We have a general consensus, as discussed in previous editions of “Real News”, that NSW is thousands of homes under supply & the current demand is forcing prices up. While one article in yesterday’s Daily Telegraph suggests that  new housing builders are doing it tough – “Taxes shut door on new housing” – with Monarch homes losing $20,000 per home built & sold in 2009. Last weekends Financial Review’s feature article was back to “What’s Driving Property Prices” and talking about how bullish prices are.

What is going on?

RP Data’s Tim Lawless (National Research Director) felt the need to state that “We are not in a housing bubble”. Mr Lawless reveals that a housing ‘bubble’ suggests housing values increased too rapidly and are set to experience a rapid decline, a fate not likely to come to be experienced in Australia. “Across Australia’s capital cities, home values have increased by just 6.2 percent per annum over the last five years – a rate of growth that is in line with wages growth which has been 6.0 per cent per annum over the same time frame” An interesting point!

The Financial Review Easter weekend edition, explored the buoyant market being experienced throughout Australia (with auction clearance rates remaining above 70%) and delved into some of the forces driving the market.

Further on this topic – Rod Cornish of Macquarie Capital Advisers, points out that although first-home buyer numbers have been in decline since they peaked at 30 per cent of the market in May last year, the market has been driven for the past six months or more by repeat buyers or upgraders.

Real Estate Institute of Australia President David Airey, backs this up stating that upgraders now account for almost 60 percent of the market and many have sold their previous home to first-home buyers

Building on the demand side of the equation, Richardson & Wrench Seaforth/Balgowlah (R&W) have however, been experiencing an increase in foreigners securing property as the Foreign Investment Review Board relaxed purchasing requirements last March – with a number of buyers flying in for a week to 10 days to secure a home on their trip.

Reviewing the market, selling conditions remain buoyant and our feeling is that the market has moved past the uncertainty of the GFC & has now found steady ground.

In this market, particularly for prestige homes – vendors need to be accurate with their anticipated price to achieve a sale in a favorable timeframe. Purchasers will also need to act or you are likely to miss out with someone else moving in ahead of you.
 
Cutting through all the information – What’s our advice?

If you like a property, you can afford it and are planning for the longer term – jump in now and secure it. We enjoy a fantastic lifestyle on the gateway to the Northern Beaches – its time for you to spend your time enjoying it in your “castle”!

 
We look forward to your posts on the blog with any additional thoughts & comments from our readers.

Please feel free to email us if you have any further questions about the market or real estate in general – it would be great to hear from you.

Till we meet again, wishing you all the best in your property search!

The Team at R&W Seaforth/Balgowlah.

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See you at the open for inspections: Click Here for our open times

To keep an eye on this week’s reported Seaforth real estate, Clontarf real estate, Balgowlah real estate, Balgowlah Heights real estate and North Balgowlah real estate Click Here*

*Sales are as reported by Australian Property monitors on 9/04/2010

Many feel that our area’s greatest strength is the summer lifestyle and we at R&W have been making a point of enjoying the benefit of a swim/surf before and/or after work. The very lifestyle that motivates many of the purchasers we deal with to secure property in this area!

Competition for local property appears to be back with strong attendance to all open for inspections – one property in Balgowlah Heights recently enjoyed 65 groups through a single open.

The prestige market has over the past couple of months, enjoyed a level of enthusiasm not experienced for over 18 months. There has not been the same number of buyers looking over $2 million as experienced in the early to mid $1 millions; however from the recent sales we have been privileged to bring together in the $2 – $4.5 million range (89 Seaforth Crescent Seaforth, 37 Edgecliffe Esplanade Seaforth, 42 Peronne Avenue Clontarf, 11 Gordon Street Clontarf, 19-21 Ellery Parade Seaforth, 6 David Place Seaforth)  – buyer confidence at this end of the market is definitely back  and a few more prestige listings are in the wings.

Most of us were pleasantly surprised when the Reserve Bank announced that they would be keeping rates on hold for the time being. From the current data however, it would appear that we are going to see interest rates continue to trend upwards this year, although most astute purchasers have been factoring this in for 6 months or more.

With unemployment seen as being back under control, inflation & housing activity are the main figures that the Reserve Bank will be monitoring closely and will determine how quickly interest rates return to their equilibrium levels.

Over the next few weeks we will be reviewing the sales activity of local suburbs over the past few years. Being located in Seaforth –it seemed a logical choice to start here.

Seaforth sales so far in 2010*

Total number listed                          41

Total number of sales recorded   10

Total Value Sold                               $13,567,500

Public Auction   3 Properties      $  3,655,000 (Total Value)

Public Auction Average                $  1,218,333

Private Treaty  7  properties       $  9,912,500 (Total Value)

Private Treaty Average                 $  1,416,071

Median Price                                      $  1,117,500

Average Price                                    $  1,356,750

Highest Sale                                        $  3,950,000 (R&W)
 

Seaforth Sales in 2009*

Total number listed                          180

Total number of sales recorded   174

Total Value Sold                               $226,737,894

Public Auction   37 Properties   $  40,542,500 (Total Value)

Public Auction Average                $  1,095,743

Private Treaty   137 Properties  $186,195,394 (Total Value)

Private Treaty  Average                 $  1,359,090

Median Price                                       $  1,106,750

Average Price                                     $  1,349,630

Highest Sale                                         $  4,600,000
 

 
Seaforth Sales in 2008*

Total number listed                          210

Total number of sales recorded   172

Total Value Sold                                $258,337,260

Public Auction   39 Properties    $  61,913,500 (Total Value)

Public Auction Average                $  1,587,525

Private Treaty   133 Properties  $196,423,760 (Total Value)

Private Treaty  Average                $  1,476,870

Median Price                                      $  1,085,000

Average Price                                    $  1,501,960

Highest Sale                                        $  5,910,000
 

Seaforth Sales in 2007*

Total number listed                          183

Total number of sales recorded   116

Total Value Sold                               $169,498,128

Public Auction   37 Properties   $  48,355,240 (Total Value)

Public Auction Average                $  1,306,898

Private Treaty   79 Properties     $121,142,888 (Total Value)

Private Treaty Average                  $  1,533,454

Median Price                                       $  1,235,000

Average Price                                     $  1,461,190

Highest Sale                                         $  8,310,000
 

Till we meet again, wishing you the best in your property search,
 

The team at R&W.

To keep an eye on this week’s reported Seaforth real estate, Clontarf real estate, Balgowlah real estate, Balgowlah Heights real estate and North Balgowlah real estate http://www.teamrw.com.au/buy/local-market-watch/*

*Sales are as reported by Australian Property monitors