June Quarter Update and News
What lies ahead
I can’t believe that we are already in August. How time flies when your
having fun! And it has been fun.
Starting an Advocacy business along with Finance and Consulting has been
a very rewarding experience, with many happy clients and some great
results.
In addition, I have been saying for many months that I will not
participate in this so called recession. Given the fact that many forward
thinking people have made more money when everyone else was pulling their
horns in has made me even more determined to prove that this strategy is a
good one.
With this in mind I have decided to invest in real estate and put my money
where my mouth is. As a consequence I have commenced It’s a Breeze Property
Trust No.1 – getting back to developing real estate. I feel that given 33
years of real estate experience and a great love for property, I will be
able to take my own advice and do what I have been telling many others to
do and making many others successful.
Also the main thrust of It’s a Breeze – Real Estate Solutions has been
Vendor Advocacy and we are currently looking after many properties that are
in many different suburbs and many different price ranges.
We have just completed the sale of a new double storey house on a smart
block in Warranwood that sold for what would have to be a record price for
the area. The good news is that we have another five brand new executive
style houses in a beautiful treed environment in a quiet court with huge
stamp duty savings. For more information on these homes please send me an
email and I will post you a brochure.
As recent results have shown real estate prices have now steadied and
increased so I expect that we still have a good selling time ahead. The
only unknowns are interest rates, unemployment and the usual rush of
property onto the market in Spring.
I say it every year to prospective vendors; do not wait till Spring to
sell. Why do I say this? Because it is better to sell when there is less
competition. I will await Spring with interest and keep you posted on any
changes and developments in the real estate market.
If you have any particular query, please feel free to email me at
bertram@bertramdaniel.com and I will be more than happy to give you my
thoughts.
Real Estate Update
June Quarter Results
The REIV June quarter medians have revealed that the metropolitan median
price of a house has increased 9 per cent from $405,500 to $441,875, just
short of the 2008 peak of $450,000. The unit and apartment market has
recorded an almost identical increase as houses with the median price
increasing by 8.3 per cent over the quarter from $360,000 to $390,000. The
improvement can be attributed to low interest rates, confidence in the
market, continuing population increases and the financial assistance to
first home buyers.
These factors have contributed to the July 2009 REIV auction clearance
rate reaching 85 per cent. The REIV auction clearance rate has now been at
80 per cent and above for the last four months.
The ABS House Price Index released today confirms the price movements
witnessed in the REIV June Quarter median prices. The house price index
for the weighted average of the eight capital cities increased by 4.2 per
cent in the June quarter 2009.
All capital city indexes rose over the quarter with the largest increases
in Melbourne (+5.2%), Sydney (+4.9%), Canberra (+3.6%) and Adelaide
(+3.4%). Over the year to the June quarter, indexes in all capital cities
fell, except for Darwin (+11.0%), Adelaide (+2.7%) and Hobart (+0.1%).
Building approvals showed some promise in June. The number of total
dwelling units approved in Victoria increased by 17.4 per cent in
seasonally adjusted terms for the month of June 2009, following a revised
decrease of 7.8 per cent in previous month. The value of total dwellings
approved in Victoria increased by 59.7 per cent to $2.03 billion dollars.
In trend terms, the number of total units approved in Victoria increased by
0.2 per cent for the month while the value of total dwelling units approved
increased by 1.3 per cent for the month.
Real Estate News
Under-Quoting
The vexed subject of under quoting is again in the news, with some
surprise visits to some agents offices by Consumer Affairs officers.
As I visit properties for sale as a Buyers Advocate I am more than
convinced that the practice of under-quoting is rife. I have in the last
month visited properties that were quoted at around the $800,000 that sold
for over a million dollars. These sale prices were 25% over the quote
price.
You can’t tell me that the agents handling these properties are so inept
at pricing that they miscalculated the end result this badly! They clearly
believe that quoting a property at a low price will generate plenty of
interest and excitement, which translates to a ‘HOT’ auction and a good
selling price. Good for the vendors – not so good for the buyers. Sadly
these practices will continue until the law makes an example of someone.
I recall a time when an auction did not have a price advertised and it was
left to the buyers to do their own investigations and make their own
judgements. Perhaps this is the answer!
