The Hunter Valley property market began 2020 positively, as we reported in March, with a lot of market activity and some decent sales.
That, of course, was just before COVID-19 lockdowns and disruption.
But while the coronavirus has had an impact on all of our lives in ways we could never have imagined, the property market in our area is actually doing very well.
Here are three key trends we have observed over the past couple of months.
Low stock levels are combining with strong buyer interest
While we’ve been busy, we’ve also noticed fewer listings coming onto the market in the past five months than we’d expect to see. Sellers are holding off listing their homes, resulting in something of a stock shortage.
These low stock levels are creating more competition for properties from buyers and, as a result, prices have remained stable despite the current economic conditions.
We’ve seen good results and healthy prices and many properties have been selling quickly. In some cases, there has been so much demand that properties have sold off-market before any public campaign even launched.
According to Corelogic, this is part of a national trend. Across Australia, the total number of properties available for sale fell 4.3% in July. That means there are 15.2% fewer properties for sale than this time last year.
According to realestate.com.au, as of August 2020, houses in Singleton had a median sales price of $390,000 and units are sitting at $215,000.
All of this means that now is actually a good time to sell.
Rental properties are in short supply
The trend of low supply has also crossed over to the rental market. Unlike regions that rely solely on tourism or hospitality, Singleton still has jobs and employment opportunities, so we’re seeing strong competition in the rental market. Tenants are renting properties faster than we can find them. Many are even competing to offer extra rent to secure a rental property.
According to realestateinvestar.com.au, Singleton’s vacancy rate in late August was down to just 0.58%. The median weekly rent for houses is $400 and for units is $300. Houses have a good yield of 4.78% while units are sitting at a very healthy 7.09%.
Lifestyle properties are exceptionally popular
Many people are looking for a change of pace right now but the popularity of lifestyle properties in our area predates COVID-19. Earlier this year we highlighted how Singleton was listed as one NSW’s most searched for locations for rural properties. It’s popular with locals, young families and retirees, and those looking for a tree change that’s within easy reach of a city like Newcastle.
Within seven days during August, my team sold seven properties at The Retreat. Each of these sold for $700,000-$900,000 and offers a wonderful lifestyle on acreage.
There’s also been strong buyer interest in vacant acreage and land, thanks in no small part to the Commonwealth Government’s HomeBuilder COVID-19 stimulus which offers $25,000 towards a major renovation or new home build.
Want to know more about the state of the local market
Find your ideal home in the Hunter Valley region by contacting One Agency Lindy Harris today.