2012 The Year Ahead
With out the help of a crystal ball to sneak a peek into the future, most real estate agents rely on previous data and historical trends mixed with current market activity to predict what lies ahead in the property market.
Enzo Raimondo, CEO of the Real Estate Institute of Victoria, said in a recent interview that he expects a better year than last with further interest rate cuts likely at sometime during 2012. He also reiterated his 2011 opinion that it is still an opportune time for first home buyers and investors to take advantage of our softer market.
It’s likely that overseas economic woes will continue into 2012, undermining the stronger local economy and keeping consumer confidence subdued. Global uncertainty plays a significant role in how we live here. Many people are nervous about spending money even though the outlook here is relatively positive.
One thing is clear though, the Melbourne market does move in cycles with some years being very strong and others not so. This is due to a whole range of factors. Changes in the economy certainly have an impact, as do misalignments between supply and demand. The latter was a significant factor in the market in 2011. More >
An Aroma in the Air
One of the first things you notice when walking into a home is its smell. Of all the five senses, they say smell is the most powerful emotional motivator and has the longest memory. This means our ability to recall a scent is greater than our ability to remember things we’ve seen.
When preparing your property for sale, there are many proven hints and tips to get the place looking its best. But have you considered the way it smells? The home-fragrance industry is a big business providing an abundance of options to fill your house. These include room sprays, plug-ins, diffuser reeds, gels, potpourri, essential oils, wax melts, incense, scented candles, sachets and drawer liners. So with no shortage of options, your home should hold a modest yet pleasurable perfume.
Incense is enjoying a revival of late, however it’s not for everyone. The smoke and associated smells can sometimes be overpowering and even become a trigger for people with allergies. Great if you enjoy the aromas yourself, or if you have no plans for an open for inspection any time soon.
Scented candles remain the most popular form of home fragrance these days, and for good reason. By day, they are More >
Market Speak
The Reserve Bank’s decision to lower interest rates by 0.25% is a move welcomed by most. The big banks also look set to pass on all or most of the rate cut which should go a long way to encourage more buyers into the market. The loan repayment on an average Aussie mortgage of $350,000 will be cut by around $50 per month.
The auction clearance rate for the weekend of 28/29 October was 53% compared to 53% last weekend and 66% this weekend in 2010. There were a total of 362 auctions reported of which 193 sold and 169 were passed in. 232 properties auctioned over the weekend were houses with the remaining 117 were units or apartments.
Units and apartments traditionally count for around one third of all auctions. And from a broad perspective of changes in median prices, there are few differences between the market for units or apartments and houses. The rises and falls in median prices have generally matched each other over the past five years. Units and apartments have performed slightly better this year when it comes to clearance rates, however. At auction 59% of units or apartments sell as opposed to 56.6% of houses.
According More >
Northcote Insight
A slow start to Spring is starting to fade away. With the current interset rate drop Northcote has seen a strong increase in enquiries. The sale of a nice house in Bridge St Northcote is testament to the changes we are seeing in the market. The property sold on the weekend despite the pouring rain, with an auction containing 4 bidders. As for economy at the moment there are talks of more interest rate drops in the near future which should help. People have been holding back to see how the market is faring but we are looking forward to a rush of properties entering the market in the new year. A later than average spring push was not strong enough to swing the market around, and it still favours the buyer, but we are seeing a few more buyers committing to the cause. In Northcote we are still up and around the 80% clearance rate so people shouldn’t be scared to sell, as they are still getting good prices and selling. We have had more listings coming in quite well in the last 2 weeks, and vendors are gearing up now for the new year. New developments are still More >
The Home Wine Cellar
In Australia we enjoy our wine – in moderation of course! Few homes, however, boast specialist wine cellars. They still rank well below home theatres and games rooms as luxury home add-ons.
Poor storage, especially in our fluctuating climate, can ruin potentially good wines and, if you are a serious collector, the rack in the corner of the living room or in an ordinary basement, just won’t do.
The combination of cost and poor knowledge of wine storage requirements is possibly why the majority of households do not have a dedicated cellar. They are quite expensive to build and maintain, and that’s before you fill it with pricey bottles of quality wine.
Of course for the dedicated wine buff, nothing short of a full-scale cellar will do. And most real estate agents believe that the additional cost of installation is worthwhile, even if you are not going to fill it with your favourite pinot and chardonnay. In fact, because they are so uncommon, a good cellar can sometimes put between five and 10 per cent on the value of a home.
So if are a wine enthusiast who is considering adding to your home, perhaps a wine cellar makes good sense. Be More >
News the Market and Northcote
There is no denying that October was a tough time for the real estate market, however it seems like the media is jumping on the sensationalization band wagon once again. With endless reports of Australia on the brink of another GFC and going the way of Europe or the United States, it is no wonder that vendors and buyer alike are getting scared. What people need to remember is that Australia has its own economy that is thriving in the midst of a world turmoil. More locally the urban sprawl of Melbourne to the trendy northern suburbs like Northcote is still on the rise. We have just seen an influx of high density property developments being approved for the next 12 months. One in particular is a 25 apartment complex that has just been approved on High Street. These developments have also led to an increase in off the plan sales, which in other suburbs is proving next to impossible in the current market. On another positive note we have just seen what should be the first of a couple of interest rate drops. This drop in interest rates combined with the growth and planning of Northcote means 2012 is More >
Don’t give cold water the cold shoulder
According to the manufacturers cold water laundry detergents wash most clothes perfectly well. Most if us, however, still cling on to our mum’s advice about using warm water to wash our clothes. However in the process we use up valuable energy and contribute to carbon emissions. And remember, you don’t need a carbon tax to become more aware of CO2 emissions.
According to TreeHugger, a full 90 percent of the energy used in washing clothes goes toward heating the water, so it stands to reason that using less energy by washing in cold, unheated water would create significant environmental savings. But just how much difference are we really talking about?
The TreeHugger number crunchers came up with some pretty interesting results. It turns out that pressing the cold/cold button (instead of the hot/warm button) on your washing machine has the same impact as driving about 9 miles in a car or the production, transportation and storage of a six pack of beer.
It may not be too surprising that one load of laundry doesn’t make a huge amount of difference compared to, say, not eating meat or dairy. But, multiply those impacts by 392 — the number of laundry loads an average U.S. home washes in More >
Death of the Australian Dream as pets pay the price
It’s not just houses among gum trees on ¼ acre blocks under threat from the supposed death of the Australian Dream; a report shows man’s best friend is also victim to a shift in where and how we live.
Dog and cat ownership is down across Australia, according to a report from the Australian Companion Animal Council that found high-density living, changing lifestyles and government legislation to blame.
The ACAC paper found that in the past decade Australia’s dog population has decreased by at least 14per cent and its cat population has dropped by about 10 per cent, as latest figures from the Australian Bureau of Statistics shows a decline in the rate of home ownership and rise human population.
Queensland figures from the Office of Economic and Statistical Research reflected the national downturn in pet ownership, with dog ownership in the state falling by 2.1 per cent from 2008 to 2010 as cats dropped by 1.4per cent.
The ACAC paper found slightly more than half of the state’s households accommodated cats and/or dogs in 2010.
And though pooches were more popular than pussies overall, Brisbane was among the survey regions with the lowest proportion of households with dogs.
Speaking from the inaugural Putting Pets Back More >
Getting ready to sell
When selling, a PPG real estate agent will discuss the benefits of different sales methods, the best way to advertise the property, and perhaps suggest improvements to maximise the selling price. We are fully equipped to assist in all of these areas.
Experience shows that vendors who invest in going that “extra mile” with presentation usually achieve a quicker sale and sometimes, a higher price. In a cautious market, the “wow” factor is more important than ever. You want to stand out from the crowd and attract as many interested buyers as possible. Your agent will assist with bringing buyers through your home, but you can help keep them there by investing in a few small improvements.
Here is a list of some of the tasks you may want to consider when preparing for sale. If your budget allows, you may want to consider help from professionals:
Home and Garden Maintenance – including weeding and rubbish removalHandyman services – re-hanging a door, replacing a window frame etcStyling – declutter, reposition, supply rental furniture and matching accessoriesEngaging the services of a professional stylist is one way to ensure every aspect of your home’s presentation is considered. However, a property makeover is not for everyone. More >
Domain scoops mobile technology award
Fairfax Media’s real estate website Domain.com.au won the ‘Best Audience Migration to Mobile Technology’ category at the 2011 Australian Mobile Awards, held in Sydney last week.
This category recognises migration of an audience from traditional media to a mobile platform.
“Domain recognised the trend that people are gravitating towards using mobile devices, not desktops, to access information,” said Tony Blamey, general manager real estate, Fairfax Marketplaces.
“All of the mobile devices are unique with a focus on an interactive and highly visual environment to create the best user experience. They are not a replication of the website content.”
“The team has spent the past couple of years working tirelessly to deliver property apps to the market that further enhance the user experience when buying, selling, renting or renovating a property.”
Domain said one of the key features of its iPad app is its interactive map, which allows all properties in a specific area to be perused.
“The ‘around me’ GPS feature enables users to view detailed property information in a particular location including the sale price for recently sold properties and other property listings in the vicinity,” Domain said.
As reported earlier this month by Real Estate Business, Domain’s three smartphone apps across Windows 7, Apple and More >