There is a continued rise in house prices across the Hunter
As the real estate market celebrates the first month of spring selling season, house prices continue to rise in the Hunter.
During the past year, they rose by 2.61% in Newcastle and Lake Macquarie.
There was a 1.36% rise in Hunter Valley prices this quarter and a 2.53% increase compared to 2022.
As a result of the growth, industry experts say the property market has regained confidence.
In 2022, the nation experienced one of the worst house price slumps in decades.
In September, home prices in Australia rose 0.8%, marking the eighth consecutive month of growth.
In regional NSW, home prices increased 0.7% on last year in September, according to the PropTrack Home Price Index.
In September, Sydney home prices rose 0.48%, to be up 6.86% year-over-year, for the tenth consecutive month.
In her report, PropTrack’s Eleanor Creagh says the most rapid decline in home prices in recent history has now fully reversed, with national house prices returning to peak.
In September, the spring selling season got off to a busy start. Across the major capitals, buyer and seller confidence is on the rise, and choice is improving significantly.
National home prices have recovered all of 2022’s rapid price falls to reach a record high in September despite an increase in the number of properties coming to market.
Increasing net overseas migration, tight rental markets, and a housing shortage have driven home price growth.
There has been a sharp increase in the number of properties hitting the market in Sydney and Melbourne, which has given buyers a greater choice, but strong demand has caused prices to rise.
It is likely that interest rates have reached their peak and population growth is rebounding strongly. Prices are expected to rise as a result of a shortage of new home construction. More markets are likely to reclaim 2022’s fast falls to set new peaks as spring approaches.”
Tim Lawless, the research director at CoreLogic, shares this sentiment.
“We may see renewed affordability challenges deflecting more demand towards the middle of the market where entry barriers are lower,” he said.
It appears that soft housing conditions across regional Australia are driven more by demand, as home sales are estimated to be 6.5% lower than a year ago and 9.2% lower than the previous five-year average.
In November, Mr Lawless expects the national Home Value Index to reach a new nominal high at the current rate of growth.