Wednesday, March 29, 2006

Is The Property Market Defying Gravity??

It has been an action packed March at Toop&Toop with our head office directly under the flight path of the F18's flying over the Clipsal 500 last week and with our fabulous win at the national awards this month.

In the coming weeks we have Easter and school holidays and from the look of the next month we won't see a blimp in the renewed vigour of real estate activity. In regards to Easter, we are encouraging our team to talk their home sellers into opening their properties during the break. We genuinely believe this is a great opportunity to capitalise on interstate and overseas investors. At the moment we are still scratching our heads as to what is driving this renewed level of activity - Maybe the all time record low vacancy rate of rental properties (just on 1%) holds the key in explaining this renewed interest in property.

So, is the property market defying gravity??

Many of our landlords have sold their rental properties and in doing so have helped create a shortage of available property for rent. For those investors who own residential property, recent reports out of Sydney indicate that rents across the nation have not only firmed up, but the trend is now upwards. If this continues it is entirely possible that it could kick start another round of price hikes in the real estate market. Should this occur it would be totally contrary to the standard real estate cycles experienced over the last 100 years. It should also be noted that interest rates are at an all time low and local competition in whatever field you choose to name is at an all time high. Perhaps all of the rules have changed because real estate is one of the essential assets that is home grown and has a constant local demand ... After all, shelter is a primary need for all of us.

So for all of the doubting Toms and for those who are heavily involved in property, at the moment we can say it is a big thumbs up.

For all of the investors ... go and buy some more property!!

Wednesday, March 22, 2006

The Week In Review With Australian Property Monitors

So, How is the Australian Property Market Tracking??? Let's see what the national market monitors Australian Property Monitors have to say...

"With the Commonwealth Games now in progress, Melbourne auctions this week are down on levels seen in previous weeks. Auction clearance rates have been holding well however. Over the past week, 58% of all properties in Melbourne sold prior to or under the hammer.

Not a bad result given all eyes are focused on sporting events. This Saturday 369 properties are listed for auction for the games city, which is better than what we were initially expecting in terms of volume.

Perth continues to rocket along, with clearance rates hitting 63% over the week. The word is the brokers collectively had the best month on record. None of our indicators are recording any sign of a slowdown.

However, with a median price now more than Melbourne’s, sooner or later Perth’s party will have to stop. I suspect that won’t happen until we see a downturn in the global commodities market – something which might not occur for a while yet.

Adelaide recorded a 74% clearance rate and an auction volume of 41 this week. 60 properties were auctioned last week and the clearance rate was 49%. This week of last year the clearance rate was 50%. "

So, to all of our home sellers, the market is still strong with a fantastic auction clearance rate. If you are thinking of selling, please contact us on 8362 8888 for a confidential chat. To our home buyers, there is plenty of activity in the market so happy house hunting!! 1800 817 616 Australian Property Monitors

Wednesday, March 08, 2006

Adelaide's Party Month

March certainly is a non-stop party this year in Adelaide with the coming together of the Festival, the Fringe, the Clipsal 500 and the Adelaide Cup along with all of the normal Adelaide social calendar events, such as the David Jones Fashion Launch ... What an exhausting month! Not to mention the election...

So often we are asked how this impacts on selling and renting homes? At the end of the day the reality is that people are always buying and selling homes and rentals, if anything, are stimulated by all of this activity. By far the most significant consideration when trying to determine when to sell relates to the economy and community confidence in the economy. It appears that in the foreseeable future we may see stability in the interest rates - this is significant.

Having spent considerable time discussing real estate markets across the world it appears that these dynamics exist everywhere. Property prices are directly linked to confidence and mortgages drive prices. If people are prepared to borrow they create the demand and demand underpins how quickly and for what price properties will sell over and above the 'value for money' decisions.

So in summary, if you are buying, selling or renting it is hard to pick a 'normal' period so the best advice is to act as soon as you are ready. Enjoy Adelaide for its magic weather, incredible events and affordable housing - The Lucky State!

Wednesday, March 01, 2006

$2.9 Million at Auction...South Australian Record / $5.3 Million Settled Sale..All Time SA Record

Toop&Toop have been very proud of our achievements over the past few weeks setting new records everywhere in a big start to the year. As recorded last week in the Advertiser property round up, new records are falling everywhere and from our perspective we are pleased to be the ones creating them.

The auction sale of Cameron Valley at Margaret Street, Stirling was while I was away and Mike Rogers had the honour of completely re-writing the records in my absence (don't you hate that!!). I am very proud but envious of Mike for having achieved this new benchmark. The previous highest sale was almost $1 million less at auction last year and Toop&Toop held the record the previous year for the sale of Wootoona Tce at just over $2 million.

With regards to the settled sale, Adelaide has very much come of age and this is just the beginning as we start to see more and more quality properties and expectations shifting substantially from our clients.

These achievements also work well in the smaller end of the market, as it shows that Toop&Toop's skills and expertise in marketing really do work for everyone involved in real estate.

So to all of our home sellers, I would like to wish you all the best for your sale and we look forward to achieving new records in the not too distant future