The Bega Valley real estate market has been rising steadily with the average house price increasing from $290,000 to $310,000, according to Domain.com.au. While it might not have seen the steep price hikes seen in Sydney and Melbourne, the region certainly felt some of the heat rising from the hottest cities on the 2015 real estate map. But 2016 is looking different, with prices stabilising towards a more balanced market.
Usually, real estate experts refer to a “buyer’s” market or “seller’s” market. Following the classic rules of market forces, if there’s an excess of stock, it should be easier and cheaper to buy (i.e a buyer’s market). If there’s a shortage of stock, then prices rise (i.e. a seller’s market).
2016 is looking to be a more “balanced” market, with less advantage for either buyers or sellers.
Why do we think that?
- Days on Market (DOM) – DOM is one of the leading real estate indicators for supply and demand. As the DOM gets shorter, it typically coincides with rising prices. Longer selling times generally see less upward price pressure. DOM is stabilizing in the Bega Valley.
- Lack of lower-priced stock – With a lack of entry level homes for sale, buyers are being directed to mid-range properties in the $400-500k range. Although there are currently more buyers than properties in this range, there’s not enough demand to push prices through the roof. Buyers are prepared to meet the market or pay close to listed prices but are unlikely to pay an inflated price set by a seller wishing to push the boundaries.
- Selling to Buy – Vendors are realizing that when they sell, they need to buy again elsewhere. If they hold out for an “over-market” price for their existing home, there’s a good chance that other sellers are using the same strategy. That simply pushes prices up where you want to buy.
Fisk & Nagle First Choice are the local property experts who price to the market, rather than make inflated promises to sellers. If you sell here, you can move to where you want to live before prices go up. It seems like sensible advice, doesn’t it?