The exponential growth in Newcastle’s property market is levelling out after rapid price increases over the last two years, says local broker Brenden Lowbridge (pictured).
The director of Newcastle brokerage Money Links said the market was becoming more balanced between buyers and sellers.
“We have seen a 40% increase in stock hitting the market now compared to this time last year,” Lowbridge said. “From an auction perspective we are seeing an average of two registered bidders compared to 9.3 bidders 12 months ago.”
Lowbridge said buyers from NSW’s second largest city had more choice and options when it came to bargaining power and vendors should be pricing their homes in line with the market.
“The market has moved in such a short amount of time. We have seen crazy growth due to lack of supply and lots of people competing for properties,” he said.
“Now there is more choice for buyers and the demand has decreased, resulting in less stress and pressure for buyers at the moment.”
Lowbridge said first home buyers were now looking at townhouses and units as a potential option compared to a traditional house.
“We are finding first home buyers trying to stick to the $650,000 to $700,000 price cap are getting pushed out of the CBD and into the suburbs and Lake Macquarie,” he said.
Lowbridge was working with a large volume of refinance applications as people looked to move to a lower variable rate to act as a buffer if interest rates move this year.
“We are currently working with slightly more investors than owner-occupiers looking to buy at the moment,” he said. “First home buyers have dropped a little as the banks we work with for the First Home Guarantee Scheme have filled their allocated places.”
Lowbridge said real estate agents he worked closely with were saying people from rural NSW areas such as Dubbo, Orange, and Armidale were opting for a sea change and moving towards the east coast.
“These people are looking for an apartment-style property to purchase for their children to live in whilst studying at one of our university campuses,” he said. “After they graduate, we find they choose to move in ahead of retirement.”
Lowbridge forecasted a balanced market continuing in Newcastle where buyers would have a choice of properties and more time to get their finance in place, making for a less stressful purchasing experience.
“Local buyers would be used to seeing records breaking and now we are shifting to a market where a vendor might need to adjust their expectations,” he said. “It is important to take expert advice from good agents and meet the market to benefit from a better buying experience.”
The Money Links team prides itself on its expertise regarding the First Home Guarantee Scheme and looked forward to offering further spots to clients after the next round was released later this year.
“We also look forward to helping new and existing clients find great investment opportunities through our experienced brokers and investors who understand the Newcastle property market,” he noted. “We want to be at the forefront of their mind when making a property decision in Newcastle.”
