With Thirty-Three (33) auctions on the Northern Beaches last weekend, R&W’s Glen Wirth was privileged to be the auctioneer at Four of the Auctions [with 4 sales]. We are seeing that confidence in the market has built upon the momentum that started in November last year is still heading in the same positive direction, certainly a strong turn around from what we were experiencing 9 months ago!
While the Reserve Bank increased rates again on Tuesday this week and with expectations of another rise over the next couple months, interest rates are still below the Reserves’ economic “neutral“ position! Viewing the weekend’s results - buyer confidence seems to be moving with interest rates rather than having its usual inverse relationship. Put simply, although interest rates are going back up to their historical average, the market in our area is likely to keep powering on – with no sign of buyer interest coming off the boil.
Many cashed up buyers on our database would like to see more homes coming to the market, for those considering selling, now is definitely the time to come & have a confidential chat about the market with the team at R&W.
For those who have been out at the opens & attending recent auctions, it doesn’t take long to notice that there are many buyers out there searching for a new home (22 registered bidders for 16 New Street East, Balgowlah) and with a relatively low level of new listings - the demand trend is likely to keep on its current path for the foreseeable future.
The prestige market as we commented on 2 weeks ago is continuing to build momentum, for those looking to upgrade there are still great opportunities to take advantage of the greater market activity at the lower price brackets & comparatively less competition at the top end.
With today’s topic of the Trend is up…, it is prudent to look at why we are experiencing this trend. This week the 6th Annual Demographia International Housing Affordability Survey: 2010 has been released. A worthwile read for those with a bit of time on their hands!
Looking at the trends from a Global, National and local view the reasons are similar, however at the local level there are some subtle differences.
Over all – supply & demand are very much the key to strong prices being paid for property. Looking at the below diagram we see that in Sydney particularly, the number of new properties being built had been falling substantially over the past few years. With the current Australian immagration policy - demand for housing is continuing to grow substantially faster than the supply.
In our local area there is only a very limited number of blocks that have come to the market in the past decade & there is a very limited supply that can come to the market in the years to come, so for our area the new builds are replacing existing homes rather than adding to the housing supply.
With the lifestyle that the Beach side / Harbour side location of our area offers, we are going to continue to find that out of area buyers are drawn to our gorgeous pocket of Sydney and as such we will continue to see increasing demand without the opportunity of any significant additional supply.
It’s not a bad lifestyle with Manly Beach on your door step!
Continuing our review of our local suburbs sales statistics
Today we delve into North Balgowlah and see what’s been happening over the past few years.
North Balgowlah sales so far in 2010* (House / Townhouse / Semi)
Total number listed 6
Total number of sales recorded 1
Private Treaty 1 Properties $980,000 (Total Value)
North Balgowlah Sales in 2009* (House / Townhouse / Semi)
Total number listed 60
Total number of sales recorded 42
Total Value Sold $ 38,257,335
Public Auction 12 Properties $ 8,905,000 (Total Value)
Public Auction Average $890,500
Private Treaty 30 Properties $29,352,335 (Total Value)
Private Treaty Average $1,012,149
Median Price $879,000
Average Price $980,957
Highest Sale $1,785,500 (R&W)
North Balgowlah Sales in 2008* (House / Townhouse / Semi)
Total number listed 67
Total number of sales recorded 53
Total Value Sold $52,568,750
Public Auction 16 Properties $16,942,250 (Total Value)
Public Auction Average $1,058,890
Private Treaty 37 Properties $35,626,500 (Total Value)
Private Treaty Average $962,878
Median Price $955,000
Average Price $991,863
Highest Sale $1,805,000
North Balgowlah Sales in 2007* (House / Townhouse / Semi)
Total number listed 61
Total number of sales recorded 58
Total Value Sold $57,294,893
Public Auction 17 Properties $18,406,000 (Total Value)
Public Auction Average $1,082,705
Private Treaty 40 Properties $38,888,893 (Total Value)
Private Treaty Average $948,509
Median Price $900,000
Average Price $987,842
Highest Sale $1,750,000 (R&W)
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.
See you at the open for inspections www.teamrw.com.au/buy/opentimes-sales/
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 www.teamrw.com.au/buy/local-market-watch/*
*Sales are as reported by Australian Property monitors on 05/03/2010