Newcastle’s booming property market is testing buyers in different ways.
The latest market update from property analysts CoreLogic revealed Newcastle and Lake Macquarie’s median house price hit $882,000 in January, a rise of $300,000 since October 2020.
The Hunter Valley is experiencing an even faster growth rate, adding $200,000 to its median house price since Feburary.
Avery Property principal Paul Avery said the market was particularly tough on first home buyers, who may find medium-density properties to be their only entry point.
But it’s not just first home buyers who are up against it to buy property.
A young family from Sydney recently felt the heat of a competitive market after deciding to move closer to family in Fingal Bay.
Jason and wife Samantha missed out on a succession of houses in Medowie before securing their new home with the help of Chad Dunn Property Buyers.
“We’ve gone to probably five different properties at Medowie and we’ve lost out at auction, [been] out of our price range … many different scenarios,” Jason said.
“But you persevere and we were lucky to get what we wanted in the end.
“Without our buyer’s agent we probably wouldn’t have even seen the property because it wasn’t listed.”
Medowie has boomed in recent times, recording 36 of its 42 $1 million sales in the past 13 months.
House prices in the burgeoning town grew at twice the Port Stephens average in the year to October, with Curtis and Blair’s Jane Blair reporting that the baseline price for entry-level properties had risen from $450,000 to $600,000 in about six months.
Jason said persistence and willingness to compromise had been essential to helping his family secure their new home.
“You sort of have that in mind when you go for a property – you can’t get too emotional because chances are you’re probably not going to get it in this market,” he said.
“For our situation, like many others, you have a price range and month by month, week by week, you see houses increase in price and going over that price range.
“It’s sort of like – do you stick with the criteria you’re after, or [go for] something with a lot more potential but not the one you want as a completed product.
“[The new house] does have a bit of work to do on it to get it to something that would be worth $100,000 or $200,000 more, but in the longer run we’re in a good position.
“To get what we got in Sydney would not be possible for the same price bracket.”
Source: https://www.realestateview.com.au/news/act/tough-going-for-buyers-in-booming-housing-market/