Is stock getting harder to find?

The last month has been pretty uneventful across property listings with few changes in the composition of new and total properties listed for sale across the country.

The number of new properties advertised for sale sits right on the 12 month average and the number of new properties advertised for sale hasn’t been above the 12 month average level since early December. This highlights that aggressive interest rate cuts have improved home loan affordability and have seen the risk of wholesale stock dumping averted. At the same time 12 months ago there was an additional 3,500 properties advertised for sale compared to the current level.

Total properties listed for sale remain below the 12 month average and compared with the same time 12 months ago there is currently around 1,000 fewer total properties listed for sale. Similar to that witnessed across new listings, total listings have not been at a level higher than the 12 month average since early December. This result instills a level of confidence in the market, with sales clearly occuring and stock levels moderate compared to 12 month average levels.

The results also suggests that fewer people are looking to sell in the current market as rising unemployment and ongoing economic uncertainty ensues, home owners appear more likely to remain in their current residence (at least for the short-term) rather than listing their property and looking to upgrade.

First home buyers have been generating most of the activity, thus giving rise to the lower than normal stock levels available for sale. It will be interesting to see what happens to the property market once the first home buyers boost finishes on June 30 this year.

To see some properties go to www.nobullrealestate.com.au/properties.php

RP Data sourced

Is stock getting harder to find?

The last month has been pretty uneventful across property listings with few changes in the composition of new and total properties listed for sale across the country.

The number of new properties advertised for sale sits right on the 12 month average and the number of new properties advertised for sale hasn’t been above the 12 month average level since early December. This highlights that aggressive interest rate cuts have improved home loan affordability and have seen the risk of wholesale stock dumping averted. At the same time 12 months ago there was an additional 3,500 properties advertised for sale compared to the current level.

Total properties listed for sale remain below the 12 month average and compared with the same time 12 months ago there is currently around 1,000 fewer total properties listed for sale. Similar to that witnessed across new listings, total listings have not been at a level higher than the 12 month average since early December. This result instills a level of confidence in the market, with sales clearly occuring and stock levels moderate compared to 12 month average levels.

The results also suggests that fewer people are looking to sell in the current market as rising unemployment and ongoing economic uncertainty ensues, home owners appear more likely to remain in their current residence (at least for the short-term) rather than listing their property and looking to upgrade.

First home buyers have been generating most of the activity, thus giving rise to the lower than normal stock levels available for sale. It will be interesting to see what happens to the property market once the first home buyers boost finishes on June 30 this year.

To see some properties go to www.nobullrealestate.com.au/properties.php

RP Data sourced

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Will the First Home Buyers Grant Continue?

As June 30 approaches, there is a mixed opinion as to what will happen with the First Home Buyers Grant Boost. So far it has worked well, but does it need to continue?

Demographic data released this week showed that Australia’s population continued to grow through the September 2008 quarter. Across the 12 month period Australia’s population increased by more than 354,000 persons with a very impressive net overseas migration figure of more than 208,000 persons.

These results may have been tempered somewhat by the announcement earlier in the week of cuts to skilled migration numbers in order to try and shore up Australian jobs. Whilst this may result in net migration numbers declining somewhat, much of the impact will be offset by the fact that it is likely fewer Australian’s will be leaving our shores for jobs in the US and Europe as prospects are stronger in Australia than they are within these markets.

Much of the property media this week has also surrounded the looming deadline for the end to the increase of the First Home Buyers Grant. The Government only ever stated the grant would be available until June 30 2009, the short time frame of the incentive has had the desired effect and seen First Home Buyer finance commitments increase to their highest ever level. Given that first home buyers have enjoyed this stimulus, the Government may now look at ways to stimulate other sectors of the housing market post June 30.

Some anaylists are saying that the Government will extend the grant in the eleventh hour, thus trying to further stimulate the market, as it has been very successful so far. The problem for most agents is finding stock to sell that is in the price bracket of affordability for first home buyers.

Stimulus for investors or for second and third home buyers would be very welcome. In their recently released March 2009 Property Outlook, ANZ highlighted that underlying dwelling demand for Australia sits at 180,000 new dwellings annually, whilst dwelling commencements sit at around 150,000 pa. With building approvals falling recently, commencements may be next. As fewer dwellings continue to be built, further pressure is created on prices of existing properties, whilst rental market shortages are also exacerbated and owners take advantage by lifting their asking rents. Perhaps the Government should look at cutting the charges associated with new development as a way to stimulate housing market activity and to truly deliver more affordable housing product.

Another way to help stimulate the property market is for the State Government removing land tax on investment properties. More and more mum and dad investors are selling up as the affordability of investment is compromised by the fact that small investors are having to pay land tax. I can’t see this happening on a State level as they are in strife themselves.

There has been a increased enquiry from Government Departments including Department of Housing sourcing out larger parcels of land for development. At least Kevin Rudd’s stimulus package for development is working. Locally the Department of Housing is looking to build over 6,000 public housing homes in the next two years, which will help locally.

To see some well priced properties (if there are any left) go to www.nobullrealestate.com.au/properties.php

Or to see if there are any rental properties available go to www.nobullrealestate.com.au/rentals.php

Please feel free to leave a comment

RP Data Sourced

Will the First Home Buyers Grant Continue?

As June 30 approaches, there is a mixed opinion as to what will happen with the First Home Buyers Grant Boost. So far it has worked well, but does it need to continue?

Demographic data released this week showed that Australia’s population continued to grow through the September 2008 quarter. Across the 12 month period Australia’s population increased by more than 354,000 persons with a very impressive net overseas migration figure of more than 208,000 persons.

These results may have been tempered somewhat by the announcement earlier in the week of cuts to skilled migration numbers in order to try and shore up Australian jobs. Whilst this may result in net migration numbers declining somewhat, much of the impact will be offset by the fact that it is likely fewer Australian’s will be leaving our shores for jobs in the US and Europe as prospects are stronger in Australia than they are within these markets.

Much of the property media this week has also surrounded the looming deadline for the end to the increase of the First Home Buyers Grant. The Government only ever stated the grant would be available until June 30 2009, the short time frame of the incentive has had the desired effect and seen First Home Buyer finance commitments increase to their highest ever level. Given that first home buyers have enjoyed this stimulus, the Government may now look at ways to stimulate other sectors of the housing market post June 30.

Some anaylists are saying that the Government will extend the grant in the eleventh hour, thus trying to further stimulate the market, as it has been very successful so far. The problem for most agents is finding stock to sell that is in the price bracket of affordability for first home buyers.

Stimulus for investors or for second and third home buyers would be very welcome. In their recently released March 2009 Property Outlook, ANZ highlighted that underlying dwelling demand for Australia sits at 180,000 new dwellings annually, whilst dwelling commencements sit at around 150,000 pa. With building approvals falling recently, commencements may be next. As fewer dwellings continue to be built, further pressure is created on prices of existing properties, whilst rental market shortages are also exacerbated and owners take advantage by lifting their asking rents. Perhaps the Government should look at cutting the charges associated with new development as a way to stimulate housing market activity and to truly deliver more affordable housing product.

Another way to help stimulate the property market is for the State Government removing land tax on investment properties. More and more mum and dad investors are selling up as the affordability of investment is compromised by the fact that small investors are having to pay land tax. I can’t see this happening on a State level as they are in strife themselves.

There has been a increased enquiry from Government Departments including Department of Housing sourcing out larger parcels of land for development. At least Kevin Rudd’s stimulus package for development is working. Locally the Department of Housing is looking to build over 6,000 public housing homes in the next two years, which will help locally.

To see some well priced properties (if there are any left) go to www.nobullrealestate.com.au/properties.php

Or to see if there are any rental properties available go to www.nobullrealestate.com.au/rentals.php

Please feel free to leave a comment

RP Data Sourced

Dont forget the regional areas

With a great deal of focus on the nation’s capital cities housing markets, this week we turn the focus on each State’s largest regional markets to provide an insight into how these areas have performed in terms of housing values.

Outside the capital cities of each state, the largest municipalities are home to almost 2 million people. With such a large population base, the residential property markets in these regions are expansive and growing in size. These regions often provide even greater diversity in housing stock than found in the capital cities. The urban form ranges from typical metro housing to beach homes, large acreage properties, hobby farms and wineries. Each of the regions border a capital city boundary, so it is understandable that more and more people are viewing these more affordable housing markets as an alternative to living within the capital city metro area. Some residents may choose to commute into the capital city depending on transport connections, or these regions of course have their own economies and employment opportunities.

In New South Wales, the largest region outside Sydney is the Hunter area which is located directly north of Sydney and south of the Mid North Coast and is home to around 590,000 people. The major regional centres of Newcastle, Lake Macquarie and Port Stephens are located within the Hunter region, as are some of the most prestigious Australian wine regions. Median house values in the area are currently sitting at $310,000, which is about $245,000 lower than the Sydney metro median value. Over the last calendar year house values have fallen by 5%, after peaking in early 2008 at $328,000.

The second largest region in Victoria is the Barwon Statistical Division which has a population of about 260,000 residents. Barwon is located immediately West of Melbourne and includes council areas such as Greater Geelong, Surf Coast and Colac-Otway. House values in the region have been very resilient, falling by just 0.2% over the last 12 months to record a current median value of $294,000. House values in the region are almost $150,000 lower than house values in the Melbourne metro area where values are down 2.1% over the year.

In Queensland, the Gold Coast is the largest region outside of Brisbane. The Gold Coast has long been famous for its beaches and tourism, however over the last few decades the Gold Coast has established the largest office precinct outside of Brisbane and significant industrial estates creating a very large working population. Around 500,000 residents call the Gold Coast home and the region is one of the fastest growing in the nation. Median house values on the Coast have historically been about 25% higher than Brisbane values, largely due to the abundance of waterfront stock. At the end of 2008 Gold Coast house values were about $92,000 higher than Brisbane house values. Over the last year the Gold Coast market has been hit harder than most with values falling by 8%.

In South Australia the largest region outside Adelaide is Outer Adelaide with a population of about 125,000 people. The region wraps around the Adelaide metro area and includes the Fleurieu Peninsula, Mount Barker which is fast becoming a satellite city of Adelaide and the wine regions of Barossa and parts of the Adelaide Hills. House values in the region have not experienced as great an increase as the Adelaide metro, however over the last twelve months median values are up by 4.8% to reach $325,000; almost $90,000 lower than the Adelaide metro median house value.

The South West of Western Australia is the second largest region in the state after Perth. This expansive region borders the Perth metro area to the south and extends from Mandurah south to Manjimup, including the coastal areas of Bunbury and Busselton and the wine regions around Margaret River. House values have trended in line with the Perth metro market, with values recording very strong growth between 2003 and the end of 2006 but falling by 9.2% over the 2008 calendar year. The median house value in the region is now $345,000, which is about $130,000 lower than Perth metro values.

In Tasmania the largest region outside Hobart is Launceston. Actually, in population terms the Launceston council area is larger than Hobart with a population of around 63,000 people compared to 48,000 people. House prices in the Launceston Council area are down $20,000 or 8.3% over the 2008 calendar year. The median house price peaked in the first quarter of 2008 at $245,000 and has since fallen to $220,000 which is about $80,000 lower than the median house price in Hobart.

Even though the medium prices in the regional areas are not as high as capital cities, especially the Hunter, there are some great buying to be done. With an average of 6% yield on investment, investors would be best looking to the regional areas for property. Values have not fallen as far as the capital cities, so capital growth over the longer period is more stable.

If you are looking to buy, sell rent or have a property managed, or even your strata plan managed, give us a call ……you might be surprised what we can do for you without the high costs associated. Take a look at some well priced properties www.nobullrealestate.com.au/properties.php

RP Data Sourced

Dont forget the regional areas

With a great deal of focus on the nation’s capital cities housing markets, this week we turn the focus on each State’s largest regional markets to provide an insight into how these areas have performed in terms of housing values.

Outside the capital cities of each state, the largest municipalities are home to almost 2 million people. With such a large population base, the residential property markets in these regions are expansive and growing in size. These regions often provide even greater diversity in housing stock than found in the capital cities. The urban form ranges from typical metro housing to beach homes, large acreage properties, hobby farms and wineries. Each of the regions border a capital city boundary, so it is understandable that more and more people are viewing these more affordable housing markets as an alternative to living within the capital city metro area. Some residents may choose to commute into the capital city depending on transport connections, or these regions of course have their own economies and employment opportunities.

In New South Wales, the largest region outside Sydney is the Hunter area which is located directly north of Sydney and south of the Mid North Coast and is home to around 590,000 people. The major regional centres of Newcastle, Lake Macquarie and Port Stephens are located within the Hunter region, as are some of the most prestigious Australian wine regions. Median house values in the area are currently sitting at $310,000, which is about $245,000 lower than the Sydney metro median value. Over the last calendar year house values have fallen by 5%, after peaking in early 2008 at $328,000.

The second largest region in Victoria is the Barwon Statistical Division which has a population of about 260,000 residents. Barwon is located immediately West of Melbourne and includes council areas such as Greater Geelong, Surf Coast and Colac-Otway. House values in the region have been very resilient, falling by just 0.2% over the last 12 months to record a current median value of $294,000. House values in the region are almost $150,000 lower than house values in the Melbourne metro area where values are down 2.1% over the year.

In Queensland, the Gold Coast is the largest region outside of Brisbane. The Gold Coast has long been famous for its beaches and tourism, however over the last few decades the Gold Coast has established the largest office precinct outside of Brisbane and significant industrial estates creating a very large working population. Around 500,000 residents call the Gold Coast home and the region is one of the fastest growing in the nation. Median house values on the Coast have historically been about 25% higher than Brisbane values, largely due to the abundance of waterfront stock. At the end of 2008 Gold Coast house values were about $92,000 higher than Brisbane house values. Over the last year the Gold Coast market has been hit harder than most with values falling by 8%.

In South Australia the largest region outside Adelaide is Outer Adelaide with a population of about 125,000 people. The region wraps around the Adelaide metro area and includes the Fleurieu Peninsula, Mount Barker which is fast becoming a satellite city of Adelaide and the wine regions of Barossa and parts of the Adelaide Hills. House values in the region have not experienced as great an increase as the Adelaide metro, however over the last twelve months median values are up by 4.8% to reach $325,000; almost $90,000 lower than the Adelaide metro median house value.

The South West of Western Australia is the second largest region in the state after Perth. This expansive region borders the Perth metro area to the south and extends from Mandurah south to Manjimup, including the coastal areas of Bunbury and Busselton and the wine regions around Margaret River. House values have trended in line with the Perth metro market, with values recording very strong growth between 2003 and the end of 2006 but falling by 9.2% over the 2008 calendar year. The median house value in the region is now $345,000, which is about $130,000 lower than Perth metro values.

In Tasmania the largest region outside Hobart is Launceston. Actually, in population terms the Launceston council area is larger than Hobart with a population of around 63,000 people compared to 48,000 people. House prices in the Launceston Council area are down $20,000 or 8.3% over the 2008 calendar year. The median house price peaked in the first quarter of 2008 at $245,000 and has since fallen to $220,000 which is about $80,000 lower than the median house price in Hobart.

Even though the medium prices in the regional areas are not as high as capital cities, especially the Hunter, there are some great buying to be done. With an average of 6% yield on investment, investors would be best looking to the regional areas for property. Values have not fallen as far as the capital cities, so capital growth over the longer period is more stable.

If you are looking to buy, sell rent or have a property managed, or even your strata plan managed, give us a call ……you might be surprised what we can do for you without the high costs associated. Take a look at some well priced properties www.nobullrealestate.com.au/properties.php

RP Data Sourced

Dont forget the regional areas

With a great deal of focus on the nation’s capital cities housing markets, this week we turn the focus on each State’s largest regional markets to provide an insight into how these areas have performed in terms of housing values.

Outside the capital cities of each state, the largest municipalities are home to almost 2 million people. With such a large population base, the residential property markets in these regions are expansive and growing in size. These regions often provide even greater diversity in housing stock than found in the capital cities. The urban form ranges from typical metro housing to beach homes, large acreage properties, hobby farms and wineries. Each of the regions border a capital city boundary, so it is understandable that more and more people are viewing these more affordable housing markets as an alternative to living within the capital city metro area. Some residents may choose to commute into the capital city depending on transport connections, or these regions of course have their own economies and employment opportunities.

In New South Wales, the largest region outside Sydney is the Hunter area which is located directly north of Sydney and south of the Mid North Coast and is home to around 590,000 people. The major regional centres of Newcastle, Lake Macquarie and Port Stephens are located within the Hunter region, as are some of the most prestigious Australian wine regions. Median house values in the area are currently sitting at $310,000, which is about $245,000 lower than the Sydney metro median value. Over the last calendar year house values have fallen by 5%, after peaking in early 2008 at $328,000.

The second largest region in Victoria is the Barwon Statistical Division which has a population of about 260,000 residents. Barwon is located immediately West of Melbourne and includes council areas such as Greater Geelong, Surf Coast and Colac-Otway. House values in the region have been very resilient, falling by just 0.2% over the last 12 months to record a current median value of $294,000. House values in the region are almost $150,000 lower than house values in the Melbourne metro area where values are down 2.1% over the year.

In Queensland, the Gold Coast is the largest region outside of Brisbane. The Gold Coast has long been famous for its beaches and tourism, however over the last few decades the Gold Coast has established the largest office precinct outside of Brisbane and significant industrial estates creating a very large working population. Around 500,000 residents call the Gold Coast home and the region is one of the fastest growing in the nation. Median house values on the Coast have historically been about 25% higher than Brisbane values, largely due to the abundance of waterfront stock. At the end of 2008 Gold Coast house values were about $92,000 higher than Brisbane house values. Over the last year the Gold Coast market has been hit harder than most with values falling by 8%.

In South Australia the largest region outside Adelaide is Outer Adelaide with a population of about 125,000 people. The region wraps around the Adelaide metro area and includes the Fleurieu Peninsula, Mount Barker which is fast becoming a satellite city of Adelaide and the wine regions of Barossa and parts of the Adelaide Hills. House values in the region have not experienced as great an increase as the Adelaide metro, however over the last twelve months median values are up by 4.8% to reach $325,000; almost $90,000 lower than the Adelaide metro median house value.

The South West of Western Australia is the second largest region in the state after Perth. This expansive region borders the Perth metro area to the south and extends from Mandurah south to Manjimup, including the coastal areas of Bunbury and Busselton and the wine regions around Margaret River. House values have trended in line with the Perth metro market, with values recording very strong growth between 2003 and the end of 2006 but falling by 9.2% over the 2008 calendar year. The median house value in the region is now $345,000, which is about $130,000 lower than Perth metro values.

In Tasmania the largest region outside Hobart is Launceston. Actually, in population terms the Launceston council area is larger than Hobart with a population of around 63,000 people compared to 48,000 people. House prices in the Launceston Council area are down $20,000 or 8.3% over the 2008 calendar year. The median house price peaked in the first quarter of 2008 at $245,000 and has since fallen to $220,000 which is about $80,000 lower than the median house price in Hobart.

Even though the medium prices in the regional areas are not as high as capital cities, especially the Hunter, there are some great buying to be done. With an average of 6% yield on investment, investors would be best looking to the regional areas for property. Values have not fallen as far as the capital cities, so capital growth over the longer period is more stable.

If you are looking to buy, sell rent or have a property managed, or even your strata plan managed, give us a call ……you might be surprised what we can do for you without the high costs associated. Take a look at some well priced properties www.nobullrealestate.com.au/properties.php

RP Data Sourced

As seen on TV

Some people arent going anywhere

The number of newly listed residential properties is now leveling after the post festive season ramp up. Importantly, the number of new properties being advertised has leveled well below the pre-Christmas number. New listings are now at the same level as what was recorded prior to the spring selling season and well below the twelve month average. Correspondingly, the total number of properties for sale has leveled below the twelve month average, with approximately 120,000 houses and units available for sale.

The reduction in new and total listings supports the theory that some vendors have withdrawn their property from the market (higher priced homes) and some stock has been absorbed by the increase in the first home buyer numbers (lower priced properties). The reduction in effective supply should be viewed by market professionals and property owners as a positive indicator of improving market health. For buyers, the adjustment in stock levels means that buyer leverage, which is currently very high, may slowly be eroded as the market re-balances during 2009.

There are still a lot of homes in the local area that are just sitting there not selling. This is because of agents overquoting on price. These vendors are slowly learning that the market is not going to catch up on the price they are asking. In a good market you can set a price 10 to 20% above market and chances are that over 3-4 months the market will catch up. These over priced homes are creating an impression that there are still many homes for sale. If you take the over priced homes out of the equation, you find there is more likely an undersupply.

To see some WELL priced properties go to http://www.nobullrealestate.com.au/

RP Data Property Pulse sourced