As the financial year comes to an end, it is fair to say that the announcements from the Federal Government have had an impact on the sentiment of the market at the present. Certainly, confidence has been shaken with what appears to be an effort by the Government to hit one of the most productive sectors of our strong Western Australian economies.
Most of us would want a speedy resolution to the discussions between Government and the mining sector. History shows these things always settle down, and before too long it should be business as usual.
For the time being, interest rates are on hold and this is a good thing.
On a happy note, we are celebrating a strong first 6 months of 2010, where Evolution is clear market leaders in numbers of sales made in Applecross and Mount Pleasant having some 20 sales or 21% of the market. This reflects the confidence sellers have in our strategies, our brand and our team. It also proves that our marketing, pricing and ability to find and close sales are strong.
We see a lot of oversupply at present and some overly optimistic aspirational sellers. Our experience is that these properties will not sell, and will in fact create a false illusionary market, making it possible for those sellers that base their sales price expectations on more factual and up to date data, have an competitive advantage in the market place as buyers prefer the correctly priced properties over the others.
Sellers need to consider, that at whatever price they sell in this market, as long as they buy in the same market, changeover is always about the same.
We see some further caution ahead, and encourage sellers to be realistic with expectations, and to work with all genuine offers to try to make the most of the relative shortage of buyer demand in some categories.
Less expensive properties generally continue to attract huge interest and demand.