Positive Times for Residential Property
The below is an extract from Herron Todd White September Month in Review – HTW are established property and valuation service specialists.
The extract relates to the ‘Coffs Coast’ market for the winter just now passed . HTW did not comment on the ‘Mid North Coast’, but with highway upgrades and close shire proximity, there are definite aligned similarities.
"Generally we see a reduced number of listings and weaker buyer demand during these cooler months. This year seems to have been no exception for sellers, however buyer demand is up which has caused a supply and demand imbalance. This is good news for sellers as prices being achieved are regularly at asking price and more often reaching values above asking price, which is a reflection of the strong demand. This poses the question of why there is such demand. There is never one answer for supply and demand factors, however demand is being fuelled by the COVID-19 pandemic. Selling agents are reporting strong enquiry rates from southern city dwellers in the greater Sydney and Melbourne markets which is a direct effect of the COVID-19 environment in which we now live. The ability or should I say the willingness of employers to allow their staff to work from home is a key driving factor. The work force can now diversify into other locations and anyone who was thinking about a lifestyle move is definitely now motivated to do so. This extra demand on property over the winter months coupled with reduced stock and the continuing low interest rate climate has seen very strong prices being achieved.’’
Here on the mid north coast of NSW we are seeing similar results and I make the following comments :-
Land sales and residential construction continues at a solid pace , fuelled by migration out of Sydney. Anecdotally ,a large percentage of these people are retirees.
Covid 19 has forced a reassessment of perceived safety in regional areas.
Technology and working by remote access allows work location boundaries to be removed.
Past highway upgrades have considerably shortened the distance between Sydney / Newcastle and the mid north coast.
Infrastructure, hospitals, educational facilities, etc are in place.
The cost of borrowing remains low for the foreseeable future.
So despite recession and Covid the mid north coast of NSW remains a great place to live and work.
The COMPASS group is well positioned to discuss your financial needs . You can contact us on 65832211 or visit our website www.compassadvice.com.au