Although Sydney’s property prices are generally in decline, the Central Coast appears to be on an even keel. Today we are going to profile Terrigal as an example.
As you can see on the table below, the number of house sales in #Terrigal has declined significantly from the frenzied days of 2015. This is an important number that many people overlook. However, the question remains, is this a lack of supply or a lack of demand? I suspect it is both.
As you can see below, prices have continued to grow at 6.49% for the 12 months to June 2018. This suggests that demand may have dropped, but it is matched by a slightly bigger drop in supply. The Spring/Summer market will be interesting.
One solid reason that demand has dropped is that a large % of the booming market was fueled by investors. Bank policy changes, increased investor borrowing costs and declining rental yields have seen that part of the market reduce significantly over the last 18 months.
In many parts of the Coast, this drop in investor demand has been offset by an increase in 1st Home Buyer demand (due to the stamp duty incentive), however, Terrigal’s median is well above the Governments incentive cut off, meaning that this incentive has had little impact. Please click the following link if you would like to see what the 1st home buyer savings can be. This is a simple to use calculator on the NSW Government website. https://www.revenue.nsw.gov.au/taxes/transfer .
Property owners in Terrigal may be concerned about the slowing market, however, it is a good exercise to see how far the market has come over the last 5 years (see below).
Whether you are buying or selling in the Terrigal market, I would be happy to share my local experience. Please feel free to shoot me an email firstname.lastname@example.org or give me a call on 0414255530. Michael Daniels.