Is the current Regional Victoria property market cooling?

REAL ESTATE

Many are questioning, “Is the Regional Victorian property market cooling”, and while many of the capital cities around Australia look like performance could be slowly turning, that doesn’t exactly mean the same can be said for the regions, especially in areas like Mildura, which is some 500kms+ from our capital city.

So is the market really cooling here in the Mildura/Wentworth region? And should buyers or sellers be worried? Let’s delve in and take a look. 

What is happening in the current market?

One of the main reasons the property boom is losing some momentum in capital cities is that the “price gap” is widening between vendor expectations and what buyers are willing to pay for a particular property. 

In Regional Victoria and most specifically, the Mildura/Wentworth Region, good listings are still flying out the door with a strong buying group snapping up properties quickly and with strong offers. We’re still seeing strong interest from investors outside the region, and there are many locals looking to secure homes.

We are still seeing a strong appetite from buyers for premium properties and tidy homes that can be moved into straight away! Essentially, we’re starting to see a slow in the amount of listings that are coming on right now, but the numbers of buyers attending opens hasn’t dropped, which means it’s a great time to list if you’re considering selling.

Sales activity volume has been high the past few months locally, mostly as a result of lockdown periods which delayed some sales campaigns, and buyer competition that was so fierce that many vendors have had the advantage of a quick sale, capitalising on pent up buyer demand.

It’s important to remember, that presentation and styling is critical if you are to achieve a strong result in this market. To learn more about effective styling and presentation, see our article here; How to market your property online.

While A-grade properties will always do well in any market, B-grade properties which don’t necessarily tick all the boxes are still moving quickly. Presentation and the right styling can absolutely help achieve a runaway result if you’re still keen to peak out the market; contact us at One Agency to learn more about how we help vendors achieve strong results.

Should we be surprised?

Although the market is still quite strong, new listings are starting to slow, should we be surprised… well no. It’s entirely inevitable that the market will cool at some point. Sellers in Mildura should consider listing now, while there is still strong buyer demand in our region.

Sellers shouldn’t fear rising interest rates or put a huge amount of emphasis on this being the core reason for the market cooling when that time comes, it’s more likely that housing affordability will be the first factor that will slow the market down significantly. Prices have risen by more than 20% in the past 12-18 months and that kind of growth can’t continue forever.

APRA are beginning to tighten people’s borrowing capacity and credit criteria and some banks are currently raising fixed interest rates which will begin to show some impact in the future. So it’s no surprise that affordability will inevitably become an increasingly significant factor which cools the market, resulting in a more balanced market correction.

It’s important to remember, if you’re looking to buy, you should not worry about whether the market is going to cool tomorrow. And if you are looking to sell, ensure you sell and then subsequently purchase in the “same market” cycle or timeframe. 

Remember, housing and property is a long-term game and you should plan to hold your asset through at least one or two cycles (10-20 years). Don’t let short-term “expert predictions” or media speculation change your long-term course. To learn more about key property investment terms, see our article here; Key Property Investment Terms and Jargon explained. 

Always seek advice from a trusted professional.

Purchasing and investing in real estate is exciting and when done well, can significantly transform your life.  Here at One Agency Mildura, we live and breathe real estate and our region, and have insights into exactly what is happening in our community at any given time.

Now is a great time to get started on your property journey, or continue climbing the property ladder, as interest rates are at an all-time low. Our agency is also seeing high-quality family-oriented supply begin to come onto the market, and this is set to continue as we progress through summer.

To learn more about the benefits of real estate investing and what prices may do long-term, please contact us at One Agency.  With One Agency being one of Mildura’s most trusted real estate agencies, we are well placed to provide you with our view of the current market based on our local experience. We’ll thoroughly guide you through the process and help you take advantage of this opportune time in the property market.

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