Auction Clearance Rates

Morning followers, just a quick blog to detail the auction clearance rates for the week ending 12 Dec 10. These are kindly provided by RPData. Should you have any questions or opinions regarding this information, please leave a comment below! Click here to view. 

Be sure to visit www.raywhitecbd.com.au

My Opinion - Market Observations

Here are a few of my key observations and views on the current market:

• Investors are not yet deterred by interest rates and many are using their self-managed super funds to buy property. Australia’s largest mortgage broker, AFG reported last month 35.4% of new loans were to investors. 

• Properties under $1 million have been less affected by recent softening of the market, but there is still some caution being displayed in $1.0 million plus price range. I have no doubt that the overall market will increase considerably but it might not be in a straight line. Some sectors will increase sooner and faster than others over the next three years. 

• The prestige end of the Darwin market remains fairly stagnant. Due to relatively thin demand, some downsizers are sitting on their hands and waiting to sell in better times. 

• There is far less first homebuyer activity than last year with only 12% of new loans going to young purchasers nationally, according to AFG. First homebuyers are more active in affordable regional markets.

• According to RP Data, Canberra continues to be the best performing capital city for houses but it is due for a slowdown of growth. No markets can continue to experience 15-20% growth indefinitely, however I expect we will see a plateauing of prices rather than a correction over the next couple of years. Southern powerhouse Melbourne isn’t too far behind with Darwin still managing to finish 3rd amongst the capital cities in 2010 despite a year of consolidation.

Be sure to visit www.raywhitecbd.com.au

Don't wait too long!

I was sitting at TIO stadium watching NTFL powerhouse St Mary’s trounce another opponent when that quote came to me. I was speaking with keen investor and close friend Dylan Hale about buying property in the Top End. He was saying, in essence, that he & his wife had been looking to buy and weren't sure if this was the right time. The funny thing about buyers is that most want to buy when things are white hot, yet they choose to wait when things cool, albeit temporarily. It really doe’s defy logic. The smartest thing to do is the opposite, if you have the courage and are in a financial position to do so. 

Right now in Darwin the market is having a short breather courtesy of some strict lending and a few interest rate rises. In a short space of time, the market will be on the roll again. Everything that looks expensive today looks cheap tomorrow. I'm confident that come the 2011 Dry Season the market will start rolling again (if it hasn't already started beforehand).

So I counselled my cautious buying friend on two key things. First, never rush a property purchase or over commit by spending more than you can afford. And second, don’t wait too long because quality property is rarely left unattended; especially in Darwin where we still have a mass shortage of prime property. If you are ready to buy, don’t stop looking now because things have cooled down slightly, it’s actually the best environment to go shopping in.  

Be sure to visit www.raywhitecbd.com.au

We are now LIVE!

Hello followers, hope you enjoy our web portal and all its information. We look forward to being of assistance and fielding any questions you may have. More importantly, we hope this effort provides you with just enough information get you motivated to buy or sell property. Please, if any questions, do not hesitate to ask. Bianca & Daniel