The marketplace for Rural and Lifestyle property in the Hunter Valley, has been challenging since the Global Financial Crisis in 2008. In the last twelve months however, the market has been quietly building and Jurds Real Estate has been experiencing very high levels of sales activity. In the last three months particularly, the feeling of confidence has definitely returned to the market. Many properties that have been for sale for quite some time, not only have sold but have sold for full price or more, as purchasers compete for the same property.
There are two reasons for this trend, low interest rates and immigration, creating unprecedented demand in the Sydney market. This demand builds pressure, as supply is outpaced, increasing prices. Sydney property owners then choose to sell at a high level and move to the country. Despite Australia’s general economic woes at the moment, unless immigration slows and interest rates rise, I do not see this changing in the short term. This trend is not common across Australia, it is happening in the Hunter Valley due to accessibility to Sydney.
This is my twenty eighth year in Real Estate and I have experienced many ups and downs but two significant upward trends (booms). The first was in 1987 and ended in 1990 as capital exited the stock market and was reinvested in real estate, until rising interest rates resulted in a huge crash. The second was from 2000 until 2003, as the combination of capital invested in infrastructure for the Sydney Olympics and the introduction of GST, triggered a building boom. Once again in 2003 there was a crash.
There is always a trigger and this time it’s low rates and migration.
My second boom experience was thirteen years after the first. We are now almost thirteen years after the second. I may be wrong but in July, Jurds Real Estate sold 33 properties for the month.
I am predicting strong sales activity for the next two to three years.
If you had a market appraisal of your property earlier this year or before, you will probably be pleasantly surprised by the market today.
If you would like up to date advice on where your property value currently is, please do not hesitate to contact my office for a free market appraisal.