So home owners consider trading down to slightly more affordable properties where the monthly mortgage repayments are not as high,she said.
“When it comes to tougher times or when there’s a higher interest rate it’s always the top end of the market that suffers first,that gets hit first,because it can be quite a jump in terms of deposit and loan repayments.”
She added that buyers in regional NSW are also chasing infrastructure,convenience and lifestyle,and looking for areas with good transport. Largely absent from the list of deep price falls were commuter-belt areas where sea-changers can work from home but travel to their Sydney office a couple of days a week.
While prices fell most in Coolah,between Dubbo and Tamworth,it remains affordable by Sydney standards.
Shelley Piper,principal at Piper Real Estate Coolah,has noticed a shift in the market and has seen higher-end homes taking longer to sell than entry-level properties.
Loading
“I would say the market is slower but properties are still selling,” she said. “It’s a case-by-case basis,a property sold in a matter of days,which is a bit unheard of.
“There’s a big gap in values between the top-end properties and the bottom. Properties on the higher end,around $590,000,take longer than those on the lower end,around $160,000.”
She said buyers are largely people moving to the area and finding it very affordable.
In Tocumwal,on the border with Victoria,Rob Crow&Co Real Estate selling agent Peter Taylor has noticed a similar trend.
“There’s softness at the top of the market[over $600,000],but the lower-end properties[under $500,000] are quite steady,” he said.
“We typically have two new listings a week and on average they could take 30 to 60 days to sell.”
He said less than 10 per cent to 15 per cent of their buyers are Sydneysiders and Queenslanders moving to the area.
“It’s a bit of a forgotten area of town for Sydneysiders,” he said.
Loading
In Gundagai,Ray White Tumut’s Shaun Ryan said higher interest rates have prompted some owners to sell up.
“There’s still a demand for properties but interest rates have forced people to sell. We’ve found people are offloading their investment properties,” he said.
“I would say there are far more properties than buyers but sales are OK. Properties are taking far longer to sell.”
He said most homes in the area are selling for about $400,000 to $600,000,but acreages can fetch $1 million or more.
“There are a lot of buyers from the Camden and Picton area as they’re seeking that rural lifestyle. We’re also seeing buyers from the South Coast and Wollongong.”