Coming off the back of a prosperous Easter weekend, new properties in the region coming onto the market, and new buyers commencing their search, we’re starting to see shoots of a recovering market. CoreLogic data is showing home price growth in the March quarter across a range of Sydney suburbs and a trend in regional markets with lower median home values experiencing a rebound. So is this a good time to buy or sell?
What will happen with property in the Gloucester region?
It will come as no surprise to anyone who’s been watching property prices across Australia that capital cities fell ‒ admittedly, off an almost stratospheric rise in prices over the two years. What was more interesting to us is that price growth was so strong in tree-change regions. After the initial rush from capital cities to sea-change locations and properties became less affordable, many buyers sought value in inland areas. CoreLogic identified that the strongest-performing regional markets were not in and around major inland cities but in more rural areas. This bodes well for anyone looking to sell in the Gloucester region.
Many homeowners or first-home buyers feel a measure of uncertainty; what will happen over the next six months, 12 months, five years? My advice is if you’re buying quality properties, you can’t go wrong as long as you have medium- to long-term goals in mind.
In the Gloucester region, we saw many city folks (like me!) take advantage of high capital city home prices to begin a new life in the country. This migration pattern continues, although not at the same rate as for 2020 to early 2022.
As most of us managed to save over the pandemic period, many of us have cash to invest. It’s doing no good sitting in a bank account with minimum interest. I believe it’s a good time now – before property values rebound – to stick some of that cash into a property, whether it’s for your home or you want to earn an income from an investment property.
What is the opportunity for investment properties?
Regarding investment properties; the current scarcity of rental properties Australia-wide means rents are rising from their lows of 2021.
As a general rule, property assets double in value every eight to ten years. Would you rather be earning a pittance in your term deposit or getting a better return from your investment property?
While prices in regional NSW areas have fallen by only about 1.4% in the three months to the end of March this year, I don’t expect to see further falls as the real estate cycle corrects and prices plateau, after which I expect to see growth.
Given the way our dollar is performing against the US dollar (at the time of writing, 68c), you can see how the Australian property market, backed by a strong banking system and stable government, will be increasingly attractive to overseas buyers.
And with more people moving into the region, we will need more service providers such as doctors, teachers, vets, and nurses. All of these people need somewhere to live and work. Many will choose to rent first.
What is the opportunity for sellers?
Whatever the market cycle, if you’re selling and buying in the same market, you won’t lose. And a quality marketing and sales campaign will deliver you the highest price possible in that market.
As fewer sellers list their homes, your property right now will garner more competition. In capital cities, auction clearance rates are at about 67%. And if you choose to sell and buy in winter, you can be assured of even more competition for your property.
Need advice on selling your Gloucester region property?
As a proud local, I’m here to guide you through the process of selling your home. I specialise in lifestyle, rural and residential properties. I’ve done it myself and helped many families over my career. So give me a call; I’m here to help.
