Tumut would not be on the tip of homebuyers’ tongues.
And yet this Riverina town in New South Wales, in the western foothills of the Snowy Mountains, has seen some of the highest house price growth in the country.
Speaking in This day On Tuesday, Domain property expert Alice Stolz revealed the areas where home prices have risen and fallen the most in the last three months.
“We live in a backwards real estate world,” he told hosts Karl Stefanovic and Allison Langdon.
“In terms of why we’re seeing such steep declines, a lot of it is due to changing interest rates, obviously.
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“And that has hit the premium areas in particular which have really seen a lot of growth in the last couple of years. They’re really feeling the brunt of it.”
In a two-spectrum tale of the market, Ms Stolz said cheaper areas have also seen prices rise due to increased demand.
“In terms of the other side of the coin as to who is seeing sharp increases, unsurprisingly, it’s affordability once again that’s really helping those prices go up as those people get pushed further and move away from traditional areas”. she said.
“In Sydney and Melbourne, houses are seeing big drops right now,” he said, singling out Victoria’s La Trobe Valley (up 14 per cent over the quarter) and Tumut (up 15.6 per cent) as standouts.
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Regarding falls in stocks and property prices, Ms Stolz said: “What we’re seeing is houses really bear the brunt of this.”
Coastal areas have experienced the largest landslides: Cassowary Coast in far north Queensland (incorporating towns such as Innisfail, Cardwell and Tully), Coffs Harbor in New South Wales, and Victoria’s Hobsons Bay (engages southwestern suburbs and often partners with first-time homebuyers).
Despite the price spikes, Stolz said more and more sellers and buyers are meeting “in the middle” to close the deal.
“But I think we are going to see a new phase of the real estate market, where things are calmer and we have less volatility,” he said.
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“How long is a piece of string? But it’s going to be interesting to watch.”
Ms. Stolz said that to make the most of a cooling market, buyers need to be honest with estate agents and express their intent, because in environments like this, properties commonly sell before auction.