NSW Newcastle 2019

@TylerJamesson hit the nail on the head that prices have come back to 2015 levels. We are still seeing a few out of line sales for quality or unique homes but the majority of homes have come back between 10%-15% in most areas.

I agree with your comment about Mayfield, this home would of sold for mid $400’s 12 months ago.
Anything needing work or with an odd layout are a really struggling to sell.
3 Watson Street, Mayfield, NSW 2304

Neatly renovated homes up to $650,000 are still selling well in Mayfield and days on market is around 30 days or less for these. Mayfield seems to be where all the first home buyers want to be.

The two main areas that seem to have been affected the most are the inner city unit market and the suburbs around the around the University eg... Jesmond, Birmingham Gardens, Waratah West.

Plenty of stock on the market for buyers to choose from in these areas, the only apartments that are selling well are the ones that have a view that won’t be built out.

Hopefully the market will start to flatten out now, there seems to be plenty of people still out looking just no real urgency from buyers.

 

I think unrenovated stock in Mayfield are exceptional value at the moment.
I like anything within walking distance of a train station, because parking in town is becoming more of a nightmare and commuting is much easier with the light rail now. Also rental demand is extremely high around the train stations now.

 

Sorry, I probably should add that not all houses in Mayfield are priced well..

 

Wow 2015 level... that seems to have happened quickly as it seemed for a little while there Newcastle wasn’t following Sydney that much.

 

These two have potential for value add if you could pick them up for low to mid $400's.

8 Southon Street, Mayfield
8 Southon Street, Mayfield, NSW 2304

28 Texas Street, Mayfield
28 Texas Street, Mayfield, NSW 2304

 

Thanks Tom. Have you observed rental demand and pricing dropping also like Sydney?

 

Any unit purchasers walking away from 10% deposits yet?

 

Rental demand currently is pretty low which is fairly standard for this time of year. The rental market for houses should stay fairly steady, the unit market will continue to struggle with more and more projects being completed. It doesn’t help when 20+ units come up for lease at the same time in the same building.

 

20+ units at same time... wowsa... was there much uptake of the new building by foreigners or mostly locals?

I know in Sydney no new residential development is being funded / started now, is that the same up there?

 

I know of a few design+build developers who are pulling out of large resi projects because they can't make it stack up. Sky Residences will not go ahead...
Also some 4-5 storey unit block on Tudor St Hamilton is on hold

 

Well it looks like the defeat of the ALP and it's absolutely disastrous franking credits, negative gearing and CGT tax policies have lifted the cloud of uncertainty which has been hovering over the entire property market the last 6-9 months.

Went to a few open homes on Saturday and saw an uptick in the number of groups through. I think people are a lot more confident all these silly property tax policies are dead buried and cremated.

On a positive note, I doubt we will be seeing those tax policies again for a LONGGGG time.

 

I was hoping someone would post some stories about auctions/open houses around town. Agree with everything you said and if APRA go ahead with reducing interest rate serviceability level and interest rate cuts happen hopefully property prices stabilise and/or startto rise again

 

It will be interesting... this is what everyone is hoping... of course if prices continue to fall despite rate cuts etc might see even more desperate FONGO in 6-12 months

 

My opinion is there seems to be more confidence from buyers in the market now that the elections over, I think we will see a small surge because of this & combined with the talk off APRA changing the servicing requirements. I've got no idea how long this will last as the last time Newcastle went through a downturn it lasted from 2004 - 2012.

I don't know weather it's a combination of these things or that we are at that point in the cycle where it has bottomed out now and buyer are actually starting to miss out on the good quality homes again if they don't act quickly.

Our office has had 19 unconidtional sales so far this month which is above average for us, there hasn't been much stock coming on market which I think is a key factor that has helped us sell well in May.

It will be interesting to see how the rest of the year pans, winter is generally the slowest time of the year with most people generally waiting until spring before listing their homes for sale. Hopefully the shortage of stock mixed with plenty of buyers still looking will keep the market buoyant over winter.

 

[QUOTE="tomlemke, post: 703616, member: 616". I've got no idea how long this will last as the last time Newcastle went through a downturn it lasted from 2004 - 2012.

I don't know weather it's a combination of these things or that we are at that point in the cycle where it has bottomed out now and buyer are actually starting to miss out on the good quality homes again if they don't act quickly.

Our office has had 19 unconidtional sales so far this month which is above average for us, there hasn't been much stock coming on market which I think is a key factor that has helped us sell well in May.

It will be interesting to see how the rest of the year pans, winter is generally the slowest time of the year with most people generally waiting until spring before listing their homes for sale. Hopefully the shortage of stock mixed with plenty of buyers still looking will keep the market buoyant over winter.[/QUOTE]



Yep

 

Was rather annoyed to see so many at the open home for this property .... immaculate condition, if you can see past the floral carpet and mass cabana's

29 Dunbar Street, Stockton, NSW 2295

 

I imagine most were neighbours there for a sticky beak considering the character of that place, wow!

 

There were a lot of serial renovators ... pity I don't have the spare cash atm

 

You have too loosen the purse strings soon, you cannot take it with you