ACTON Magazine Volume 78 - December 2012 | Page 2

From the desk of the Managing Director WELCOME TO ACTON! Overall it’s been a positive year for the real estate market. The improving trend we noticed in October 2011 continued on through 2012, with sales getting stronger and stronger and some outstanding results recorded. The Spring selling season got off to a great start, with ACTON recording strong results for September and the September quarter. September sales were 80 percent higher than the same month last year, while sales for the quarter were 59 percent higher than the 2011 September quarter. It was the strongest September quarter since 2009, and the highest performing quarter of this year. The strong sales continued into October, with the Group posting the highest monthly result for the year. Coincidentally October 2011 recorded the highest results for 2011 and while that was a strong showing, sales for October 2012 were 34 percent higher. At the time of writing November’s sales are also looking good. We do expect the traditional slow down over the Festive Season, but I feel very positive about the market for 2013. This expectation is based on: • The reduction of stock available over the course of the year. Stock is currently sitting around 11,000, down from nearly 15,000 late last year and just over 14,000 in the March 2012 quarter. • The increase in sales ACTON have seen in 2012. Sales are up significantly on previous years and monthly performances have been strong and consistent across the Group. • Properties priced for the market are selling in a shorter time frame and there are more reports of properties selling within a day or two of listing. • There is less discounting, with the selling price becoming closer to the asking price. • Returning confidence is highlighted by auction activity. Since July ACTON have been listing more auctions and more properties are selling under the hammer or prior to auction day. • • • • There has been a lot of talk about properties under $500,000 selling quickly, which is true, but we are now seeing a recovery at the top end of the market as well. Most pundits are predicting further interest rate cuts. Rates will remain low, increasing affordability and confidence in 2013. We have the nation’s top economy in Western Australia and market confidence continues to grow. There are a host of projects being undertaken at present (such as redevelopment in East Perth, Great Eastern Highway widening, Elizabeth Quay, the Fiona Stanley Hospital plus numerous other developments) that will keep the economy ticking along. We have the strongest population growth in the country and this will continue the demand for housing for both owner-occupied and rentals. ACTON’s expansion continues Since June we have opened three new offices across Perth and in this issue we welcome ACTON Victoria Park (a larger story is featured later in the magazine). We are finishing the year on a high note with another new Region set to open before Christmas. The ACTON Group wishes everyone a joyous and safe Christmas and a prosperous and peaceful New Year. Graeme Baxter Managing Director WWW.ACTON.COM.AU