This is a common question asked by vendors if their property has remained on the market for a period of time and is best answered by visualizing a pendulum -just as a pendulum swings from one end to the other with periods in between, so does the property market. At one end we have times where buyers who are ready to purchase outstrip the number of homes coming on to the market, generally followed by a more neutral period where the ratio becomes more even and finally to where the situation reverses and sellers find themselves competing for the attention of a reduced number of buyers. Common terms you might hear for these occasions are “buyers” and “sellers” markets.

In a “buyers” market, which best represents the current local conditions, it is vital that your property stands out from its competition through initiatives connected to pricing, presentation and a myriad of other factors that your agent will happily discuss with you. Any potential purchaser will first need to become interested enough to want to arrange an inspection and from there to be able to make an emotional connection with your home, such as visualizing themselves living there. Many buyers will be able to determine how well they like or feel about a property within a very short time, so this opportunity must be maximized through listening to experienced agency advice.

No two homes are exactly the same – so don’t allow yours to become part of the crowd.

Everyone wants to know will property prices go up, stay the same or go down in 2010. Everyone thinks they are an expert but importantly we need to remember that over the long term (no, that’s not 3 years but more like 10 years) both property and shares will have a very similar rate of return. Predicting property prices in the future is not easy and not an exact science due to the large number of influencing factors such as interest rates, unemployment, funding and new infrastructure projects just to name a few.

So rather than explain whether property prices will go up or down, I will tell you what the driving forces are.

Firstly it is supply and demand. If you have more people wanting to live an an area than properties for sale, prices and rents will rise over time.

Secondly it’s confidence. People will not commit to mortgages if they are worried about their jobs or ability to pay back the banks.

Thirdly it’s interest rates. If rates are low you can afford to borrow. If rates are higher then it makes it harder to borrow what you want and the ability to pay back the loan.

And lastly it investors. Investors hold approx 25% of properties Australia wide so when they have confidence that the time is right to re – enter the market as it creates competition and pushes up prices.

So where to from here? While I don’t have a crystal ball reviewing the forces above indicate that the market has started to realign. Finally on behalf of myself and the team at Merrifield Real Estate, we would like to wish our readers a very Merry Christmas and a safe & successful start to 2010.

Things are going well Real Estate wise in our region.

Looking back over 2009 sales, we did really well with turnover of stock, up considerably on 2008 numbers

There is continuing evidence that confidence is returning and even the increase in interest rates thus far, has not dampened this returning confidence.  I believe that the rates are currently still low by what is considered normal and buyers are allowing for the increase.

Having said that, buyers are doubly keen to buy the property at the very best price possible so that they can withstand the impact of rate increases.

Albany has embraced 2010 with a flurry of new listings, enquiries numbers are certainly up and the beautiful weather has brought visitors from everywhere.

The increase in numbers of properties for sale will continue to keep the market in favor of the buyers.  Yes it is still a buyers market. 

Serious sellers, when deciding their “listing price” need to give serious consideration to their motivation, how keen they are to sell and how quick do they want to sell.  Don’t be frightened by the opposition but if you are serious about selling it is wise to be aware of them so that the price on your property is not making the oppositions look like a bargain and therefore you are in effect just helping to sell their property over yours.

Activity is also improving in the higher priced property market.  As a result of the market improvement in 2009 fuelled by buyer activity at the affordable end of the line we appear to be stepping up towards the more expensive market. This factor has been more evident over the past couple of weeks with the influx of visitors.

While a lot of the visitors are just “looking & thinking” a number of them do actually buy properties (as sales persons our dilemma is trying to pick the genuine from the “time wasters” and believe me this is not always easy)

But, no matter, for Real Estate, this is always one of our more active periods – more enquiries, more inspections and more turnovers (properties sold)

The indicators, the “gurus, and those who know much more than me are predicting that Real Estate is on the way up.  Not necessarily running, but I do agree, we have certainly turned the corner and moving in the right direction which is a good thing for all but be aware that in order to stay a good thing it needs to stay “fair” to buyer and seller. Greed and ruin usually go hand in hand.

Just as the seasons turn so does the property market and right now we are seeing that activity in Albany is hotting up over summer.

There are many clients who have been sprucing up their homes ready for sale, potential purchasers are out there right now looking at what their dollar will buy and there is no shortage of available properties just waiting for a brand new owner.
So how do you make the most of this opportunity? If you are a vendor you need to be taking care of those little things around the home to improve its appearance (as a buyer will notice), ensure that your home is accurately priced within the local market and be thinking in advance about if you were asked to negotiate. Buyers should ideally know what price range they can purchase within (including finance pre-approval), inspecting comparable homes that may suit their needs and be on the lookout for those little “extras” that could indicate particular properties as being the better buy.

We all have different reasons for buying or selling as we do with wants and needs we are hoping to achieve. Through entrusting your needs to a reputable agent you are maximizing your chances of a faster sale at closer to your asking price or making sure you do not miss out on that property you wanted to purchase. That way you will be able to enjoy the rest of your summer “sunny side up”.

What an important question to answer in the lives of many Australians and one we usually ask more than once as we find ourselves relocating to accommodate a family, a change in job, to prepare for retirement or one of the many other reasons that prompt us to part with one of our greatest assets.
A lot of attention has been drawn to the first homeowner market in more recent times but now is also a great time for people moving to their second (or subsequent) home. “Why?” I hear you asking. “Prices are generally lower now than they were a couple years ago.”
This is because the sale price is only one aspect to consider when moving home. The price you buy at is equally as important because that is what dictates the amount of stamp duty you are required to pay, potentially saving you thousands of dollars.  A market that has seen growth and is now in respite also generally means lower fees calculated against sale prices and if you both buy and sell in similar market conditions you better retain your percentage of equity ready for when property prices rise again. This scenario occurs because most sellers are also in turn buyers.
If you have been considering a new home, contact a reliable agent who can meet with you to both present your options and hear your concerns, thus allowing you to make a fully informed decision.

Selling your home or leasing your investment property will be one of the most important decisions you will ever make and it’s so important that you get the right sales representative/property manager and agency.

There are a number of factors that you should look at before making a selection. Skills such as experience in the industry, negociation skills, agency marketing program, agency profile/history, results and sales representative’s/property managers attitude/work ethic just to name a few.

Too many people select agents/property managers off the highest appraisal price, lowest selling fee/rate or fall for gimmic marketing such as giving away cars or low management fees. The old saying “You pay peanuts, you get monkeys” applies here. Ask yourself why are they marketing giveaways to attract business? Good agents don’t need giveaways as they work on the above factors and get referrals from satisfied customers. Our job is to sell/rent houses and get vendors/landlords the best possible price. This is determined by what the market is telling us not necessarly what the vendor thinks the property is worth or by high appraisal prices.

Referral is the best way of selecting an agent, as a friend or family member would of already used them. I would like to think that a friend or family member isn’t going to refer someone who did an average job. So if your thinking of selling or leasing, take the time to make the right decision as a good agent will save you thousands of dollars.

Ask someone you trust who has just completed a real estate transaction and ask them for an honest opinion. I am in no doubt the same agents name will be mentioned.

 The outlook is good; the indicators are good and pointing in the right direction.

When the Commonwealth Bank of Australia moves ahead of the Reserve Bank and announces that it will increase fixed-lending rates to 6.19 %, while its 2 year fixed rate goes up to 6.84% it’s a sign that things are on the move.  And now in support of things improving the Reserve bank has officially increased its rate by .25%.

Super low interest rates are nice while they last but we should never get used to them. Nor should we want to; they’re unnatural and indicative of a sick economy, which can be worse for us than a couple of interest rate hikes.

There are many reasons attributed to our growth as a city, region and state and make no mistake about it, the mining industry has, and will continue, to have a strong influence on our upward values

First Home buyers will now make way for investors.  Investor enquiry is picking up with most of the financial lending institutions supporting the real estate industries claims that enquiry is defiantly on the increase.  They are coming back, they are keen to buy BUT they are quite ruthless about wanting “good value for money”. They have no hesitation is walking away if they can’t get what they want for a price they believe is good.

Serious sellers need to price their properties well and present them well.  A property really well presented stands a very good chance of a good sale.  This is not the time to for sellers to take the attitude “they can take it as it is – they just have to look past the rubbish”.

Aspects considered most important are:

Price
Locality – convenience to amenities and transport
Number and/or size of rooms
Features- such as driveway access, garage, backyard, patio
Aesthetic appeal
Locality – prestige
Age and presentation of property
Green/environmental aspects

If you need advice, assistance or an opinion give your real estate representative a call and they will set you straight.

Rents will go Up

The Rental Markets around the state have shown large increases in rents over the last 3 years; however over the last quarter rental rates have peaked and in some cases fallen. 

Demand eased as many renters took advantage of the improvement in housing affordability, the first home buyer grant and record levels of population growth. 

However, any reprieve for renters is likely to be short-lived. Rental rates will most likely start to increase again.  Historically, Albany always sees demand to rentals properties increase as we move into summer and subsequently rents go up.

It is amazing how life’s experiences define our opinions about certain topics. Recently I was away on the east coast and had some time to speak with various sales agents in different towns throughout Queensland. The common feedback was that confidence had come back into the market place and that property was again selling at good volumes and at market prices. This was being pushed by resources and infustructure such coal,sugar, the rail network and new ports.

This got me thinking obviously about Albany and what we have in place with regards to infustructure and resources and what the future holds. While I work in the field of real estate doesn’t mean I want to see high rise buildings everywhere,I do want to see progress and with that comes development. Like it or not, positive progress forward creates jobs, attracts tourism and benefits business which in turn supports families by paying wages and puts food on the table.

My point being in these parts of Queensland where this is happening they have a positive mindset, a vision and a plan to make things happen. We have all the ingredients here to make this happen but is it you the public who determine who the decision makers are and what we want for our town. Maybe experiencing different things will enable you to shed new light onto your opinion and that Albany can be a place that benefits everyone.

I write this coloum after looking through the paper at the amount of home opens this weekend. A lot of people are convinced they are the best tool in selling a home while others have different theories however my point today will no doubt be a discussion topic over dinner. Personal I am for showing qualified buyers through a well priced property rather than spending time showing off a vendors property to neighbours and unqualified buyers.

Yes you might get plenty of people through the home but are they genuine buyers or pruely just timewasters. I am sure the vendor that has spend hours getting the home open ready on a Saturday only to be told after the home that there were a few people through who were mainly neighbours and the odd person that is doing the rounds knows that feeling of being let down.

The other added issue with home opens I see is security. How can an agent be in two places at once if there are more than 2 clients in the home. Most vendors have valuable items but ask yourself this, will the insurance company pay if something goes missing?

 With technology increasing and the internet a powerful tool in selling real estate where buyers can find everything on the click of a mouse, I ask you are home opens the best method to sell your home?

My personal opinion is that why let unqualified buyers into your home which is what your doing. Because an agent isn’t doing home opens all day and every weekend doesn’t mean that they are not working in your best interest. It means that they are making sure that inspections that happen are to clients that can actually afford to purchase your home and that are qualified.

Overall it really comes down to the indiviual and what beliefs they have been bought up with regarding this. Houses have sold from home opens and some agents will tell you that you need your home open to attract buyers but with the internet and other marketing tools will there be a future for home opens. Personally I think the writing is on the wall.

Thousands of homeowners are no longer in mortgage stress.  It has been publicized that over 70 per cent of Australians are repaying home loans much easier than in 2008..

The Housing Industry Association supports this fact confirming 135,000 mortgaged households have seen their stress levels reduce since December 2008.

We now have the lowest interest rate since the early 1960’s.

The recent interest rate cuts are almost equivalent to someone on the average wage receiving a 15% lift in income.

The increased growth in rental yield, low vacancy rates and the lowest interest rates for years is what is stimulating investment in the residential property market and for the first home buyers the added stimulation of the $14,000/$21,000 grant.

All market indicators are pointing to this being a good time to buy property.

Encouraging Signs

Consumer Sentiment Index recorded a fall of only 0.2% over the past month which is well below expectation.

The results are surprisingly good considering the ongoing decline in global economic conditions, rising unemployment, falling share prices and a contraction in the Australian economy.  The very small drop in the March index is possibly a suggestion that consumer confidence may be finding a floor.

Housing finance data shows that home buyers are increasing in numbers with the number of housing loans considerably up in comparison to the last quarter in 2008.  The rise in the number of housing finance commitments is supporting the evidence that Australian property prices will avoid a US/UK like crash.  The fact that since January the market turnover in properties under the $400,000 sector has been very good is possibly a suggestion the bottom of the market has found its floor.  Generally when the bottom of the market starts to move there is little reason for prices to drop further.

Is It TIME

Timing is a critical factor it can make or break your property investment.

If you buy when the rental market is oversupplied you may have trouble finding a tenant and or getting a good return.

If interest rates are through the roof your holding costs and mortgage repayments will be high

If you purchase a property at the height of a boom, it takes you longer to build equity.

None of these scenarios reflect today’s market conditions, so despite the fact that talk of a recession is on most people’s lips, could now be the right time to buy?

What about job security?

Its an unfortunate reality that many may lose their jobs in this economic downturn, but in truth, even if unemployment rate doubles to 10% in the coming year that still leaves 90% in the workforce.

Food for thought!!!