NSW Newcastle 2019

Does tomlemke have a market update to share for the last few months and a capital growth prediction for Newcastle this year?!

 

Time for a 2019 thread @tomlemke?

 

Hey everyone,

Newcastle update 15/1/19

The market has definitely shifted and has now become a buyers market, stock levels are still low with only a handful of new listings coming onto the market each week.

We are only averaging around 5 buyers to the first open home with it dropping to 2 by week two.

Still confidence in the market with the two highest sales of the year in December 2018 both of the sales were for over $4,000,000.

46 Bar Beach Avenue, Bar Beach for $4,250,000
46 Bar Beach Avenue, Bar Beach, NSW 2300

4 Janet Street, Merewether for $4,590,000
4 Janet Street, Merewether, NSW 2291

The buyers are a lot more fussier with what they will buy at the moment, the majority of the buyer demographic we are seeing is either First home buyers or Downsizes. These two types of buyers don't want to do any work so if your considering selling make sure you spend the money on paint/ carpet /staging to freshen the home up.

Prices have shifted 5% to 10% in some areas.

This home 6 months ago would of achieved a low to mid $500's now it will be more like a mid to high $400's.

36 Myola Street, Mayfield
36 Myola Street, Mayfield, NSW 2304

 

Right so not as many people wanting to renovate?

What about developers and would-be developers. have they backed right off?

 

How's Carrington going?

 

Yep the same issue with finance, the majority of development sites on the market are being offloaded because they cannot make the figures stack up themselves and they think someone else will be able to make it happen at an inflated price.

Suburb report below, all these inner west area's have come off the boil, it's hard to gauge the market ATM as the majority of listings have been on the market for 3+ months.

The last sale was this townhouse in Forbes Street for $840,000 in November, it took 56 days and started off with the guide $850,000 to $900,000.

34/1 Forbes Street, Carrington, NSW 2294

 

Fair enough. Lots of builders going broke in the hunter region at the moment.
Martin Building, GR Homes, Blissfull homes, Sierra Building, Malman, macfox, just to name a few.
Do you think now is a good time to get a few bargains or wait longer?

 

If your strategy is to Buy / Hold i think definitely, i'm selling one of my interstate homes as i think there will be better opportunities in Newcastle over the coming year.

 

Thanks. For me, it's a buy and hold. There's potential in Newcastle.

 

Hopefully with focus on Newcastle, Stockton may get a look in at some stage. Almost like Stockton is the black sheep of Newcastle.
Last time I was on the ferry some uni students doing a pub crawl asked me if the people of Stockton spoke the same language lol.

 

What is the approximate ceiling of most buyers with regard to borrowing?

 

Raised in Stockton I most certainly can say it has gentrified and still is. Also we speak the same language. Just need a passport to get everywhere.

 

Plenty of property ‘experts’ predicting growth for Muswellbrook and Singleton again this year.

 

Very interesting. My question is would you choose a 400-500k say Macquarie Hills over a similarly priced house in Hallett Cove, Adelaide. The sentiment right now is Adelaide should be rising and Newcastle/Lake Macquarie declining, but how will it be in 5 to 10 years time. Adelaide has a lot of infrastructure happening right now, but human interest matters attract one to Newcastle, proximity to Sydney etc.

 

Btw Love Reality on LoveTV hyping up the Newcastle/ Lake Macquarie market on YouTube.

 

If the rate of growth in population and commerce increase significantly over the next 10 years then perhaps Adelaide is a goer.

 

Hi newbie here
I recently bought a land in Rutherford close to Newcastle area, it’s in Heritage Parc Eatate, any idea about the growth?

 

Statistically, the growth has been poor for the last many years - 1, 2 & 3% pa etc.
Last year in 2018 vacant land is showing as having 19.8% growth BUT this is on the back of only 30 odd land sales - so not very reliable numbers (too small turnover).
The fact is that there is lots of land available in this area - so no real sales demand pushing prices higher. Developers like the estate you have purchased in, drip feed the land releases in stages, so they do not flood the market all at once and cause prices to fall.

If it is for your PPOR, just build on the land and enjoy living there.