By Herron Todd White
Can you believe we are half way through 2019? Seems like only yesterday it was January and we were attempting to predict what the year would be for property. Since the start of the year there has been much speculation regarding the real estate market: will prices fall more? Will it stabilise or will the market start to recover? What changes to the industry will arise following the election result? We can only wait and see at this stage.
So, what’s been happening within the Newcastle and Hunter Region so far? Interestingly, prices haven’t taken a huge tumble as many were initially wary about at the start of the year. The Newcastle property market hasn’t seen huge falls in prices as some capital cities have. Typically, the property market works in cycles and via our Herron Todd White property clock, we have indicated that our region is now in decline, but this is off the back of solid increases in property prices throughout the past few years. This type of growth cannot be economically sustained and thus the real estate market can be seen as correcting itself.
We have also noted that many buyers in our local area are finding themselves with more choice and much less pressure to make an offer. There are no longer three people in line ready to make an offer on the same property. You will find the well-priced and quality properties in preferable locations are still selling well despite all the talk of declining prices. These quality properties become the standout in these conditions and the gap widens between primary and secondary properties.
We’ve also identified that suburbs which were previously out of the budget of buyers are now becoming more attainable. Previously some buyers who were looking at outer suburbs such as Highfields and Kahibah can now expand their search areas without expanding their price bracket much to include suburbs closer to town such as Adamstown, Kotara and some areas of New Lambton. The typical blue-collar suburbs including Merewether, Cooks Hill and Bar Beach are just as popular as ever (that’s a given), but prices are softening in these suburbs. The more affordable first home buyer suburbs such as Mayfield, Hamilton North, Waratah and some properties in Tighes Hill are also softening, but here the quality properties are constantly selling quicker than others on the market.
Interestingly, there are still many record-breaking sales happening across Newcastle. Take a look at a recent sale in Adamstown Heights. Renovated with the help of a local architectural firm, this large family home sold for $2.15 million in March 2019. The property has five-bedrooms, three-bathrooms and two car spaces with a large backyard and swimming pool.
There has been another sale of a renovated Federation home in the much sought after suburb of Hamilton South. The auction sale has become the suburb’s second highest recorded sale at $2.25 million. The agents originally stated a price guide of $2 million to $2.2 million. This property is well-known in the area for its beautifully restored Federation features and large corner block location, with four bedrooms, three bathrooms, two car spaces and a large swimming pool and outdoor entertaining area.
So where will the property market head from here to the end of 2019? Dare we say it could be similar to our beloved Newcastle Knights who at time of writing this piece have come away with three back-to-back wins after a slow start to the year? Could Newcastle be ready to re-enter the fight and confidently stride forward from current conditions? Only time will tell for our real estate market (especially following the federal election), but it’s looking encouraging for Nathan Brown and our Knights.
Speak with a Newcastle Mortgage Broker today.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.