Wednesday, July 28, 2010

The Top End in demand!

It’s the end of July and the middle of winter, yet so much is brewing in the Real Estate market.

An update from the frontline
When it comes to attendance at open homes, days on market and negotiating sales the feedback is virtually contradictive right now – it all depends on which area of the market you’re dealing in.

“$1m homes boom. Market confidence drives record sales”. That was the headline from the Sunday Mail’s David Nankervis last week, and he is spot on. The ball is well and truly rolling in the top end and sellers are tapping into this positive shift. At Toop&Toop we’re seeing registered buyers showing keen interest in beautiful homes priced over $1million, with early ‘off market’ inspections attracting good attendance. Last week I spoke of multiple bidders on a $3million home in St Georges – for those who missed out or are looking in this bracket, there will be more prestige properties being launched over the next couple of weeks (register as a VIP buyer at www.register.toop.com.au).

Across the board it’s quality homes needing little work that buyers are seeking, and in the Eastern suburbs there’s a shortage in the mid price bracket. Are these sellers still insisting on holding off for the age old ‘Spring launch’ just to compete with so many other properties? Or…

Is it a case of election fever?
Election days are a funny thing in the world of property… in fact, historically, election day sees BIG buyer numbers at open inspections. It’s true! Whether it’s time to go to the polls on a state or federal level, voters are forced out and about on mass, often planning in a few ‘stop offs’ along the way in the form of open inspections. As a seller, this isn’t the weekend you avoid, but one you embrace with arms wide open – and what better time to vote during the day than when your home’s open to buyers?

Interest rates
With the Reserve Bank set to meet this Tuesday it’s a matter of ‘will they or won’t they’. Earlier this week the finance sector were saying yes, but would the RBA really do this in the middle of an election campaign? After all, it may not bode well for the current government. Well Wednesday’s release of the inflation figures has subsided these concerns somewhat. With a growth of 0.6%, lower than the 1% forecast, it’s unlikely the RBA will increase the cash rate this week.

So with the cost of living on the rise and interest rates often viewed as an ‘uncertainty’ is property still the way to go when it comes to investing?

Showdown 2 – Property vs Shares
Greg Troughton and Amy Durant from REISA represented the property side while Mark Potter and Ryan Bamford from Baker Young Stockbrokers argued for shares. It was an intense and cleverly thought out debate with creativity used by both sides in bringing home their points. Guest judges Adrienne Smith (Commonwealth Bank), Cosi (SAFM) and David Stowe (NAB) all cast their votes with shares winning 2-1. But the public had the final say and they voted property as the Showdown 2 winner! Log on to www.toop.tv to catch all the highlights.

Mandy Wurth, General Manager
www.toop.com.au
© Toop Real Estate Group

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