Near Perfect Conditions

According to N G Farah General Manager, Walter Nanni, the current market conditions are "near perfect".

Mr Nanni, with a 20 year real estate background, believes that with interest rates on their way down.. following yesterday’s quarter percent drop and speculation of more decreases before the end of the year,  property prices being the most affordable that they have been in more than a decade, it is an ideal time for both buyers and sellers to make their move, secure their dream home or finally sell up the family home and down-grade into something smaller.

An interesting buyer-related fact is that it takes the average buyer at least 1-2 years to find a suitable property. It is definitely no easy task finding a residential property in Sydney's popular beach side and park side suburbs.

Most buyers go through the disappointment of missing out before they eventually find the home of their dreams.

We are also witnessing more families spending money on extensions and renovations rather than going through the whole formal process of upgrading to a superior property.

There is no doubt that buyers are scared off by the fixed costs associated with upgrading and the general shortage of sale properties in Sydney's South Eastern Suburbs.

This year especially we have noticed less properties on the market which has definitely put pressure on property prices as interest rates fall.

The mortgage market is super competitive right now with some of the intuitions offering 3 year fixed rate loans for as little as 5.5%.

The Governor of the Reserve Bank, Glenn Stevens, has clearly indicated that home loan interest rates will fall again in the coming months.

The average price for a free-standing home in Sydney metropolitan area is $640,000. Yet according to Walter, the average price for a free-standing home in Sydney's South Eastern Suburbs is closer to $1,200,000. With areas like Matraville, Maroubra, Pagewood, Botany, Mascot, Kingsford and Rosebery still on the up and up.

Most of our clients prefer to go to public auction, as determining a price can be difficult when demand is strong and supply is low.

Only recently N G Farah have sold several properties for hundreds and thousands above the reserve pricing due to this reason. To mention a few:

• 53 Coogee Street, Randwick
• 1 Oxley Street, Matraville
• 27 McNair Avenue, Kingsford
• 7 Mooramie Avenue, Kensington

Mr Nanni, also said that September / October / November is undoubtedly the prime selling season and buyers will have more choice during these months.

N G Farah have a range of quality park side and coastal properties listed for auction during this prime selling season. We expect property inspection numbers to increase during this time also.