Friday, July 28, 2006

Brushing off the Winter Blues

Isn’t it amazing how much better we feel when the sun is shining ? On my drive to work this morning I felt more alive and ready to jump into the day. My fingers and toes are crossed that this is the start of the turn from the very cold weather that we have been having and we are now on the upside of the ride into spring!
Even over the last weekend whilst still cold, the sun came out to play and we noticed the increased attendance at open inspections for both sale and rental properties. If you are planning on putting your home on the market we suggest now is the time to consider it.
If you have started thinking about your move, and kept an eye on the market, you will have noticed the reduced number of real estate pages in The Advertiser. If you are trying to buy, you will have seen that there is a limited supply of the style of home that you are probably looking for and plenty of buyers trying to secure them. Come September hundreds of homes hit the market together and there is a plethora of choice for buyers.
So, consider placing your home on the market in August. There are less properties for sale so the quality of yours will stand out, hopefully creating competition between buyers for your home. You may then sell at a better price. You know exactly how much money you have to spend, you are cashed up, and then, when all of the homes hit in Spring you are in the ideal position to select from a larger range with better bargaining power.
It’s just a thought .…….. So if you would like some further advice, any of our sales partners would be more than happy to talk to you. Just give us a call.


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Friday, July 21, 2006

Rental increases hit the headlines

This week there have been endless reports of the pending increases in the rental crisis as we head into a period of historically low vacancy rates and a stable housing market. The industry standard for a stable rental market is considered to a vacancy rate of 3% and Adelaide at the moment has a vacancy rate at 1.7%. This compares with Melbourne and is lower than Sydney where rents are substantially increasing. To date Adelaide is recording an 8.8% growth over the previous 12 months which is well inexcess of inflation and combined with more stable house prices represents a real growth in return for investors.
There has been much speculation as to whether this will be the catalyst for another round of housing price increases as investors will be lured back into residential property as one of their preferred investment options.
The reasons for the rental market to be undergoing this rental growth is simple. Rents have remained almost stagnant over the past 5 years and during the boom period there was substantial influx of investors which provided a large supply of rental accommodation. First home buyers were active and moving out of rental accommodation into their own properties. This kept the supply and demand in equilibrium and saw an extended period of stable rents and in some cases we saw rents in decline, in 2004/2005 as the market came out of the boom and the stock market became attractive many investors moved out of property and into alternate investment areas. In short there are too few rental properties for the demand which is pushing rents up.
Is it time to buy back into the rental market? For long term investors there is an excellent track record of capital appreciation in property and with the upward trend in rents there is now improved cash flow, combined with historically low interest rates. So be sure to put property back on the agenda.

Happy House hunting!


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Thursday, July 13, 2006

The moral of the story ....

It might be cold, and it might be wet, and maybe not so pleasant out and about but it sure stands as a great test to the strength of the housing market when we see the level of activity each winter weekend. The good news for home sellers is that the buyers have not abated. They have not been avoiding blustery conditions in their endeavours to find their next home and sales are good.
Sure, there is more consideration on the part of the buyers when making their property selection but as the quarterly market statistics reinforced, Adelaide’s market is strong. We are now tracking second to Perth, as a city and anecdotally, it would appear that the lack of winter housing stocks has been the prime mover in recent weeks.
Our sales team are starting to have a day off on the weekend as they are down to one or two ‘opens’ and although it’s a lovely consequence of brisk sales, it is a bit unnerving when your livelihood depends on having listings. We always point out to home sellers in the pre-winter months that sales often occur at higher prices as a consequence of the shortage of available property through July and August. Although too early to be certain, it certainly looks that way again this year.
The moral of the story ..... if you are after a good price, winter’s good advice!
Good luck with your sale


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group

Thursday, July 06, 2006

Interest Rates on Hold Again !

It was pleasing to note that another rise in interest rates has been kept on hold at least for the short term. Please find following a quick snapshot of commentary on this issue :
The Reserve Bank of Australia (RBA) left interest rates unchanged for July but economists believe there may be a rise as early as next month.
ANZ head of Australian economics Tony Pearson said it was too soon to fully evaluate the impacts of the May rate rise.
“The most likely months for (monetary) policy adjustment would be August and November, following the June and September quarter inflation data,” he said.
“While we would normally suggest it would be prudent for the RBA to pause for a while, to allow time to more fully assess the impacts of the last rate increase, the robustness of economic activity and the persistence of cost and wage pressures suggests they may not have that luxury.
“The odds are rising that policy will be adjusted sooner rather than later.”
Author: AAP, Date: July 5, 2006, Publication: AAP
What we have found so interesting since the last rate rise was that it seemed to actually have a positive effect on the residential real estate market. It was almost like the rise actually galvanised people into action and they started to think seriously about making their next move. With the smaller number of homes that are traditionally on the market in winter the demand for homes has far outstripped the available supply. We have found that often properties are selling within the first couple of weeks on the market or being sold under the hammer on auction day, which is quite different from the market 12 months ago. So with Spring soon due, another stay on rate rises, and a seemingly confident market, the future looks good for both buyers & sellers alike !
All the best from us on your future real estate transaction!


Anthony Toop, Managing Director.


www.toop.com.au


© Toop Real Estate Group