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Mixed Markets
Monday, August 10, 2009
After 15 years of trading as real estate agents in the Pittwater area, we have to say that 2009 is both a complex and challenging year for both vendors and agents. As we have all read, the first home buyers have been keen to purchase property and take advantage of the generous “donation” in the form of the first home buyers grant and stamp duty exemptions. In most cases, the first home buyers are limited to entry level one bedroom units at $350,000 or 2 bedroom units around $400,000-$450,000.
One of the positive knock on affects has been that the unit sellers have typically then purchased local homes between $750,000 and $950,000 which has kept available stocks of good quality property in these ranges to a minimum. Sales above $950,000 represent a large part of the property market in Pittwater. This part of the market has seen a sharp decline in sales volume over the past 12 months along with a significant increase in the length of time on the market to find the right buyer.
In the same period of time we have seen interest rates drop to all time lows. Prices are now stabilising and banks are generally less difficult than they were in 2008. Consequently we have seen a constant stream of enquiries and inspections both weekend and mid week over the winter season. This demonstrates that buyers generally understand it’s a great time to purchase. Historically, Pittwater has been at the tail end of property cycles being the last area to rise and last area to fall. Recent reports from other parts of Sydney reveal that sales are becoming more consistent which is reflected in the higher than normal “out of area buyers” contacting our offices looking to relocate to Pittwater in 2009 and 2010.
- Alan Morton