Let the facts speak for themselves

Spring – supposedly the “Nirvana” of the real estate year – is upon us once again. With temperatures on the rise, flowers blooming and much talk about an impending interest rate decrease, it might feel like the Perth property market is about to perk up. But don’t let emotion mask the facts – and the facts tell us that there is unlikely to be any radical “bounce back” in
the near future.

It is impossible to predict the future of the property market – unfortunately we don’t have a crystal ball! But according to Realmark principal John Percudani, we can use current data mixed with historical evidence to look at probabilities. And the most recent facts and figures tell us that no matter how much we might want to see a strong positive change, it is unlikely to happen this year.

“If you look at the recent REIWA figures, we can see that the volume of residential transactions or sales is down this June quarter (as compared to March quarter 2007) by 25 per cent,” says Mr Percudani. There are currently 17,500 properties for sale in Western Australia. This equates to about 5 months supply of property. In March 2007, we had only 3.5 months of supply.”

“Not only is there a glut of property, but they are taking longer to sell. The average days on market are 74 as compared to 55 days in March last year. This is an increase of 35 per cent. And we already know that this has had an effect on overall median house prices In Perth which are down approximately four per cent.”

Even with the likelihood of an interest rate drop, which has been touted by the Reserve Bank and the media in recent times, Mr Percudani believes it would unrealistic to expect an upswing in 2008.

“It’s not all doom and gloom – this current downturn is part of the overall property market cycle and with any price correction comes buying opportunities and increased affordability,” says Mr Percudani. “But I think it is important to understand the factors that lead to this downturn in order be realistic about any positive change in the property market ‘curve’.”

Mr Percudani points to a number of events that have influenced today’s market. Not only is there a global economic downturn which has created a general sense of unease and caution amongst buyers and investors, but also our major lenders are suffering from a global credit squeeze, forcing interest rates up. Even if the Reserve Bank lowers interest rates, there is no guarantee that this will be passed on by the banks and lenders who are finding it increasingly difficult to borrow money themselves in the global credit market place.

“All I’m suggesting is that it has taken a number of changes in the market to create the current situation,” says Mr Percudani. “So it would be unrealistic to suggest that only one change – such as a decrease in interest rates – will be enough to radically change the property landscape. We cannot expect one factor alone to influence such a major turn around.”

“Agents are intrinsically optimistic – they want the best price for their clients and themselves,” says Mr Percudani. “But advice that is not based on facts can be misleading and unrealistic. And the current facts tell us that a Spring upturn is unlikely. Agents need to be using transparent evidence on which to base their estimates. Otherwise sellers will be living with false hope.

Realmark Homes Come Online

Realmark have launched a new online marketing initiative which provides sellers to showcase their property with a customised website.

Each property specific website will use the actual street address of the property as the web address to ensure easy buyer attraction. Realmark is the first agency in Perth to offer this service to sellers.

Realmark Director John Percudani said the new initiative was just another way Realmark was leading in property marketing.

“The internet plays a very important role in selling homes and theses property websites are taking virtual marketing to another level,” Mr Percudani said.



“Buyers today are very different from those 10 years ago, they want to see and experience the property via their computer first before they make contact with the agent or decide to view a short list of properties that suit their criteria.

“It is for this reason that you need to give buyers the very best first impression of a property.”

Mr Percudani said that like most other industries, real estate had to embrace online marketing in a more proactive manner.

“Just as we have seen the print media move to creating an online presence, it was time for us to do the same for property consumers,” Mr Percudani said.

The websites will be created internally by Realmark’s team of professional web designers.



“The websites are a very affordable seller investment and are therefore suitable for the entire spectrum of properties, Mr Percudani said.

Realmark has been recognised for its excellence in marketing, winning the 2007 REIWA Communication Award.

Innovation Regeneration

When Realmark launched their new brand two months ago, it was more than a cosmetic change of logo. It was a statement to the market place reflecting their values and service, designed to meet the needs of their contemporary clients.

Realmark started nearly 20 years ago as a single office with less than 10employees. Today the business comprises five offices with more than 100 staff. Along the way they have operated independently, as well as part of a franchise. Now they are a stand-alone group again, with innovation as their mantra.

“Perth is a young, fresh, contemporary city with a fast corporate life,” says Realmark principal Mr John Percudani. “Realmark differentiates itself from its competitors by being first to market with new ideas and fresh concepts. That’s why we are a recognised innovator and communicator in the marketplace.”

This is supported by the team’s outstanding success at the recent 2007 Real Estate Institute of WA Excellence awards where they collected the prizes for both Innovation and Communication. Launching their new brand is another way of promoting their unique marketing approach, which embraces full utilization of the web through their e-marketing campaigns and other methods.

“We provide buyers with information about our properties which is rich in information, including quality photography and virtual on-line experiences,” say Mr Percudani. “This gives our clients an advantage because buyers arrive at property inspections with all the facts. They are ready to make informed buying decisions. Our properties sell quicker and both sellers and buyers are satisfied.”

Mr Percudani and his team researched what leading marketers do across the world to promote and deliver products to their client base.

“A lot of agencies go through cosmetic brand changes,” says Mr Percudani. “But we have made real changes – to systems, tools and marketing methods. And our clients benefit from this ongoing improvement.”