have this density and only 1000sqm, unfortunately, you will not be able to develop. Looking at building on the rear of your property?  You will need slightly more room.

Please see the link below for all the information direct from WA Planning

http://www.planning.wa.gov.au/dop_pub_pdf/R_CodesSPP_3_1_2.pdf

If you would like me to have a look at your property and explain the potential you may have, please feel free to give me a call or email me at robin.ram@raywhite.com