INTERESTING RATES: Australian Property Monitors data indicates growth in home and unit prices is slowing down. “We’ll have more balanced conditions in some suburbs,” PRDNationwide’s Mark Kentwell said.
Newcastle’s property prices appear to be back on the climb, butagents have been cautious in their predictions forthehousing market’sfortunes in 2018.
The median house price in Newcastle dipped to $580,000 by the end of the September quarter, following18 months of spectacular price growth.The median unit price across the local government area fell to $466,000.
The latest Australian Property Monitors data shows Newcastle’s medianhouse pricerebounded to$620,000 by the end ofOctober, while the median unit price surgedbackto $511,000.
Principal of PRDnationwide Newcastle and Lake Macquarie Mark Kentwell expected continued growth next year, butat a slower pace than the last four years, which have seen prices skyrocket 40 per cent.
“It’s not sustainable for the market to have double-digit growth in the suburbs year after year,” he said.
“Some suburbs may ease on their growth because buyers have a flight to value.They look for a suburb that has similar offerings but is cheaper.
“For example, people could pay $1 million for a cottage in Maryville which needs work or go across the road to Hamilton and buy a similar property for $850,000.”
Mr Kentwellsingled out Hamilton and The Hill as the two most under-valued city suburbs, arguingboth were poised for a growth spurt.
“We’ll have more balanced conditions in some suburbs and they’re likely to be the ones that have had the crazy growth,” he said.“[Vendors] might be in a period where prices go sideways for a little bit, which is healthy.”
Maitland residentLaura Turner is looking to take the plunge into home ownershipin 2018 with her partner, Harry.
The 26-year-oldwas“hopeful”predictions about a cooling market would turnout to be accurate. However the couple have already abandoned hopes of buying in Newcastle.
“We’re looking at Maitland, East Maitland, Tenambit, those sort of suburbs,” Ms Turner said. “We’ll hopefully buy a house up here and then down the track upsize or move closer into Newcastle.”
Ms Turner, who works in pathology, has been saving for about five years. Her partner, a sales representative, has been putting money away for about seven years.
The couple havetried to take a balanced approach to saving.
“We don’t go out for smashed avocado every weekend but occasionally if we want to go out for breakfast we’ll find a cheap place,” Ms Turner said. “Ihave been able to have a couple of small overseas trips since leaving high school. If Ihadn’t I’d have got the house a little sooner but it was worth having those experiences.”