Market Watch

The October results from the RP Data-Rismark Home Value Index indicate that the value of capital city homes in Australia has fallen 4.0% overall during the last year, but more significantly for Queenslanders, there was an 8.0% fall in Brisbane house values. In other words, a home with a market value of $450,000 last year is now worth around $414,000.

Auction clearance rates remain depressed last week. Although there was an increase in the number of auctions held (2,139 auctions) and a slight improvement in Melbourne’s clearance rate (from 45.9% to 52.1%), Brisbane fell from 30.1% to 22.7%. This wins Brisbane the dubious honour of the second worst auction clearance rates in the country.

Let’s hope that the RBA interest rate cuts will be reflected in the November results.

*Data courtesy of rpdata.com

Market Watch

Data released this week by the Australian Bureau of Statistics reveals that completed construction activity rose by 12.5% in the last quarter. This does not mean, however, that the building industry is bouncing back. This increase was driven by engineering works, with the building sector experiencing only a tiny increase of 0.6%.

Successful auctioning is always an indicator of a thriving market, but unfortunately auction clearance rates are on the decrease again. The average capital city rate has remained below 50% for 20 consecutive weeks, but Brisbane is well below that at 30.1%. Little wonder that the number of properties taken to auction has fallen in the last week from 1,893 to 1,699.

The number of properties for sale nationwide is 28.1% higher than it was this time last year, and 26.3% higher across the combined capital cities. Given this surplus of houses, and the attendant lack of competition, home owners will inevitably have to drop their prices to attract buyers.

With the high number of houses on the market at the moment and low auction clearance rates, consumer confidence was still low in the month of October, and I predict that the spring stats (which are traditionally some of the highest of the year) will be low again this year. Hopefully things will improve in the New Year.

*Data courtesy of rpdata.com

Top 10 Tips to Selling Your Home

1) Really make the decision to sell.

The decision to sell your home is a commitment of money, time and energy. Make sure you're ready when you sign up with an agent and that all the parties involved (any owners, including absentee or part owners, the agent and tenants) are fully informed.




2)Depersonalise your home.

You want prospective buyers to see the house as their new home, so pack up personal items and photographs.


3)Declutter.

Everybody has clutter, but it makes a home look smaller and harder to keep clean and organised. Take everything off the front of the fridge, clean off desktops and benchtops. If you have any kind of collection, from figurines to beer cans, pack them away.




4)Organise cupboards.

Buyers have the right to open any built-in storage space in your home, so tidy up these spaces as well.


5) Don't empty the house.

Just as a buyer has trouble visualising when a house is too cluttered, they also have trouble when there is no furniture in place, so try and strike a balance. If you're stuck for ideas, have a look through furniture catalogues or visit a show home in your area.


6) Make minor repairs.

It's probably not worth investing large sums of money in renovations (although you should consult your agent and ask their advice), but it is a very good idea to undertake minor repairs before you list your home for sale. A buyer can be turned off by the smallest detail, so:


*Fix leaking faucets
*Repaint very bright colours that are not to everyone's taste.
*Replace light bulbs
*Patch holes in walls
*Replace cracked floor or wall tiles




7) Clean, clean, clean

Of course there are varying degrees of cleaning a house, from the "that'll do-tidy up" to the "my mother-in-law is coming to visit" hysteria. It's best to imagine the latter when preparing your home for viewing, because buyers come into your home prepared to be critical. So:


*Wash windows inside and out
*Vacuum and wash floors
*Dust
*Scrub out the bathroom
*Empty rubbish bins
*Wash out sinks
*Clean fans and ovenhoods
*Wipe off shelves
*Clean off dirty marks on paintwork


8) Curb Appeal

The first impression that the buyers receive when they pull up to your house is vitally important. Tidy the exterior of your home, mow the lawns and weed the garden. It's not a bad idea to plant some potted colour, but remember that a garden should look attractive but low maintenance.


9) Use your nose



As strange as it sounds, the smell of a house can be the deciding factor on whether someone wants to buy your house. Even if you think it smells fine - it's a good idea to use cleaning products with pleasant scents, light some fragrant candles, buy some fresh flowers and open windows and doors beforehand to ensure that the air isn't stale. Also, having freshly baked cookies and coffee available in the kitchen makes a home feel and smell delightful, and can really charm a prospective buyer.


10) Be realistic about price

You can have a perfectly prepared house, but if you price it out of the market you won't get any offers. Do your homework about recent sales in your area, and study the CMA that your agent gives you.


Good luck!


The Team
WebNetRealty.

Keep Calm and Call WebNet

Scared Silly By Housing Market

As Halloween creeps up on us, America shows a sense of humour over their housing market:

10 Reasons Why Renting is Better than Buying

1. You can live in a way better house.

Say you can afford to spend around $550 a week on rent or a mortgage. For that amount of money you could make loan repayments on a house worth around $400,000, or you could rent something worth $500,000 or $600,000 (depending on the suburb).

So you could rent something like this:

Some of my best work

Or buy something like this:

Notice how subtle I am?

(The last pic was supposed to have a sad face, but somehow it came out angry. It's an angry door. I think I'm a little afraid of it).


2. You don't have to pay for repairs. If the oven/air-conditioner/toilet breaks, it's someone else's problem. Which is great, because these days plumbers charge more than lawyers.

My apologies to plumbers everywhere

3.You don't have to pay council rates.

Money

4. And you don't need a down payment, or need to pay bank fees, stamp duty or conveyancing costs.

Money, Money, Money and ... Wait for It...

5.You're not affected by downturns in the housing market. (In other words you're not the 80% of people currently trying to sell their house and having a dog-gone time of it).

6. Interest rates may go up without warning, changing your mortgage repayments from one fortnight to the next. Your rent, on the other hand, is fixed for the term of the lease.

(Mr Interest Rates turned out totally blind - I'm thinking that's my subconscious' final word on the chaps at the Reserve Bank).

7. You have greater flexibility to move. You know definitively when your lease is coming to an end and can plan your movements accordingly, without having to wait for an uncertain property market to catch up with you.

8. There's no pressure to renovate. No guilt over not having spruced up the second bathroom, because it's not your house.

9. You'll inevitably end up shopping at tenant-friendly IKEA, which I consider to be the home of AWESOME (but more on them later).

Wow, the scale on this one is way off.

10. There's nothing to stop you from buying another house to rent out (to stay in the market, for tax purposes, etc) while you yourself live in a rental. You'll have the best of both worlds.

Don't ask why you're a penguin. Just go with it.

In The News 18-24 July 2011

18 July
Rates may drop and the market rise.

20 July
Quest Brisbane West questions whether the sale of this heavenly piece of real estate reflects a decline in faith.

21 July

Go Gecko Going, Going, Gone? Many agencies are feeling the pinch.