Article: What Happened to the Markets in March?

What Happened to the Markets in March?
http://www.raywhite.net/?p=4774

Our obsession with overall market direction continues. It is apparent that a new factor needs to be incorporated in any searching analysis – the impact of some fading values in a number of our markets. Not in all, and not nearly as dramatic as many commentators have broadcast.

Many in real estate expect that a “sellers” market is the natural order of things and get frightened when that cycle (inevitably) turns.  Many buyers are now buying the desired asset that was previously beyond them.

So our total unconditional sales of $2.3 billion proved to us that a platform base is being established. Why? Evidence that buyers are beginning to relish their new found prominence in the property “feeding” cycle. Also encouraging is that buyers simply want a good deal and are not seeking to humiliate our sellers.

Again, there are many counter prevailing forces. Australia’s two biggest cities are powering on (predictions of Melbourne’s imminent reversal now seem panicky). New Zealand’s Auckland showing leadership.

The resource states (Qld and WA) are not yet enjoying an improved balance between buyer and seller. But this remains the theme we have focused upon for months – the big cities are showing the same resilience as the biggest US cities.

And buyers will continue to benefit from a renewal in competition between the Banks in home lending. Brokers are coming into their own in clarifying the differences in different mortgage products – the variety in offerings is perhaps the most comprehensive it has ever been. Stories of brokers being able to enhance the entire transaction to the benefit of their buying clients is constant.

Stability of interest rates (NZ actually lowered theirs) is good news.

A story from Indonesia is enlightening – their domestic market has rarely been so active and aggressive. And that is because their interest rates for borrowers have dropped to an “incredible low” ten percent! Proof that, at the end of the day, most things are relative.

What’s new at Ray White?

The Company’s just completed season of Award evenings was a continuing inspiration. Again and again, stories of commitment and skills’ development pervaded those taking the Award categories. More Awards for property management reflect the dramatically enhanced standing we now place on providing a dramatically elevated service to investment owners – who consistently own around 30% of all properties, although this percentage is under some pressure.

The key Group Awards will be presented at our Bali Conference in June.

A special purpose briefing on the property implications of the Christchurch market was recently held in Sydney. We often forget how much property is owned by expatriates. We were delighted with the response to our session. We will continue to conduct these  special sessions as a service to people interested in their property assets.

An agreement has been concluded to open in Kuala Lumpur – the opening ceremony to coincide with our Bali Conference. We continue to believe we have a role to play in Asia.

In Victoria, we continue to challenge that unique Melbourne tradition – where all Auctions should be held “on site” – recent successes from our Melbourne businesses are showing how powerful and successful are “in rooms” auction events.

Ray White Invest’s WA Retail Centres are being expanded to exploit their long evident potential.

Our next issue will look deeply into the post natural disaster Queensland market.