Market Comment – Monday April 28th 2008

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 Total Auctions 358
   Passed In 116
   Passed in after Vendor’s Bid 83
   Sold Before Auction 49
   Sold at Auction 187
   Sold after Auction 6
Clearance Rate 68%
 Total Private Sales 451

The long weekend brought us another quiet weekend in the property market. With only 358 auctions on the weekend, the 68% clearance rate doesn’t mean all that much. But going forward we have now finished with all the long weekends, Easter & school holidays until later in the year, and we can see some good clear periods that Real Estate Agents like so much to market property in. There will be many people feeling the banks interest increases as well as those from the Reserve Bank.

Investors are moving back in to the market place very strongly, with good solid properties on good land located in solid positions, surrounded by infrastructure such as parks, schools, public transport and cafes are selling extremely well. Investors also have other ways to fund investment properties with their super funds.

Over the coming months we will see how much the US led credit crunch will lead our property market. In my opinion it will not be that much. We are still in the worst situation for accessible rental properties that we have seen in recent memory. Unemployment is still very low and most people have made very good equity in their properties over the past 3 years. We should also mention there has been no slow down of people moving into Melbourne. We still have that little problem of one million people expected here 10 years earlier than planned.

When looking at property investment, short term is 5 years, medium term is 10 years and long term is longer than 10 years. With this many people needing accommodation in the best city in the world to live, whatever short term movements in property prices occur, they will be short lived.

Ian James

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.

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