As we transition from a busier-than-expected Winter selling season into Spring, the Newcastle property market is gearing up for an active period leading into Christmas. Buyers and sellers in Newcastle, NSW, can expect increased market activity as the weather warms, with more properties hitting the market than in previous years.
Property Price Trends in Newcastle and NSW
Nationally, property prices are continuing to rise, although the rate of growth has slowed compared to earlier in 2024. According to PropTrack, Sydney property prices saw a modest 0.3% increase in August, contributing to the 19th consecutive monthly rise in housing values. Overall, Australian capital cities experienced a 0.3% price rise in the same period, with housing values now 6.4% higher than 12 months ago.
The real estate market performance varies across different capital cities. Sydney (0.3%), Brisbane (0.4%), Adelaide (0.5%), and Perth (0.8%) saw steady gains in August, while Melbourne (-0.2%) and Darwin (-0.3%) recorded slight declines.
Here in Newcastle, the median house price has now reached approximately $920,000, a 4.5% increase compared to the same time last year. This growth reflects the ongoing demand for properties in the Newcastle and Lake Macquarie regions, despite rising living costs and economic pressures. In nearby suburbs such as Marks Point, Blacksmiths, and Adamstown Heights, property prices have seen some of the most significant increases over the past 12 months.
Lake Macquarie and Newcastle Property Market
In our local market, Lake Macquarie and Newcastle continue to be highly sought-after areas for buyers, with 27 of the 42 listed suburbs now boasting median house prices above $1 million. This is a marked increase from just 16 suburbs a year ago, highlighting the region’s robust growth.
While the market remains strong, it’s important to note that future price growth is not guaranteed. At present, Newcastle’s real estate market is balanced, offering favourable conditions for both buyers and sellers. The steady price increases and increased inventory make this spring a great time to consider entering the property market.
Economic Factors Influencing Newcastle Property Prices
While rising living costs and economic uncertainty have weighed on Australian households, there are positive signs for real estate. Inflation is gradually decreasing, wage growth is improving, and stage 3 tax cuts have provided some financial relief. Additionally, potential future interest rate cuts may further boost buyers’ borrowing capacity.
Locally, the Newcastle real estate market benefits from an ongoing undersupply of homes, driving up both property values and rental prices. With more properties expected to be listed this spring, local buyers may find themselves with more options, alleviating some of the pressure to make quick purchasing decisions.
Outlook for the Newcastle Property Market in Spring 2024
Based on recent trends, we anticipate a busy spring for Newcastle real estate. The number of properties being listed has increased significantly over the past few months, and we expect this trend to continue as we move towards the end of 2024. For buyers, this presents an opportunity to explore a wider range of properties, while sellers can benefit from the continued high demand in Newcastle and Lake Macquarie.
If you're considering buying or selling property in Newcastle or Lake Macquarie this spring, now is a great time to act. The market is offering strong opportunities for both sides, with plenty of activity expected in the months ahead.