[ad_1]
At the same time, some homeowners facing higher mortgage repayment pressures will take advantage of long-term value increases to sell their homes to pay off debt, increasing the number of homes for sale.
loading
She said this meant most areas of NSW and Victoria had above-average listings, after the COVID-19 lockdown saw listings fall by about 50 to 60 per cent from pre-lockdown averages.
Ezzy expects regional property markets to lose some momentum until the Reserve Bank reduces the cash rate.
Most of the 20 regions with the biggest falls in house prices over the past three months were in New South Wales and Victoria, with only one in South Australia. In contrast, parts of Queensland and Western Australia saw house prices rise.
Coffs Harbour recorded the biggest fall in house prices, down 3.8 per cent over three months, while elsewhere in NSW, Orange (-3.1 per cent) and Wagga Wagga (-2.6 per cent) also recorded falls.
The second-biggest fall was in Ballarat, which fell 3.4 per cent over the three months, while other Victorian towns to see falls included Wangaratta (-2.7 per cent), Colac (-2.4 per cent) and Castlemaine (-2.2 per cent).
Ezzy said an increase in listings was one of the reasons for the fall. For example, listings in Coffs Harbour were roughly average, while sales activity was about 8.5 per cent below the same time last year. Ballarat sales were about 5 per cent below average, but listings were almost double the average for the same time last year.
“These buyers don’t have to negotiate as much, they have more choices, more options, and that takes the steam out of the market,” she said.
She also noted that Victorian policies targeting property investors, such as higher land taxes and more protections for tenants, could prompt some investors to look elsewhere.
loading
Ballarat Real Estate general manager Allister Morrison, who also sells properties in other regional centres in Victoria, has noticed a moderation in prices.
“This is partly due to some stocks coming into the market and buyers taking a wait-and-see approach to the market, particularly in terms of interest rates,” he said.
He said some investors were being influenced by rising land taxes or increased compliance requirements for landlords and decided to sell.
But in the past few weeks, he feels buyers have begun to become more confident that interest rates will remain stable and have begun to return to the market to look for affordable options.
“The suburban investor market is definitely coming back into play, with people recognising that regional Victoria is generating pretty good returns because of the rental growth,” he said.
“(They thought) I could find a good investment property in regional Victoria without having to invest a lot of money.”
Further north, McGrath Coves Coast selling agent Shayne Long said not only was there less interest in high-end properties, but more affordable properties, which were seeing more sales, were also being held back by rising interest rates.
“I’m not finding as much interest in the higher-end properties… The interest has really slowed down,” Long said. “With interest rates going up, (buyers) are looking for more affordable homes that won’t impact their debt (levels).”
“So instead of looking for a $1 million house, they’re looking for an $800,000 house to compensate. People’s borrowing capacity has changed because of rising interest rates.”
It also takes some time for sellers to adjust their expectations, Long said.
[ad_2]
Source link
