The month in review: Newcastle

By Herron Todd White
June, 2009

The first home buyers market in Newcastle has firmed over the last 6 months with a high volume of sales being recorded. A significant number of these vendors however are not then trading up into the next price bracket, being $350,000 to $500,000, with a reduced number of sales being recorded.

Houses that fall into this mid price bracket are located in fringe inner city & middle ring suburbs such as Hamilton, Adamstown, Lambton with their small/medium sized, 1930/50’s style, 3 bedroom, timber or brick houses or outer suburbs such as Cameron Park or Fletcher with their large, modern, 4 bedroom, brick houses.

These mid priced houses have not attracted the same level of interest as the lower priced houses (largely because they are generally outside the first home buyers price bracket) as purchasers remain cautious in these times of unknown job security (Newcastle should have a reasonably robust employment sector as demand for thermal coal remains strong and much of Newcastle’s employment benefits from this).

While prices have yet to weaken, as the upper end of the market has, we have seen sales periods generally extend out to 3 to 6 months.
The most interesting stage however will be to see what effect the removal of the first home owners grant has on the market, most probably if we see the lower end of the market weaken then we may see the mid price bracket also weaken.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2008 Smartline Home Loans P/L. ABN 38 085 370 270