Market Insights- January/ February/ March 2010

February 15, 2010

What an amazing end to 2009! It appears that for the time being buoyancy and in some cases bullish optimism exists with many buyers, creating a mini boom in some price categories. Properties in Mount Pleasant, below $1 million, have been snapped up and are selling quickly, often close to full price. We think that in many cases, within this category, we have seen an upwards market correction of 10-15% in the space of 3 short months. The same applies in Applecross, in properties in the mid to high $1M range. Lower priced properties in Ardross and surrounds are also changing hands in rapid fashion.

Buyers, as always, are looking for value. In this market the location is very important. Homes in excellent condition, presented to a high standard and/or in superb locations will attract the most interest and usually sell quickest.

Several top end properties have changed hands in this period, indicating strong demand for the premium end of the market. All of this is caused by a general lack of stock and the subsequent strong demand causes upward pressure on prices.

Generally we are finding that Buyers have more confidence as they have seen consistency of pricing, albeit at a higher level than last year and sellers have a renewed sense of perspective having seen sufficient recent sales. As a result the market has established a new equilibrium, based on actual sales evidence, rather than the varied and often erroneous data that existed in the first half of 2009.

Evolution Realty has finished the year strongly, registering many sales in December and has started the year with an amazing record number of appraisals. Our interpretation of the number of appraisals is that many potential sellers are aspirational buyers, taking stock of the value of their current homes as they consider upgrading. We find that this is often the case in the New Year. Many new listings have hit the market for Evolution Realty and we expect strong selling months in February and March 2010.

On a happy note, we recently celebrated out first Anniversary with a bang, and are well primed to continue the massive success enjoyed in 2009. We look forward to meeting you, at our website, at our office at 15 Kearns Crescent Applecross or at many of the homes open that we conduct every weekend though the City of Melville and surrounds.