There is a lot of energy right now in North Coast real estate. Buyers have made a solid return to the market, buoyed in part by the plateauing of interest rates. Buyers are less concerned about the potential for future rate rises and have a better handle on their capacity to meet loan repayments, which is generating a lot of positivity around the traps.
Are we done with interest rate rises? We certainly think so, and we would argue that if anything, there’s a decent chance they could come down in the near future.
Armed with optimism, we are seeing a steady and growing stream of people at open houses. And sellers are coming to the party by being more realistic about what their properties are worth in the current market. The outrageous prices being achieved during covid times are now largely consigned to history with some rare exceptions.
Stock volumes are up on twelve months ago and are continuing to show an upward trajectory, and there’s a genuine feeling that the traditional Spring market has well and truly arrived.
Buyer demand is strong, with a mix of homeowners as well as investors making their presence felt at open houses and auctions.
Prices remain steady but given demand there is a strong likelihood of price rises in the not-too-distant future.
Properties are selling faster than a few months ago, with days on the market averaging between three and five weeks.
Where is the market heading? While Sydney buyers are not featuring too heavily in the present market, we do expect to see this migration pathway open up again in the near future as Sydney’s population continues to boom and the Northern Rivers experiences the flow on effect of migration.
An important reflection on the current market is the absence of the much referenced ‘mortgage cliff’. The mortgage cliff refers to the expiry of cheap, fixed rate home loans offered during the covid era, when the RBA reduced the cash rate to an ultra-low 0.1 per cent. Perhaps other regions have experienced their own mortgage cliffs, but we have not experienced it here. You could speculate that people have shown excellent anticipation skills in our region and have gotten ahead of the curve? Whatever the reason, this is good news all around.
While prices have declined a little here, and the current interest rate of 4.1 per cent is a far cry from the pandemic era, the market remains steady and there is cause for optimism. The Northern Rivers property market remains resilient!
Read more in my Spring newsletter . . .