Market Report Vendors hold off and wait for Spring.

The volume of properties for sale in July this year compared to the previous 2 years is down by approximately 40% according to auction submissions across the South East region of Sydney; this clearly indicates that vendors are in no rush to sell their properties in this area. Naturally this is keeping the property market buoyant with clearance rates anywhere between 70% - 80% each month in 2011 for the N G Farah Group.

Uncertainty overseas, increased taxes and a massive debate on the carbon tax is creating uncertainty amongst sellers. Also the big banks have alienated their customers by continuously changing banking criteria and essentially having a monopoly on the market amongst the big four, which gives consumers less choice and in most cases a higher interest rate.

Home loan applications are down and the retail sector is struggling with the cold winter blues and a growing consumer base is shopping online. It is likely that the reserve bank will reduce interest rates within the next three months to take the pressure off Mum´s and Dad´s with mortgages and increase some consumer confidence.

Essentially the property market is strong with N G Farah recording $420 million in residential sales in the 2011 financial year. It is likely that property values will continue to increase in the South East region of Sydney as the price point for properties up to $1 million dollars covers these suburbs: Zetland, Mascot, Eastlakes, Pagewood, Botany, Daceyville, Maroubra Junction, Matraville, Chifley, Hillsdale, Little Bay and La Perouse. They also have good access to the city, beaches and airports.

Our recommendation to our clients is to attend our in room auctions at the Crowne Plaza Coogee on a monthly basis to gauge the market first hand.

Our next in room auction is Tuesday 26th July at the Crowne Plaza Coogee.