A big surprise in the property market over the past two years since the pandemic hit our shores has been the popularity of regional markets.
Australia is among many western nations that experienced an exodus of white collar workers who’ve cashed out of their city properties to live with more space, freedom and safety in rural or coastal regions.
The work from home movement has added to this impetus, giving many the option to say goodbye to the grind of grid-locked, peak-hour traffic.
The result of these phenomena has been quite remarkable. Regional markets saw values leap 32% last year compared with a national average of 20%.
In the three months to last December, industry researcher CoreLogic reported values were 6.4% higher, following up on a 5.4% rise in the September quarter.
Value growth in the regions is also expected to continue, albeit not at the heady pace of 2021. Why? Because housing stock remains tight.
CoreLogic reports that in 2021, the advertised housing stock was down almost 36% on a five-year average. That’s an interesting result given that in the December quarter national advertised house stock was 24% higher than the five-year average.
This points to renewed owner confidence about selling in the cities while regional properties remain tightly held. However, if interest rates increase this year – as they’re predicted to do – and the work-from-home movement loses steam (and there are signs of that happening), the heat in regional markets may also ease
So, if you’re thinking of moving to the country, you’ll likely find prices affordable when you weigh them against the cash you’ll likely generate from the sale of a city property.
If a sea- or tree-change remains on your bucket list, we’d be delighted to help you. As an experienced agency in the area, we believe it’s a great time to consider selling. Our team can advise you on how to maximise the value of your home so your life’s dream becomes a reality.