The end of 2017 brought tales of doom and gloom about a downturn in property prices. Now that we are into the second quarter of 2018, we can ask ourselves, were the predictions accurate?
After a hot Summer and a hot real estate market, a slight cooling is inevitable. We have more stock on the market which is allowing buyers more choice and time. But due to a few key contributing factors, we have a uniquely positive outlook for the Newcastle market.
Continue reading to find out why, unlike our neighbours in Sydney, we believe Newcastle property prices will remain strong over the course of 2018.
Low Interest Rates Signal Perfect Time to Buy
Current low interest rates are a significant factor that will contribute to the resilience of the Newcastle market. On Tuesday, the RBA announced that the interest rate will remain unchanged for the 19th consecutive month. This record all-time-low is good news for buyers as it instils confidence.
Reports indicate that the interest rate isn’t set to change soon either, with RBA governor Philip Lowe making a statement last month suggesting that rates would remain low.
The RBA has kept the interest rate unchanged for a record-breaking 19th consecutive month. Image credit: Dean Lewins/AAP via The Guardian.
Current Market Conditions
After a period of strong price growth in Newcastle, sellers have been invited into the market which has led to a significant increase in stock. Supply and demand factors are in play and buyers have more choice than previous months. It also means sellers have time to present their property in the best possible way to attract a top result while preparing for their own next move.
This weekend, for example, we are showing 12 stunning homes across Newcastle. We think this variety in listings is great because it is piquing the interest of buyers from outside Newcastle, with enquiries coming from all over Australia, and even Internationally.
With an increase in stock on the market, buyers have time and choice when purchasing the home of their dreams.
Investment in the City is Keeping Prices Strong
Lately, you can’t make a trip to downtown Newcastle without hearing the all-too-familiar whines and bangs of construction taking place. Whilst all this construction causes short-term pain, it excites me because it signals hope. We think it is great that so much investment is being poured into Newcastle. We already thought it was the best place in the world, it’s only getting better!
Promised Train Line Updates Will Invite Sydney Buyers to Newcastle
As well as improvements to our city, Newcastle will soon be more accessible to Sydney. In March, it was reported that trains between Sydney and Newcastle could be an hour faster if a business case the federal government has pledged to help pay for pans out.
Currently there is a very small pocket of Novocastrians commuting to Sydney for work. We predict that if the improved train line goes ahead, we will see an influx of Sydney buyers moving to Newcastle to make the most of our idyllic lifestyle whilst still being close enough to Sydney.
What’s in Store for Autumn and Winter?
We can’t believe that the first quarter of 2018 is already over, it has flown by!
We predict things will slow down slightly during Winter, historically our quieter months. Despite this, we think Winter is a great time to sell because experience tells us that buyers are more motivated in the Winter months and leads are of high quality. People don’t want to leave the house to go to open homes if they aren’t serious about buying!
For the remainder of 2018, we think that positive economic conditions in Newcastle will correlate with steady price growth.
We believe price growth will remain steady for the remainder of 2018.
We are looking forward to working with both vendors and buyers to achieve great outcomes for their homes over the remainder of 2018. If you have any questions about the Newcastle market, or buying or selling a home, please give us a call, 4961 6899.
Thank you for reading.