Comment on the Market Climate The last 12 months can be described simply as a continuation of the 12 months prior to that. We have not seen the rebound in prices that many people have been hoping for, and the overall number of sales has dropped in most suburbs. Many people would deem this to be a buyers market, however, I must disagree. The drop in the number of sales has been counteracted by the drop in the average amount of properties on the market throughout the year, as sellers who were thinking about moving put their plans off or chose to renovate instead of upgrading. The amount of forced sales, in our area, are lower than what other areas are experiencing. External factors are having an impact on the real estate market, particularly confidence. The start of each month is spent by people commentating on rates, and will the banks pass on the full amount. In a strange way, we find that when rates drop, people hold off from making purchasing decisions, but when they increase, buyers move faster to secure a property. The change in government at the state level has brought some welcome relief for the property industry, with the rollback of the unsustainable sustainability declarations and the reintroduction of the stamp duty concession on the principle place of residence. This should see some confidence instilled in the upgrading market, as the savings may push people to take advantage of the concessions. Moving forward over the next 12 months, I believe it will be a continuation of the last 2 years. Until confidence returns to the market, we won't see the massive increase in prices that we were used to over the last decade. Getting the marketing and pricing right is critical to not only getting the property sold, but ensuring you don't undersell the home. The Inner West is not bulletproof, but when comparing the market we are in to others in Queensland, we are in a good place. The basic infrastructure is always going to be there, and the rental market underpinned by the university and our proximity to the CBD, we know this is one of the best places to live or invest across Australia.
Brett Andreassen June 2012