The number of investors looking to purchase property appears to be have been steadily dropping for some time. We thought it would be worthwhile looking at some data. These stats show the percentage of buyers who purchased our properties that were buying as an investment rather than to live in.
These are just for our sales so statistically the data is not perfect as they are only based on 207 sales over the past three years. In saying that, they do reflect what we see on the ground in terms of proportions.
Less investors in the market means greater opportunities for first home buyers. We don’t have the stats to show the number of first home buyers but we’re very confident this number is growing.
THE BIG 9
In our Feb Market Update, we indicated that prices have dropped across the Newcastle council region. These changes aren’t always uniform. Some areas have performed better, others have struggled.
Here are the median sale price for the September – November quarter in 2018 compared with the same period in 2017 (which we reckon could be regarded as the peak of the market). This is for houses only, except Newcastle, which is only recorded as units.
As the sample size is quite small, we have only included the biggest suburbs in terms of number of sales per quarter in the region. Whilst not perfect, they give you some basic trends. Again, these shouldn’t be taken as gospel. Property information should ideally be considered over a wider time frame, but none the less, some very interesting findings.
Merewether has seen a huge decrease as has Adamstown. Surprisingly, New Lambton whose average sales price and typical buyer demographic is very similar to Adamstown’s has recorded an increase. Of the nine biggest areas, three have recorded increases.
What is consistent is the drop in the number of transactions. Both this fact and the fact that the most expensive areas are most likely to contract first (ie Merewether), appears to be a typical in a changing market.
NOTE: market statistics are based on settled sales provided by Pricefinder during the prescribed period. We have in preparing this document used our best endeavours to ensure the accuracy of all the information provided. We accept no liability or responsibility for any errors or inaccuracies and recommend that all recipients make their own enquiries to verify any information given.