The Newcastle property market is a dynamic and constantly changing place. Here are a few things we are noticing right now from the coal face:
We have seen some terrible weather here over the last couple of months. This is definitely having an impact on the local market and the psyches of both buyers and sellers. Potential sellers are delaying their plans, putting off launching their property to the market for weeks and in some cases months, waiting for the weather to improve. Many sellers are concerned about rain affecting open home turnouts or revealing drainage issues.
Meanwhile, buyers are still showing up, umbrellas in hand. Some even like inspecting in the wet; seeing it as a great way to determine how a home holds up. We can’t help but think that this has led to a lower-than-average number of homes for sale during winter this year. Whether that means an increase over spring remains to be seen.
Given the weather, we are seeing pest and building reports coming in with more drainage and damp issues than normal. Mould is all around. Suburbs with an abundance of sloping blocks, such as North Lambton, Adamstown Heights and New Lambton Heights, are particularly prone to issues.
If you plan to sell within the next six months, we’d strongly recommend obtaining a pest and building report early to allow time to address any issues. Buyers will walk away from homes with drainage problems or feel they have a stronger negotiating position. Burying your head in the sand and thinking that your place is perfect is an easy way to lose money on your sale price. A great agent will be able to give you the right advice and show you how to mitigate any loss (provided you give them enough notice before selling).
The sub $1,000,000 market is buzzing with activity. We’re seeing seasoned investors cashing out to fund renos, new homes or retirement plans. Meanwhile, first-time investors are stepping in, eager to establish a foothold in the market. With interest rates starting to soften this year, it’s only added fuel to the market, attracting a strong mix of buyers and investors.
Many are chasing standout quality in this price range, though agents are reminding them it might take some patience to find a property that ticks all the boxes. We haven’t seen a large influx of investor activity for a few years, and adding more buyer activity to the market is contributing to rising prices.
There has been plenty of attention around the NSW Government’s push to create more housing around key transport hubs through the Transport-Oriented Development (TOD) program. This means faster approvals and state-led rezonings within 1,200 metres of stations like Adamstown, Kotara, Hamilton, and the Newcastle Interchange, as well as new rules to encourage mid-rise and mixed-use development within 400 metres of dozens more centres.
If you live in an area within walking distance to one of these areas, chances are you have seen an uptick in real estate agents encouraging you to sell. If you are told your place has suddenly doubled in value (or they have a handful of developers on their books desperate to pay top dollar for your home), it’s almost certainly a scam. Tread carefully and resist the urge to get carried away. The wheels of development turn a lot slower than you may think.
Despite rates holding steady with the RBA’s July decision, recent cuts earlier this year, along with low stock levels through winter and constant media hype around the market, have pushed some buyers into panic mode. We are seeing more people at open homes and an increasing pool of buyers making offers before they have even seen a property. Most homes currently have multiple offers, and buyers are eager to demonstrate their motivation and readiness to purchase. Many are enquiring about off-market opportunities and are keen to get on agents’ databases.
Given the above FOMO, an increasing number of buyers are turning to buyer’s agents. For the uninitiated (and those who don’t watch trashy US real estate shows), a buyer’s agent represents a purchaser in the transaction. Their job is to find a home, conduct due diligence, and negotiate on behalf of their clients (for a fee). They have exploded in popularity in recent years, and if the market stays on its hot streak, this is likely to continue as buyers’ desperation increases.
Vendors are paying very close attention to what’s hitting the market, what’s moving quickly, and what’s hanging around. A big sale in the street or suburb often lifts seller expectations, but it’s worth remembering every home is different. Many are also closely watching media headlines, which can sometimes make the market feel hotter than it actually is.
A good agent will have an honest conversation about your home’s value. Be excited about the potential to cash in but remember there are limits on what people are prepared to pay. And always remember price results are the combination of supply and demand. It wouldn’t surprise us if there were a lot of homes hitting the market in the next couple of months. If that is the case, buyers will have more options, and this could put street and suburb records back on ice.
We’re seeing strong interest in properties that have a second dwelling, whether that’s a granny flat, studio or separate self-contained space. For investors, it’s all about the extra rental income, an instant way to boost yield and offset mortgage costs.
But it’s not just the investment crowd leaning in. More families are on the lookout for dual-living options to bring generations together under one broader roof, while still giving everyone their own space and privacy. With affordability top of mind, multi-generational living is becoming a practical (and often more enjoyable) way to pool resources, share responsibilities and stay close. It’s one of those trends that ticks multiple boxes at once, and it’s showing up more and more in buyer wish lists.