Real estate reckoning as lifestyle shift fades

The much-hyped, Covid-inspired lifestyle shift out of our cities and into the regions looks to already be over. See locations impacted the most.

The great Covid-inspired migration to regional NSW appears to already running out of steam, with fringe Sydney locations on the coast and in the mountains likely to be the benefactors as the real estate market shifts gear, again.

With the pandemic behind us, restrictions lifted and employees returning to the CBD in droves, the much-hyped lifestyle shift away from our cities and deep into the regions could already be a thing of the past.

As an overheated market, characterised by eager buyers, begins to cool amid a rise in listings and heightened speculation of rate rises, CoreLogic data has revealed the slowing down of relative price growth in areas such as the Central West, Newcastle and New England.

Zoe and Scott MacDonald and their daughter Maeve, 1, are selling their home in Avoca which has seen strong demand over the last few years. Picture: David Swift

The same areas that enjoyed astounding price growth of around 30 per cent in 2021 are now experiencing price growth below the regional average.

Meanwhile, as prices fell for the first time for 17 months in Sydney during February, values in commutable locations such as the Central Coast and in the Blue Mountains continued to grow as buyer demand remains strong.

And according to the most up-to-date search data from realestate.com.au, the Illawarra region is also popular with ‘highly engaged buyers’, with listings 100 times more popular with homeseekers than the national average.

The Blue Mountains region is likely to see median house prices pass $1m later in 2022.

MORE:
Federation mansion in Mosman has $19m-plus hopes
The ultra-luxe listings going viral this month
Aussie city’s huge 200 per cent house price growth

The Central Coast’s median house price has just passed $1 million, with the Blue Mountains likely to follow suit this year. However that is well down on the Sydney house median of $1.41 million.

CoreLogic’s Head of Research Eliza Owen said markets in commuting distance to the CBD such, as the Central Coast, were likely to remain “resilient”.

Markets within commuting distance to the CBD are expected to remain resilient.

“During a housing upswing we tend to see growth led by the ‘high end’ of the market, such as the Eastern Suburbs and North Sydney, but eventually as the cycle matures, we see a spill over in demand that flows through to more affordable housing markets,” she said.

“This might explain a surge in activity in some more affordable housing markets.”

Markets like the Central Coast that have been traditionally reserved for holiday makers are seeing higher numbers of permanent residents.

Traditionally, the Central Coast has been a mix of holiday-makers, sea changers and retirees, but the pandemic saw a reversal of the “weekender” lifestyle – where Sydneysiders spent less time in the city and more time on the beach.

A significant part of this was an increase in demand from Sydney buyers who wanted to make a permanent move to the area.

Principal at Belle Property Killcare Cathy Baker has sold a number of properties in Central Coast suburbs like Wagstaffe and Wamberal – both of which have seen price records broken recently.

With another child on the way, the MacDonalds are moving to another Central Coast home nearby. Picture: David Swift

“While there is increasing talk of a shift in the property market in the future, we’re still experiencing unprecedented conditions,” she said.

Zoe MacDonald and husband Scott are poised to take advantage of ongoing strong Central Coast demand with the listing of their Hillside Rd home in Avoca.

With one child, Maeve, one, and another on the way, the family are making minor renovations to the home before moving nearby to a larger address.

They bought the home five years ago and fully appreciate the attraction of buyers to the area.

Central Coast beach lifestyle.

“It’s the perfect work/lifestyle balance, you’re close to Sydney but it’s still a quiet coastal town and that’s what people love,” Mrs MacDonald said.

“The home has been delayed getting on the market and we were worried we might have missed out on getting a really good price. But we’re optimistic high demand is still there and we’re told there is a strong level of enquiries still with agents.

“We have noticed homes are not selling as quickly but they are still selling and getting premium prices. Even if the market has cooled a bit when we sell we should still be in a good position.”

Areas like North Avoca have been renewed by young families looking for cheaper prices away from the city.

The home will be listed later this month via sales agent Terence Dickinson at McGrath Avoca Beach.

“The real urgency of the market here has gone to a certain extent, listings are experiencing longer days on market and we are returning to more auctions,” he said.

“However our auction clearance rates are around 90 per cent and prices are holding. It’s a perfect lifestyle balance up here, you’re only an hour away and you do get a lot more bang for your buck than you do in Sydney.”

“We’re finding now a lot of people searching up here are also searching down south of Sydney, around Wollongong.”

New Realestate.com.au data has highlighted Blaxland as the most sought-after suburb in NSW in February, for ‘highly engaged buyers’, with followed the Illawarra locations Corrimal, Figtree and Unanderra. With the Central Coast’s Avoca Beach also in the top 10.

MORE:Luna Park rides force Big Dip in sale price
31-year-old Canva marketing whiz’s mega Bondi buy
What will flooding disasters do to house prices?

Originally published as Real estate reckoning as lifestyle shift fades