Weekly Property Pulse Professional Edition

Posted on 2010-02-21

 

The strong level of pre-listing activity across the real estate market has continued again during the most recent week with the Market Activity Index eclipsing its previous record high during the previous week. The level of pre-listing activity indicates that vendors are extremely confident about the health of the real estate market and is likely to result in a greater number of new listings nationally during the coming weeks. Industry Market Wrap The Reserve Bank of Australia released the minutes of its February 2010 Board Meeting this week, providing an insight into the rationale behind leaving the cash rate unchanged earlier this month. The minutes of the meeting highlighted the significant amount of positive economic data received during the preceding months. Given that there had been three consecutive cash rate increases in the late part of 2009, monetary conditions were deemed to no longer be “exceptionally accommodative” although it was determined that interest rates were still “somewhat below average.” The Board did not regard that the outlook required an increase at every meeting, and the removal of government stimulus afforded the Board the flexibility to wait for more information on how the Australian economy responds to the three successive interest rate rises at the end of 2010. As a result there was no change to the cash rate however, should the positive economic news continue we would expect interest rates to increase in the not too distant future. Advertised Stock on The Market Pre-listing activity continued to ramp up (as it has been since mid January) and as a result new listings to the market have increased during each of the last four weeks, a trend which we expect to continue given the high level of pre-listing activity. New listings are currently greater in each state and territory than they were at the same time last year with the Northern Territory the only exception. Nationally, new listings are up 37% on the levels from the same time last year. Despite the fact that new listings are recording strong week-on-week growth total listings are 2.5% lower than at the same time last year. This result indicates that there is a strong level of sales activity with properties being advertised for sale being absorbed at a very rapid pace. Want to know what is happening in your local patch? Make sure you have subscribed to rpdata's On the Market® service. Click here or phone 1300 734 318 for a free 2 week trial. Latest National Auction Clearance Rates Auction markets are continuing to see activity levels grow with more than 1,000 capital city auctions held last week, The weighted clearance rate across the combined markets jumped from 59% to almost 67%. The nation’s two largest auction markets each recorded healthy clearance rates of 75% in Melbourne and 70% in Sydney with both recording an increase in clearance rates compared to the previous week’s results. Despite increasing volumes and clearance rates, both remain below levels recorded during late 2009. Want to know the auction results for your local area? Log into rpdata.com and go the Auction Results panel on the top right corner of the home page. Number of properties advertised for rent Data detailing the number of properties advertised for rent during the last month shows that the number of new and total rental listings remain well above levels from one month ago. The facts about first home buyers First home buyers were an extremely important element in the property market recovery during 2009. This week we look at exactly what impact first home buyers had on the market in 2009 and how their gradual slowdown in demand may affect the market in 2010. During 2009, 191,000 first home buyers took the opportunity to become home owners across Australia. It’s no real surprise that first home buyers were so active during 2009 given that the Government was offering the First Home Owners Grant Boost, interest rates were at almost 50 year lows, some State Government’s were offering additional incentives such as low or no stamp duty on more affordable property purchases and properties had become more affordable during 2008 thanks to a fall in values. The volume of first home buyers during 2009 represented the highest annual volume of buyers on record and saw a 55% increase on first home buyer activity compared to the previous year. Read the full article... Special AREC10 Ticket Offer to RP Data Members Save $340* with RP Data’s exclusive client AREC10 ticket offer As a valued RP Data client you can attend AREC10 at the group rate for an individual ticket. This event usually sells out so don’t delay! 2010 is the year to invest in YOU. Attend THE real estate professional development event of the year and pick up just one new idea that could change your business life forever. You are guaranteed to walk away with fresh ideas to energise your business as we move into the new decade. Sydney – Sunday 16 to Monday 17 May (optional Leadership Day Tuesday 18 May) Featuring Bob Geldof, Edward de Bono, Erik Wahl, Andrew Winter, Matthew Ferrara, Rick DeLuca, James Tostevin, Darren Saunderson, Jodie McCarthy, Aaron Shiner, John Percudani, Ewan Morton, John McGrath and many more exciting presenters. For full program information visit www.tret.com.au/arec * Applies to bookings made using the RP Data Booking Form Blog: Where to from here for interest rates? The Reserve Bank Board minutes that relate to their meeting in the first week of February make an interesting read if you like to keep up to date on the economic state of play. The minutes provide a relatively easy to digest synopsis of the factors that are deliberated by the Reserve Bank Board as they decided whether official interest rates should move up, down or sideways. Of particular interest is how the Reserve board views the housing market. The Reserve is paying more attention to the private property index providers (including the RP Data – Rismark indices) than the ABS data these days, quoting gains in the residential market of between 10 and 12 percent over the last year (the RP Data – Rismark Hedonic Home Value Indices were reporting a gain of 11.1 percent across the nation’s capital cities). Read the full article at blog.rpdata.com... Commercial: Surrey Hills sale An office suite in Surrey Hills, Victoria, has been sold by agents of Gorman Kelly with a lease already in place. Suite 5 at 400 Canterbury Road, Surrey Hills, is one of 11 suites in the Wolfstep Projects-developed building. Gorman Kelly agent, Sandro Peluso, marketed the property, which achieved a final sale price of $1.26 million. The lease to Wealth Management Systems at a rate of $87,900 for eight years with an eight-year option gave the sale a yield of 7%. The 251 sqm unit was sold along with seven car parking spaces. by Mark Bristow

 

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DISCLAIMER: Every care has been taken to verify the accuracy of the information contained herein, but no warranty is given or implied and prospective purchasers/ tenants are advised to carry out their own investigations. Details herein do not constitute any representation by the vendor. Lessor or the agent and are expressly excluded from any contract.