What happened to the Markets in November?

Market Review –

As always, buyer sentiment is largely determined by a combination of local area market conditions and macro economic factors. The Eurozone financial crisis continued to dominate the headlines last week, with the situation becoming grimmer by the day.

 ANZ chief economist Warren Hogan told the Herald the risk is rising that the stress will be transmitted to Australia and the rest of the world. In his opinion, although funding costs are already rising, the Reserve Bank will be able to shield consumers with further interest rate cuts. The chances of a December rate cut are now rising.  

The latest finalised auction results from RP Data show clearance rates remained reasonably consistent with the week before. Melbourne and Adelaide fell slightly to 46% and 38% respectively, while Sydney and Brisbane rose marginally to 52% and 30%. Ray White Blackheath’s Auction clearance rates so far for 2011 are as follows;

Sold under the hammer: 52% – consistent with 1 out of every 2 selling under the hammer.

Sold prior & on the day: 76% – consistent with 3 out of 4 sold in an average of 28 days on the market.

 In local market news, so far we are not seeing any evidence of a slowdown in the lead up to Christmas, open home numbers are strong and with an Auction on the 18th December we plan to keep going full steam ahead until the office closes on the 23rd of December.

We would also like to take this opportunity to wish you and your families a safe and happy Christmas and holiday period. It is a pleasure to service our community and we look forward to a bright 2011.