The old real estate rule that says ‘spring is a good time to sell’ has some added zing this season, with regional house values rising on the back of strong interest from city buyers.
People have started turning their back on the crazy prices of capital city real estate, fuelling an increase in interest and higher prices across regional markets.
The latest report from real estate analytics firm, CoreLogic confirms the trend.
CoreLogic Research Analyst, Cameron Kusher says the strength comes from buyers being priced out of the Sydney market and looking to the regions.
“Our latest data points to an increase of value growth in regional markets,” Mr Kusher says.
And of the 50 council areas that have recorded the greatest annual increase in the value of sales, only four of the 50 areas listed are located in capital cities.
Across Australia the average growth in house values sits at 6.1%.
“Buyers now appear to be looking to adjacent regions,” Mr Kusher says.
It’s a situation that rings true for Fisk & Nagle agents in southeast NSW.
For example, in Bega and Merimbula/Tura Beach, CoreLogic data shows a 37% increase in the number of sales during the last 12 months compared with the previous year.
In Cooma, sales have increased by 11.4% in the past 12 months compared with the previous year.
When you compare those increases with the national regional average of 5.3%, the interest and potential in this region really jumps out at you.
Our proximity to Canberra is part of the interest, but so too is liveability – the environment, the safe streets, the bigger backyards, the range of educational choices, new health services, the arts and culture.
Cameron Kusher from CoreLogic, suggests there is something else at play as well.
He says home owners in the city have seen a substantial rise in housing equity over recent years.
“Subsequently we are seeing some evidence that these buyers are starting to look for holiday and investment properties in regional markets,” Mr Kusher says.
So the sunshine and burst of energy that naturally comes with spring real estate now comes with cashed up city buyers.
Considering the median price of a home in Sydney is just over $1 million, city sellers look to south east NSW and all sorts of possibilities present themselves.
To connect with that potential, Fisk & Nagle’s experienced sales consultants are just a phone call away.
*Resources used: CoreLogic, Knight Frank Australian Residential Review July 2016, Domain – Fairfax Media