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The Future of Print vs Online in Real Estate

GOOD QUALITY RENTALS IN DEMAND- Internet campaign only.

A happy story is that we are finding a real surge for demand for goods rentals. Last week we let quickly in a matter of days, 4 quality rentals for full price and some above asking price, as tenants struggle to find good properties to rent.

We are finding success with an internet only campaign, quality photography (With professionals and good ad copy as well, as for all residential sales) and this does beg the question, and in due course why we cannot eventually do without or at elast scale down print media for residential real estate marketing.

With the costs of print media being so high and many buyers claim to be focusing mainly on the internet, what is the future of the big newspapers in Real Estate?

The eventual phasing out of print is probably going to happen, what do others think?

PLAN B- The Market

For any properties that have been on the market a fair time (More than 60-90 days) if it wise to re-examine the assumptions that were made in setting of the right price when the property was listed.

A success mindset known as ZERO BASED THINKING is a very helpful method I have found over the years.

Put simply, using the benefit of hindsight “knowing what I now know”, what would I do if I could do it over again? Any price assessment, is always based on what we know at the time, and is of course very subjective.

Given that the market has changed, (Perhaps softening as much as 5-10% in 2011 alone), many owners probably should have a PLAN B.


This would be based on the following;

1)    Do I actually want to sell/ move? How strong is my own motivation to move in light of the current market?

2)    Does the new market value mean I can buy cheaper?

3)    Do I want to rent out my property?

4)    Do I want to take the property off the market and try again later (NOTE: This could be anywhere from 1-3 years, no one knows).

5)    Do I think a more energetic, fresh approach with a different agent is the right medicine?

 Time for a PLAN B?

Market Segment and absorption rate

An often unheralded statistic, is that of market segment, and hence a term called absorbtion rate, the number of sales per market segment for a particular timeframe.

This is the updated market segment by price category. For those into this sort of stuff, interesting reading. Good for discussions with your owners. :)

Applecross and Mount Pleasant Sales per price segment 2011

APPLECROSS

MOUNT PLEASANT

Market segment

No. of sales

Ave days on market

Market segment

No. of sales

Ave days on market

a. Less than $500,000

8

119

a. Less than $500,000

1

131

b. $500,000 to < $1M

12

59

b. $500,000 to < $1M

21

157

c. $1M to < $1.5M

5

121

c. $1M to < $1.5M

14

120

d. $1.5M to < $2M

8

124

d. $1.5M to < $2M

4

169

e. $2M to < $2.5M

4

93

e. $2M to < $2.5M

1

112

f. $2.5M to < $3M

NO SALES

NA

f. $2.5M to < $3M

4

138

g. $3M to < $4M

3

109

g. $3M to < $4M

NO SALES

NA

h. $4M to < $5M

NO SALES

NA

h. $4M to < $5M

NO SALES

NA

i. $5M plus

2

82

i. $5M plus

NO SALES

NA

TOTALS

42

121

TOTALS

45

142

 

MARKET SNAPSHOT End April 2011

As we approach the end of April 2011, the market remains constipated in Applecross and Mount Pleasant.

Existing FOR SALE MARKET

1)    Applecross    

  • 161 properties for sale
  • 170.1 average days on market (to not sell)
  • $2,189,175 ave. asking price

2)    Mount Pleasant        

  • 79 properties for sale
  • 146 average days on market (to not sell)
  • $1,426,073 ave. asking price

2011 SOLDS

1)    Applecross              

  • 43 sales   
  • Value $36,898,000
  • Average sale $1,419,154
  • 121 average days on market to sell

2)    Mount Pleasant        

  • 46 sales   
  • Value $30,601,000
  • Average sale $1,176,962
  • 142 average days on market to sell


SUMMARY- At the risk of sounding like a broken record, price right, choose a pro-active agent, market well, be pragmatic and look at all offers on merit. If you don't need to sell, DON'T.

Thanks and see you in the market place....IB (ed)

ANNOUNCING EVOLUTION TV

Today we launched our own TV Show. http://www.evolutionrealty.com.au/

This will be a regular feature and we are really excited about offering you up to the minute information and news.

Please have a look and tell me what you think?

  • Do you have a request for a story?
  • Would you like to be interviewed?
  • Do you have a perspective on living in the City of Melville?

Let me know, and it will be our pleasure to make the Evolution TV Show a resource that you can use.

Thank you……..IB (Ed) 

POWDER ROOMS

Evolution has led the way again, with a simple user friendly function, powder room icons. (As far as we know the first agent to do this in the area).

Often buyers want to know how many powder rooms, as the number of bathrooms is not the whole story. Many homes today have 1-4 powder rooms in the market we serve. Have a look for yourself. http://www.evolutionrealty.com.au/search.aspx?st=fs BUYERS, we hope you like this feature. Please comment and tell us what you think.

D.O.M OFF THE SCALE

Days on market off the scale

One often unheralded piece of interesting data, is the days on market of the remaining or unsold stock. The Real Estate Institutes talk about days on market as 69 or whatever it is, that is not really true.

That only measures the days that a collection of listings takes to sell with the agent that has the listing.

Example: Let’s say that one of the properties in Applecross that has been on the market 717 days (That’s right nearly 2 years) changes agents and sells first day with ABCD Realty for example, REIWA shows that as an official stat. of days on market 1 day. The real figure is 718 days. So actually sales figures are false, as many properties in this market sell with a second agent, and so therefore the total time on the market with the first agent is wiped off. (Convenient as it makes many sellers, property owners and even agents have a false sense of what the market is really doing)

LOOK AT THESE STATS ( as at today)

1)      APPLECROSS: ALL ON THE MARKET STOCK

a.      158 plus properties

b.      170.1 days on market

c.       Average price of market $2,111,055

d.      Total sales 2010 Applecross 99

e.      Therefore there is more than 18 months stock on market

MY ADVICE

1)      BUYERS: If you are cash or pre-approved then you will buy well. If you make a reasonable offer, rather than a silly or insulting one, you can expect to buy very well. Be prepared to allow the seller time to come to terms with your offer as in many cases the owners will be expecting more.

2)      SELLERS: Be pragmatic. Look at all offers on merit. If you get cash offers close to what you want, ignore them at your own risk, there may be no other offers and certainly there may not be any better by waiting.

3)      ASPIRATIONAL SELLERS: It is simple, unless you want to or need to sell within 90 days, in this market, then don’t. It is the wrong market to be cute, or be testing the market.

THE FUTURE

Will the market improve? No doubt, but the big question is when? No one knows. It could be 6 months, a year, 2 years. The talk around is that the medium term is probably more tough times, flat at best. Great time to buy, jump in now, sellers, take the money and move on, aspirational sellers, do it now if you are happy to accept the market is what it is, and you will make it up on the one you buy and on the next cycle.

Thank you and see you in the market place..IB (Ed)

Announcing Evolution TV

Coming soon...Watch this space.

As Evolution continues to lead the way, we are about to launch our own TV Show, with monthly market updates, suburb profiles, helpful buyer and seller tips, as well as general property information, interviews, and some property showcase previews.

We believe that this will be a first in the local property market, and a valuable resource for the public, buyers and sellers alike. Watch this space for exciting developments.

Leading the way with technology

With the advent of video on You Tube and various other media, it is inevitable Real Estate will have to join the revolution.

I am proud to announce Evolution Realty’s first “video” promotion of 2 Conon Road Applecross. http://www.evolutionrealty.com.au/property.aspx?pid=249710&st=fs 
Please enjoy, and tell me what you think. (Click on the link titled "Movie").   Thanks IB

A Stellar February

The team at Evolution had a cracking February ranking number one in the State for sales volume (soruce REIWA) and with 3 of our 4 sales people made the top 20 (2 in top 10) for sales volume as well.

At the end of February 2011, Evolution has 25% market share in Applecross, Ardross and Mount Pleasant (Sales made) wrote 19 offers, sold 18 properties worth $28M.

We conducted 42 home opens, had a clearance rate of 166%, an average days on market of 49 days, and conducted 238 new inspections, and 32 new appraisals.

Well done team, a stellar month.

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