Cities of dreams as value of homes begins to soar

Date: October 6, 2009

Clearly Sydney and Melbourne are leading the property market recovery and now represent two of the nation’s most popular markets.

RP Data’s national home value indices published last week reveal that for the first eight months of the year Sydney home values rose 8.6 per cent, to reach a new median value of $546,867.

Melbourne also put in a stellar performance and has found its feet again to record a stunning 11.6 per cent price increase, bringing the median value up to $467,280.

These buoyant conditions are in stark contrast to the same period last year, when values were falling, sales volumes were at rock bottom and only 45 per cent of auctions were clearing.

Now we are seeing house values rising, market activity increasing, and almost three-quarters of auctions are recording a successful result.

While the sceptics have touted this as a potential market bubble waiting to burst, the figures confirm that the residential market is protected from a downturn in values by a broad range of factors.

Interest rates are at historic lows and — although rates will be lifted over the coming months — we will need to see a rise of 150 basis points before mortgage rates reach their 10-year average of 7.3 per cent.

Importantly, housing is in undersupply and the nation’s population is growing at a faster rate than in any other country in the Western world.

Australian development is being underpinned by the fastest rate of population growth since the baby boomers.

Other factors such as the health of the financial sector and lower-than-expected unemployment figures are also likely to support the housing market.

Over the next six months capital growth is likely to moderate across the Australian market.

Interest rate rises, together with a winding back of the boost to the first-home owners’ grant, are likely to dampen demand.

Tim Lawless is the national research director of rpdata.com.

Source: The Sun-Herald

Thump Thump Thump

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Record August growth in home values despite first home buyer demand winding back.

Capital city dwelling values – first eight months of 2009
•Sydney values up 8.6% to $546,867
•Melbourne values up 11.6% to $467,280
•Brisbane values up 5.2% to $443,197
•Adelaide values up 3.1% to $ 407,227

National property values jumped by almost 2 per cent in August in the largest monthly movement since the
RP Data‐Rismark Home Value Indices began in January 2005

According to rpdata.com research director, Tim Lawless, the August results
surprised on the upside and are indicative of very high levels of buyer
confidence combined with low levels of listings.

“These buoyant conditions sit in striking contrast to the same time last year
when values were falling, less than half of the auctions held cleared.

GOOD NEWS FULL OFFICIAL DATA CLICK HERE

DEE WHY HOME PRICES ON THE RISE!!!

Selling? Choose an award winning Agency – The Novak Agency – DeeWhy

Good news !!! Going up?

Business confidence recorded solid gains in the first quarter of 2009, but growth in 1Q09 appears to have been weak, with actual conditions deteriorating further.

Confidence improved by 7 points to -24, while conditions fell by 4 points to -20. The decline in conditions was once again consistent across the components, with trading (down 10 points to -20), profitability (down 5 points to -21) and employment (down 9 points to -25) all recording declines.

The survey provides a grim outlook on the prospects for the labour market, with only 5% of firms reporting any difficulty in finding suitable labour — compared to 30% a year ago.

THE NOVAK AGENCY FINALISTS FOR NATIONAL REAL ESTATE AWARDS

Well we were kind of chuffed that we made it this far!

As first timers entering into the REIA (Real Estate Industry of Australia) National Awards for Excellence, we were naturally feeling a little special making it through to the national finals for the Communications Awards.

Having taken out the state award, we were grinning from ear to ear when we were asked to submit for the national awards!

We didn’t take out the award this year however look out for 2010! We must say though we felt pretty pleased with ourselves making it as far as we did!

Thank you REIA, we felt priviledged to be sitting amongst some of the best in the industry and what a fabulous night! See you next year.

Read The Manly Daily article published 20/4/09 http://www.thenovakagency.com/theGoss.shtml

SUPERSIZE ME! THERE’S NEVER BEEN A BETTER TIME TO UPSIZE YOUR PROPERTY…ESPECIALLY ON THE NORTHERN BEACHES

SUPER SIZE!!!…..Famous words for those of us who are fortunate enough to dine at McDonalds. These words were also made famous by independant film maker Morgan Spurlock who made millions of dollars with his film “Supersize me” where he limits himself to only eating McDonalds over a 30 day period and had to supersize his meal each and every time he was asked.

For those that have had the pleasure of dining at McDonalds, we know that there is great value in supersizing or upsizing our meal(apart from the extra kg’s we add to our waistlines). Generally we’ll only have to part with a dollar or so for the pleasure!

Surprisingly enough this exercise rings true right here, right now with the Sydney property market.

As crazy as it sounds now has never been a better time to supersize your home especially on the Northern Beaches. Let’s look at it this way. The lower end of the property market, say up to the $500 000 mark is on the move right. For those of you sitting on property in this price bracket, you’re laughing. Lower end home owners…..it’s a great time for you to sell up, cash up and supersize your home especially for those of you living in Dee Why, Collaroy, Freshwater and the surrounding suburbs. Upgrading from the lower price bracket to the medium price bracket is very achievable right now as the middle price bracket has remained stagnant and therefore the jump from say a $500 000 unit to a $750 000 townhouse is now VERY feasible.

Surprisingly the same tune rings true for those supersizing your homes from the middle range price bracket to the high end range of living. Luxury housing in Sydney has actually dropped over the past six months making it therefore much more attainable for the medium level home owners to upgrade their homes with a relatively small (if any) jump in mortgage repayments.

Another fabulous reason to supersize your home right now is to of course to take full advantage of the 60 year all time low interest rates now sitting around 5%.

The market will certainly not stay this way forever. Now is an opportune time to take advantage of a fantastic market and utilise the opportunity to supersize your standard of living today and live in that home you always dreamed of.

We have your home.

Call us on 1300 4 NOVAK or 8978 6888.

24/7.

We never sleep.

THE NOVAK AGENCY – YOUR “SUPERSIZE ME” SPECIALISTS LOCATED ON THE NORTHERN BEACHES OF SYDNEY.

For more info go to www.thenovakagency.com

Reserve Bank Announces Interest Rate Cut

The Novak Agency is happy to report that The Reserve Bank (RBA) has cut interest rates by 0.25 of a percent (25 basis points) taking the official cash rate to a historic low of 3.00%.

We are also happy to report that CBA has headed the big four banks in slashing it’s interest rate by 10 basis points! You rock CBA….every little bit helps.

Buying a home has never been more affordable! Check out what we have on offer. We do have some sensationals buys….snap, snap!

Check out our hot properties at www.thenovakagency.com

Pssst…..You’d be a twit not to follow us on Twitter….http://twitter.com/thenovakagency

Biggest lift in home prices in 18 months!

Credit growth poised to recover Home prices; Private sector credit

• Australian home prices rose by 1.1 per cent in February, the biggest gain in 16 months. Dwelling prices were up 1.1 per cent for the first two months of 2009. Melbourne and Sydney led the gains.

• Private sector credit (loans outstanding) was flat in February with the annual growth rate falling to a 15-year low of 5.4 per cent. But money supply (M3) was up 14.7 per cent on a year ago.

• Credit responds with a lag to interest rate changes and new lending. New lending over December and January was the strongest in 18 months, so credit will lift in the second half of 2009. What does it all mean?

• Australian and US housing markets are like chalk and cheese. More?

Hold that home loan…UNEMPLOYED gets a helping hand from the big BANKS!

The “big four” (that’s Novak slang for the big four banks have come to arrangement to throw a lifeline to those struggling to pay their mortgages. These unprecedented move is aimed at preventing those struggling families from losing their homes. Commonwealth, NAB, Westpac and ANZ banks will actually place a freeze on mortgage payments in certain cases undergoing financial hardships. The government has recognised that the greatest fear for those who have or will loose their jobs is how they will pay the mortgage. This being said Mr Rudd set out to ask the Treasurer some time ago to negotiate an “assistance package” with the big four banks. Mr Rudd says the move will provide for a better handling of borrowers in hardship through job loss. He says banks will postpone mortgage payments for up to 12 months, with interest to be capitalised into the loan. The banks are also considering extending the period of mortgage contracts and reducing payment amounts.