Market Comment – Monday September 29th 2008

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Monday September 29th

With the crowning of the new premiers of the AFL for this year, we congratulate the Hawthorn Football Club. We also begin the spring real estate season in earnest. The next three weeks will indicate what the stock levels will be like for the rest of the year. I don’t think anyone is too certain what will happen in the markets of the world. Whether the Multi – Billion dollar bailout in the USA will strengthen or weaken our markets. Will there be such a credit squeeze, that we will go back to the times of 20% deposit, or will everything continue on as it did during the 2001 downturn on Wall Street.

When contemplating the price movement in the market, I will always come back to supply and demand. If the selling agents do not increase stock levels then property prices will remain resilient due to the shortage and may well increase. If the selling agents flood the market, then of course there will be a downturn in “average” prices. Good property will still continue to sell well. Melbourne is still the fastest growing capital city, and whilst housing approvals are low and seem to be stagnating, the number of people looking for homes is increasing and this is putting upward pressure on rental accommodation.

Over the next twelve months the key to buying good real estate at a good price will be quality assessment and quality negotiation. Any person contemplating any property purchase within the next twelve months, either to live in or as an investment, will do very well to seek advice in these two crucial areas of property acquisition.

We are running a seminar on property negotiation – a buyers’ perspective and also discussing some of the hotspots around Melbourne that should appreciate well in the coming years. It is on at 6.30pm Wednesday 8th October at Glen Eira Town Hall in Caulfield.

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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