Most people would be aware that house prices on the peninsula have been booming for the last 5 or 6 years. The table below shows the growth in the median house price for Umina Beach. If you purchased a property in 2012/2013, you are going to like this data.
Double-digit percentage growth over 5 consecutive years is extremely rare. The compounding effect is very powerful. The next table shows the actual median price growth since January 2014. Umina has enjoyed over $300,000 in capital growth over 4 years.
With each year of growth, the odds of another growth year diminish. The chart below shows that the party may have ended. The good news is that property prices have plateaued rather than dropped.
One indicator that prices may begin to slide is a drop off in sales activity, however, you will note that sales have not dropped below the long-term average. Whilst investor demand may have dropped, this may be offset by First Home Buyer demand that has increased with Govt Stamp Duty Concessions.
Many property owners are now sitting on a lot more equity than they realise. If you would like a computer generated valuation using the system that Real Estate Agents use, please shoot me an email on firstname.lastname@example.org or give me a call on 0414255530.