Are Big City Booms Driving up Local Property Prices?
Nigel Ayling | 3rd November, 2015
While the Cooma and Monaro real estate market might not be booming like Sydney, Melbourne or Canberra, the region is certainly starting to feel the radiant heat from the hottest cities on the Australian real estate map. Locally, we might not have the volume of buyers or the same frenzied auctions but there is a case to be made for price increases in the area.
Days on Market (DOM) is one of the leading real estate indicators for supply and demand. The DOM for properties in Cooma is sitting at 260. As selling times get shorter, they typically coincide with rising price. Longer selling times generally see less upward price pressure.
The knock on effect of buyers being priced out of their preferred locations has also seen a gentle trickle down into regional markets and an upward push on prices. Retirees, who are priced out of markets closer to Sydney or Melbourne and even Canberra, are now looking for relative bargains further afield. Families and first time buyers unable to get onto the city property ladder are looking for cheaper housing in the regions.
A heady combination of strong demand generated by new arrivals, infrastructure projects creating new employment opportunities and the drying up of cheaper investment/first home buyer properties is leading to a classic supply and demand imbalance. For buyers the message is clear, get in before prices go up.
What about sellers? Logic suggests that you might want to wait it out and see if you can get more for your home. But never forget that while your house is on the increase so is the price of your prospective new home. You’ll also have more to pay in surcharges, taxes and fees to make the move. The clear message is the same as that for buyers. List your property now so you can afford to make your next move.
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