News


Property Report - December 2018


One of the key characteristics of the property market, especially in an economy such as ours, is its unpredictability. But if the last few months have taught us anything, it is that people are equally as unpredictable. That is to say, their opinions tend to give way to impulse rather than reason. This year we have seen a Royal Commission into lending practice, a decline in the influence of the auction process, and a well-coordinated media campaign to destabilise public faith in Melbourne’s real estate market. Amidst all of these factors, the public have been cut adrift and left floating in an ocean of misunderstanding. In my job, when I pay attention to the trends, statistics, and the results that I see everyday, I find I am much better informed than if I give way to the half-truth of headlines and the scuttlebutt on the street. With that in mind, let me give you some advice: the property market in our regional north-east is stable. The months of September and October felt slo...

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Property Report - November 2018


  I was speaking to someone the other day who made the off-the-cuff comment that they “should have bought in Kangaroo Ground 5 years ago.” A novel idea, when the median price there hovers around $1.62 mil. It got me thinking, I wonder how many people will regret not buying in the Kinglake Ranges in 5 years? Or rather, how many people will look back on their investment and think, that was a great move. We are conditioned to look to the immediate future, the present, the now, so much so that our political opinions, property choices, and personal decisions often don’t take into account the “known unknowns” of 2, 4, and 6 years in advance. It is a consumer-oriented world in which live, and the consequence of this is that we struggle to think about the big picture. The recent bad press about the property market is a perfect example. The media, by and large, must have a lot of fun with influencing public opinion. These days it is easy to do. We seem to s...

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60 MINUTES: FACT FROM FICTION


If you watched Sunday evening’s 60 Minutes program, you should be alarmed. And not if you are a home owner or a mortgagee, not because your investments are in jeopardy, but because the media is trying to fabricate the truth. The reality of the Australian property market, and more particularly a market I know a lot about—the Melbourne market—is that it is far more complex than an abridged Sunday evening feature will reveal. Every postcode is judged on its own merit. Every property in that postcode is judged on its own merit, and for the past 2 years the media has tried to gain control of the property market for no other purpose than to sensationalise and sell headlines.     Downturn in the property market. That was the headline of Channel 9’s 60 Minutes report. They claimed that the market is set to drop 40% in the next year, and that the current conditions resemble the GFC of 2007-08. “It’s coming”, said one of their motley panel...


Have you started planning for spring?


It has been a strong few months in the local market, with much of the action happening at the negotiation table. It has been a true test of mettle for real estate agents as buyers have registered some reluctance and trepidation. This nervousness is a result of worries in the marketplace, with much of the media reporting a “softening” or “correction” across Melbourne. In response, average days on market has increased as buyers spend more time deliberating over their purchasing decisions, and agents spend more time negotiating and pursuing qualified buyers. With all that said and done, the latter part of Winter has been surprising in its steady, constant stock levels and robust price outcomes. Now more than ever, being priced right, marketed right, and presented right is of upmost importance. These can be difficult times for agents who simply ride on the market peaks (you know what they say about the going getting tough). You will find that agencies which are tri...

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STRONG MARKETS IN REGIONAL VICTORIA


According to a recent REIV (Real Estate Institute of Victoria) research bulletin, the property market is strong and stable in regional Victoria. An auction clearance rate of 71.1% was recorded in July post-financial year, well above the state average of that time. Median house prices have also continued to outperform metropolitan Melbourne and rental vacancy rates are low (meaning very few investment properties are vacant). Although some people are nervous after the Big 4’s decision (following Westpac) to raise interest rates, however slight, the Reserve Bank has assured Australians that they do not intend to change their cash rate, which remains at 1.5% (as at 12th September 2018). We have seen media fearmongers at work in recent days, trying to convince the general public that there are grey clouds on the horizon, but the numbers do not lie. Despite the bad reports and rumours about “corrections”, “bubbles”, and “drops”, our market continues...


The truth from the factory floor.


It has been a very busy month and a half at Integrity Real Estate. Although stock volume was very high at the turn of the financial year June 30, the month of July would determine whether or not sales results would stand up against the barrage of media advertising touting a “market softening”. Without holding you in suspense, the answer is: sales maintained strong. Majority of clearances in the month of July and into August were properties on small acreage in excess of $800k and $900k. This bodes very well for the local market, as it shows that (as predicted) the Kinglake Ranges remains mostly immune to a market relapse that is occurring in suburbs reliant upon the once-almighty Auction. But this comes with a condition. The Reserve Bank of Australia (RBA) recently decided to keep the official cash rate on hold at the record low setting of 1.50%. The RBA determined that global and domestic economies remained positive and were generally remaining buoyant. On a domestic...

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