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

NOVAK ‘GET DAYS ON MARKET’ STATS IN MANLY DAILY

DEE WHY HOME PRICES ON THE RISE!!!

BUY YOUR PIECE OF NORTHERN BEACHES PIE – HOME CONSTRUCTION & LAND SALES @ RECORD HIGHS

Seems we’re returning to the good old days with vacant blocks of land being snapped up now more than ever and it seems that more home buyers are looking to build their dream home than buy an existing dwelling.

In just the past seven months, loans to build new homes have risen by 42 per cent to record highs.

For those looking to live in, rather than invest in, new dwellings, lending demand is up across the board. It’s not just loans to buy existing homes that are being taken up but more loans are being taken out for renovations.

And loans to buy vacant blocks of land are at record highs.

While investors are dragging their heels, it won’t be too long before they get the message that the housing market is gaining momentum.

First home buyers now have another six months to embrace the generous grants from the government. If recent enthusiasm to buy and build is any guide, the home construction sector will be at the forefront of the economic recovery.

The sharp rise in dwelling construction is clearly good news. The rental market has been super-tight for a number of years but finally supply is catching up to the latest demand.

You would think that living in a country that has so much land it would be a piece of pie to snap up your little slither of paradise however not so in many areas of the Northern Beaches.

Vacant blocks of land are rather hard to come by however pockets of land can still be found in Warriewood, Mona Vale and Beacon Hill.

These generally sell very fast so leaving your details with The Novak Agency is definately the best way to go! Also keep an eye out on the website as this is constantly updated…

Click here to view The Novak Agencies latest properties for sale

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

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

RENTS SOAR AS HOUSING CRISIS WORSENS

New homes … more new homes will be built in Adelaide than in Sydney this year, data shows / AP
More homes to be built in Adelaide, Melbourne
Sydney in lowest rate of growth in 50 years
Rents tipped to soar across the nation
MORE homes will be built in Adelaide than in Sydney in 2009, proof that the housing crisis engulfing the nation’s biggest city is reaching alarming proportions.

Figures obtained by The Daily Telegraph show an estimated 7300 new dwellings will be built in Sydney this year, the lowest rate of growth in more than 50 years and roughly a third of the homes built in 2003.

LITTLE SYDNEY REAL ESTATE PICK???

“To the northern beaches, there may be good opportunities in standard residential located in Frenchs Forest. There is a dominance of 1960s housing which could have good potential for renovation and profit. Frenchs Forest has good road infrastructure leading to and from the city, and is close to the beach.Buying,selling or renting on the northern beaches, call us….we never sleep