Latest News
We live in interesting times!
Friday, July 25, 2008
Welcome to the winter 2008 edition of the Patterson Morton real estate property report. Since our last report there have been significant changes in the direction of the real estate markets around Australia and indeed, further changes are expected over the coming 6-12 months. Over the past few months the deterioration and upheaval of the U.S. financial markets and U.S. real estate markets have also affected the property and finance industries both in Australia and the United Kingdom. The effects are in process as this report is being written.
The Market and the questions!
We have 2 types of clients that largely live in the local area. The first group keenly watch from week to week and month to month the actions and result in the real estate market. The second group of clients have no active interest in real estate but in most cases recognise that the majority of their cold hard assets are in one way or another tied to real estate.
Both groups at this moment are asking the same question… What is happening to prices in real estate??
The answer can only be part of a bigger picture of global economies, stock markets and increasing local interest rate hikes.
There is no easy answer or forecast as there are too many variables however whilst the papers seem to be enjoying doom n gloom forecasting we have seen in the latter parts of 2007 and early parts of 2008 a generally healthy influx of new families into Pittwater looking for and buying new homes. Our best suggestion is don't be the last property on the market this year as it is taking longer then normal to match the right buyer to each property. The residential rental market has currently a shortage of rental properties which has caused a significant and ongoing rise in rents. With prices easing and the stock market fluctuating it is becoming apparent that rental property is starting to look more and more attractive. History has shown in 1988 and 1992 that when the stock market takes a tumble the property market is usually the first to recover and after the negative media ceases and a period of calm we anticipate a improving market by the influx of superannuation funds into property and general investment both at the rental end of the market and the prime position property market.
- Alan Morton - Business Development Manager