Newcastle has had another huge year in real estate; with prices seeing significant increases across all suburbs. Although we are now starting to see buyer activity starting to regulate, which simply means instead of having 50 or more people lined up at our open homes we are now averaging 10-15 buyers coming through. And with less demand comes less urgency and the (FOMO) or “fear of missing out” factor is no longer playing a part in buyers decision making. Buyers are now happy to sit back and do their due diligence before jumping in with an offer at the first open home! Renovated and well presented homes are now in big demand as renovating or building has become a challenging and expensive process. This is an interesting change because at the end of market booms, we typically see more demand for cheaper original or run down homes. Given building costs are predicted to be elevated over coming years; I expect that finished homes will not only retain their premium price for some time, but the value spread between renovated and unrenovated properties will, in all likelihood, get wider. Sellers are able to achieve a premium for new and renovated homes in today’s market! Despite having a smaller buyer pool and less listings currently on the market; we are still achieving suburb and street record sales on a regular basis. So yes, things have slowed down and the heat has come out of the market but we haven’t seen any signs of prices dropping as yet. David Caldwell Director & Licensee Welcome to your market update David
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