Multiple economic indicators are pointing to softer housing market conditions Australia wide. The recent RPData Core Logic May home value index confirmed that capital gains trends have slowed with Sydney dwelling values remaining unchanged for the month of May. According to RPData Core Logic head of research, Tim Lawless, the market has lost momentum in our city, primarily due to affordability constraints, tighter credit policies, rising mortgage rates, and a downturn in consumer sentiment. The jury is still out on whether the housing market has peaked.
In my opinion, I do think the Sydney and Melbourne markets are at or near their peak for this growth cycle of 5 years of exceptional growth, but the Central Coast market still has some time to run. The Central Coast remains a very compelling market for an investment or lifestyle change for young families, now that Sydney has become difficult to afford.
I think we will see the pace of growth in property prices slow but not stop. Property prices will keep growing but at a lesser rate per year.
Locally, stock remains in tight supply and whilst buyer numbers have dropped, the number of purchasers still exceeds the stock available. Good quality property is still selling well and we continue to see great sales results.
During the month of May and June our Avoca Beach & Copacabana teams successfully negotiated the sale of 26 properties, including the following:-
125 Avoca Dr, Avoca Beach – an original Avoca Beachfront property situated behind the Norfolk Pines. The sale is the second highest residential sale on the Central Coast this year. The purchasers intend to knock the 4 bedroom home over and build a new home. Sold Off Market to a database buyer for $4,700,000.
12/45 Avoca Dr, Avoca Beach – A spacious 3 bedrooms Green Park apartment flooded with natural light, short walk to the beach and cafes. Updated kitchen with ample storage. Sold for $1,001,116.
181 Cape Three Points Rd, Avoca Beach – 3 bedroom brick home with sun-lit interiors, easy care gardens & alfresco area. Expansive valley views. Sold for $761,000.
37 Branga Ave, Copacabana - Renovated family home with 4 bedrooms all with built ins, three bathrooms, open plan living, entertainers deck & level yard. Sold for $855,000.
12 Ladera Dr, Copacabana - Masterfully designed, luxurious 4 bedroom coastal home. Spacious and light throughout, the home offered the 'wow' factor at every turn with stylish touches and modern finishes. Sold for $1,110,000
With the NSW State Government recently abolishing Stamp Duty for first home buyers on new and existing property purchases up to $650,000 and stamp duty discounts up to $800,000, I feel this will give the entry level of the market a bit of a kick along.
If you are interested in knowing what your home is worth in these changing market conditions, call us today for an obligation free market appraisal.
Kyle Brand (Central Coast Real Estate Agent of the Year - 2017)