Wednesday, April 21, 2010

Two Speed Property Market?

‘Two Speed Economy’ have you heard the term? What about a ‘Two Speed Property Market’?

It seems we are experiencing this right now; a combination of sensational results mixed up with some underperforming ones.

For those who follow the market commentary there are conflicting stories coming through daily. Our take on things will always be ahead of reporting, given it takes up to 6 months for figures to roll out as statistics. We aim to report based on the past 7 days activity and our observations. Our InsideStory blog is generating interesting commentary that contradicts ours, which we’ve published for all to read so take a look. Predictions of a meltdown in the property market with talk of the ‘Inevitable Bubble Burst’ remain common, with scary and negative predictions from some bloggers. We do not agree. Stability has a long history in our local market.

So what is the InsideStory from the front lines at Toop&Toop? More of the same as reported over 2009…demand has been very strong for carefully priced property, while poorly priced property is not selling. This is consistent around South Australia, holding true for commercial and residential properties. We reported last week that Toop&Toop has recorded it’s biggest volume of March sales in our 25 year history…we are not just spinning up the market with hype and propaganda, the sales are there and are real.

We have taken on properties that have failed to sell with other agents and there is a pattern. ‘No result’ generally fits into one, (or a combination), of just four categories:

• lack of marketing clout of the agency through databases, networks & online/traditional marketing

• energy & passion of the salesperson,

• lack of presentation/marketing of property

• price

Selling a property for the best price, in any market, isn’t rocket science. But a lack of agency ‘rocket fuel’ in technology & networks to reach the maximum number of buyers, or the energy of a salesperson to communicate & negotiate may result in ‘no result’.

On the one hand there are easy sales out there, but they are getting fewer and further apart, while on the other there are some really tough sales. There are easy market segments and tough market segments. Some sales are going absolutely berserk, others seem as if they are bargains. We definitely have a two speed property market emerging!

As the Reserve Bank continue to lift interest rates we will see the impact of the monetary handbrake as it is applied bluntly, changing the dynamics of our market. We’ll keep you up to speed on how your property is tracking each month through the Toop Property Index (TPI) on Toop.TV.

Diary Date Showdown 1: 'Property vs Shares'
May 5th @ 1pm Book it in your diary, full details next week.

The Abbey...thanks to those who have made contact in regards to working from our stunning new Hyde Park office in The Abbey…keep the communication happening, we need the right people in all areas of the business so this is the perfect time to look at working with our team. Call Andries or Vanita on 8362 8888 if you are interested in a career move.

Anthony Toop, Managing Director.

© Toop Real Estate Group

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