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MARKET CONDITIONS – AUGUST 2008Scott Walkom 19/8/08
The trend of weaker average real estate prices in Newcastle and the Hunter Region since May 2008 is still continuing, as negative economic outcomes creates pessimism in the wider community. Rising interest rates, fuel prices, instability in financial markets and negative end of year superannuation returns have joined forces to reduce consumer confidence. The Hunter Valley Research Foundation June report indicates that the percentage of consumers expecting to purchase a home in the next three months has fallen to 3.4% from a recent high of 6% in 2007 and 11% in 2003 (at the height of the boom).
The expected future interest rate cut (hopefully in September) is breathing life into the local property market with sales volumes showing improvement. Purchaser’s expectation of obtaining reduced purchase prices for quality property is being shown by some cheeky offers being received. This is always a good sign that the market is starting to shift upward.
Our sales have been firmest under $400,000 where we are seeing tenants purchase due to rents increasing by 10 - 20%. Sales over $800,000 to $1.2 M have also been steady and we have two sales over $2M. Sales have predominately been to owner occupiers.
Below average market conditions do affect the whole market and this will lead to some good purchasing opportunities for those who are cashed up and able to invest in the short term.
WELL DONE SONIA, finishing her 35th City to Surf
Congratulations to Sonia Walkom for another milestone, on Sunday August 10 she completed her 35th City to Surf in Sydney. Sonia completed the race with her daughter Jane and two grandchildren. Well done also to Greg Handsaker who also completed the race.
Environmental and Water Saving Tips
Dealing with Neighbourhood Noise - Document sourced from Newcastle City Council
Neighbourhood Noise