As many of you will know, Murray, Lyndal and the kids are on their West Australian odyssey currently and not expected back on deck till early next year! They’re all having a fantastic time during this well deserved break and its business as usual at Hinternoosa office as the team continues day to day operations.

As acting Principal in Murray’s absence I’m pleased to observe that whilst the property markets in S/E Qld remain challenging, our August sales figures seem to indicate that spring may produce an increase in sales activity and an underlining strengthening in the market place. It’s particularly pleasing to see a number of sales in excess of a million dollars, with 2 of these transactions negotiated in a multi offer environment. Whilst price was still the major consideration in attracting qualified purchasers and of the 11 properties sold in August most had been in the market for extended periods of time, we are experiencing a reasonable level of demand for those properties considered to represent the best on offer in most sectors of the market. The underlining message here is that whilst the market is experiencing somewhat less that a robust level of demand, the smart money is starting to come back to the property market and buyers seem more confident to commit to those offerings exhibiting excellent value for money.

In contrast to the factors influencing the top end of the market, there are some interesting offerings emerging in the entry level market which I feel offer a window of opportunity, for the $400,000 purchaser which may be short lived. The previous increase in the first homeowner grant created boom conditions in this market sector which has subsequently softened in price with the change in the grant and the corresponding general contraction in the volume of sale.

We currently have a number of listings on small acreage in close proximity to town at prices which I would have said 2 years ago would never occur again. This may well be your last chance to experience the hinterland lifestyle for this modest amount of money! It’s an ill wind that doesn’t deliver some opportunity to someone.

In closing I can confirm that I am loving my time in COOROY and working with the Hinternoosa team. Murray calls each week to discuss the market and what’s happening in the business generally, I am wondering when it would be appropriate to tell him I have changed the lock on his door.

David Crerar
acting principal
hinternoosa.com.au

We find that many potential sellers in the current market are confronted with a number of options with regard to what method of sale should I pursue in order to sell my property, having little knowledge of what the individual performance of the different methods are.

Many potential sellers find themselves attending auctions in their area in order to gain an understanding of whether things are selling and for how much, and then making a direct comparison with their personal selling circumstance. Unfortunately only a small proportion of these offering are selling under the hammer on the day and many people are asking, do Auction’s really work?

At Hinternoosa we feel that it’s a fair question, and as such have conducted an audit of our Auction performance since 1/01/2011, and we are happy to share the facts with you.

We have offered a total of 33 properties to this point in time and the summary is as follows.

Sold prior to Auction: 3

Sold under the hammer: 2

Sold post auction: 13

Properties currently under contract: 3

Properties withdrawn from sale: 1

Available for sale: 11

The summary of these figures place our clearance rate at 66%, if the 3 properties currently under contract proceed to settlement. Further to this should a number of the properties currently available sell our clearance rate will reflect approx 75%, and we are confident we will achieve this outcome.

Auction by themselves are not the answer to all selling situations, but in the hands of a highly skilled sales professionals, are producing very credible results in highly challenging market conditions.

Should you wish to discuss Auction or private treaty sale in more detail please contact us.

Whilst the property markets in S/E QLD remain challenging, our August sales figures seem to indicate that spring may produce an increase in sales activity, and an underlining strengthening in the market place, acting principal of Hinternoosa David Crerar commented.

It is particularly pleasing to see a number of sales in excess of a million dollars, with 2 of these transactions negotiated in a multi offer environment. Whilst price was still the major consideration in attracting qualified purchasers, and of the 11 properties sold in August most had been in the market for extended periods of time, we are experiencing a reasonable level of demand for those properties considered to represent the best on offer in most sectors of the market.

The underlining message here is that whilst the market is experiencing somewhat less than a robust level of demand, the smart money is starting to come back to the property market, and buyers seem more confident to commit to those offerings exhibiting excellent value for money.

2nd half 2011

There’s never been a better time (in my 22 years working in the Noosa hinterland) to get a bargain as the market with price falls for some of the hinterland’s most desirable properties.

Whilst the Noosa hinterland is affected by macro forces like the economic slowdown, tragedies here in Australia & abroad and the economic instability in Europe, we do benefit from a buffer. ie baby boomers continue to retire and seek out an affordable stress free sustainable lifestyle. Another demographic that tends to continue to come to our area in greater numbers is the ‘green changer’, who seeks to live the environmentally friendly lifestyle with a low carbon footprint. Buyers are typically favoring established homes as they obviously represent better value for money. Buyers preferred area appears to be property within a 15 km of Mt Cooroy, further I think sub consciously buyers are opting for real estate with more elevation. Sales volume did decrease as a result of the Global Financial Crisis (GFC) and the extraordinary climatic circumstances here and abroad. Pre GFC we were typically making 15 sales a month, post GFC volume dropped to 7 or 8 a month. The average sales price over the past 90 days is $700k.

However, the future looks bright, over the past 90 days we have written 34 sales and we anticipate the number of sales will slowly increase in the second half of 2011 and into 2012, so the take away message is don’t wait too long before you buy. At Hinternoosa we’re of the belief that the next 6 months will see even more buyers focused on a desire to live the good life outside the workplace and have a chance to do something completely different. Hinterland families are downsizing and investors are returning to the market. Five years ago we could count our annual town house/unit sales on one hand, but times have changed to a point where we sell town houses frequently in Cooroy and Eumundi.

We’ve also seen an increase in enquiry and contracts from purchasers from Victoria and NSW. Their markets are more fully valued and the perception is that their dollar will buy far more in our hinterland. It’s very much a buyer’s market over the next 6 months or so, but much better economically as we head into spring with the $10,000 home builders grant on top of $7000 1st home buyers grant (total $17,000). The strong Aussie dollar has caused ex-pats considering returning home to hesitate until they enjoy a more favorable exchange rate.

It’s our view in the current market that the Auction method prevails over expressions of interest/tender and or private treaty, (exercise caution - not all auctions are the same). The reason being it’s our experience that buyers are looking for a bargain and our hinterland market is currently considered to be a ‘buyers market’.

In our recent experience we’ve been able to achieve a 60% clearance rate in the current market using this methodology which is a great deal better than the state average. We do this by placing a huge emphasis on getting large numbers of buyers through the properties. We then provide the seller with price feedback from every buyer so the seller benefits from a weight of evidence. This allows us to set a reserve that will cause the property to sell under the hammer through spirited bidding and in the absence of that it’s our experience that we typically sell the properties in the 2 or 4 weeks after the Auction. Both print and optimized internet advertising are essential to achieve the sale. On average we are generating over 1000 page views on the net every day.

New land developments are at a standstill as it is impossible (partly because of Council’s new onerous conditions) for land to be developed and priced competitively against existing vacant land currently on the market.

Buyers and sellers are genuinely optimistic and this was clearly demonstrated on a cold Cooroy Wednesday night on June 22 when we had our in-room Auctions. 7 properties were put up before a crowd of 130 or more buyers.

Lot 14 Solar Rd sold went under the hammer for $805,000 – a price significantly above our average sale price. The majority of the other properties also enjoyed spirited bidding, they were subsequently held over and post Auction some of those properties were sold. We anticipate when the dust settles over the ensuing weeks that 60% or more will be sold.

Murray Brown
Principal
Hinternoosa