Only in the darkness can you see the stars
Hi Guys, it is Dean OBrien from OBrien Real Estate with another edition of the Property News for 2020 where real estate information is on the house.
It’s R U OK day this week, it’s actually on Thursday, September 10. If 2020 has taught us anything, it’s the value of having genuine conversations with people who are struggling. There is no doubt people are be feeling down, through connection we gain strength ourselves. During Covid-19, I have made it a mission to make daily calls to my clients, my friends, my colleagues, it’s the simple things that matter like hearing a familiar voice or a different voice to your own that helps and it’s great vitamin C, vitamin connection. Here are two quotes I have thinking about this week. “Remember sometimes not getting what you want is a wonderful stroke of luck” from the Dalai Lama and “Only in the darkness can you see the stars” from Martin Luther King Jr.
Onto the good news this week, we have beaten the predictions, the Reserve bank was predicting a 10% drop in Australia’s GDP growth this quarter, what in fact happened was the economy contracted by 7% and although our worst result since 1945 the result fairs the best out of most of the developed countries across the globe with the average drop for developed countries being 11% with the worst result for a developed nation being the UK, they experienced a drop of 20.4%.
If you have looked at property listings online lately you would see very little in the way of new sales offerings. You will see from the graph displayed that new listings for the week are down 76% for Melbourne. What does this mean for the current sellers in the market? It means less competition; we are receiving good inquiry from buyers and although our selling methods are virtual, we are experiencing some success for particular properties that can be virtually inspected with the assistance from our vendors and tenants. We are holding virtual appraisal consultations and providing advice to our clients on the options available to them to either sell now or how they can be prepared to sell day one out of lock-down. As it stands listings are down 24.4% for the year but the long term historical listing trend is down around the 30% to 35% mark and that presents a greater opportunity for sellers due to the lesser selling competition.
Reviewing the sales across the state for the week, according to CoreLogic there were 24 auction results this week whereas last year we had 765 and from a private sale perspective we had 877 private sales. Our combined average weekly sales for the entire state ranges between 1400 and 1500 sales, so we are down considerably .
The sad side of these numbers is that shelter is essential to people and our current restrictions are causing people great difficulty in securing shelter. The other side of the coin is the effect that the limited real estate transactions is having on stamp duty revenue for the Victorian State Government, Stamp Duty accounts for 42% of the state’s revenue so the financials for the Victorian Government would be affected to the tune of billions at the moment.
Here are the main economic headlines for the week:
- Council approvals to build new homes rose by 12 per cent in July.
- International trade in the June quarter was in surplus by a record $17.7 billion
- Retail trade rose by 3.2 per cent in July to be up 12 per cent on the year.
- The US jobless rate fell from 10.2 per cent to 8.4 per cent in August with 1.371 million jobs created
- According to ANZ job advertisements, the number of Aussie job advertisements lifted for a fourth successive month in August.
- And in August, 60,986 new vehicles were sold – the weakest in 23 years.
That’s all for this week, I’m Dean OBrien and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.