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The Inside Scoop


Going green for ‘the green’

An unusual study conducted in the U.S. by the Pacific Northwest Research station has suggested that properties with trees planted on or in the surrounding areas somehow boost the value of the property itself!

In the study, it was observed that rental units with trees on the property experienced an increased valuation of $5 monthly, $21 if the street the unit is situated on is lined with trees and as much as a $13,000 sales price hike if trees are found on the next door neighbour’s property (which was suggested by the utility of shade without the hassle of raking leaves!).

The question to ask is whether this merely relates to a desire for shelter from the meteorological elements or other intrinsic factors. Trees by themselves provide a carbon sink, absorbing carbon dioxide from the surrounding air and thus providing a more oxygen rich environment, and their root systems help to keep soil together, preventing erosion from occurring.

Additionally, on a psychological level, it would make sense that a neighbourhood adorned with healthy trees, lush gardens and well kept lawns would not only suggest that the residents love their homes and neighbourhood but that the neighbourhood as a whole is ‘of the good sort’ to live in.

Whatever the reason, and whether this study is to be believed, there would be no harm in adding a bit of flora to your properties, if not for money then for beauty.

Winter sets in

It seems the winter property market has already kicked in, with auction numbers decreasing already. Around 670 auctions are set to take place this weekend, however numbers will drop a fair bit to around 470 next weekend.

Traditionally auction volumes are lower throughout the winter season and it looks as though that will be the case again this year. The clearance rate is likely to remain pretty stable throughout winter, it may notch up a few percent or two, however overall pretty consistent.

Last weekend we recorded our lowest clearance rate for some time, with a similar number of auctions this weekend it will be interesting to see whether this figure improves as we move into the slower winter season.

Going, going, 10,000 real estate agents gone

It seems the real estate industry is a dying trade as it currently sits with more people opting out than opting in. Around one in six real estate agents have given up the profession in the past year, likely due to low sale volumes and falling commissions.

Real estate is becoming harder to sell with poor confidence of the market from buyers. Property overall is taking longer to sell and the number of properties on the market has shot up. A big turn around from the 2009 and early 2010 market where growth was continuous and auction clearances far higher.

A large number of real estate sales people turn over within five years, due to low starting wages and long hours, however this huge shift in the number of estate agents seems more than just high turnover, it looks like a reflection on the current state of the property market.

 

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Secret Agent - Buyers Advocate Melbourne - 292 Rathdowne Street, Carlton North, Melbourne Phone (03) 9018 7122