Winter Market Update

Winter has arrived and with it, a new financial year. Nationally, the real estate market remains a major talking point. Here is your Winter Market Update.

We had a strong Autumn quarter in terms of sales, with 18 sales for an impressive average sale price of $770,800 (excluding Bridgman Ridge). Properties that are well priced are still receiving enquiry, inspections and offers in the first 10 days. Three good examples of this are 12 Acacia Circuit in Hunterview, 7 Howe Street in Singleton, and 1 Dimmock Street in Hunterview, which all SOLD during the Autumn quarter for on or above the listed sale price within a week of listing.

Winter looks to be another busy one after 10 sales in May. We have a number of listings coming on in the first weeks of the new season, so keep your eyes peeled as we have a range of properties that will suit multiple buyers.

1 Dimmock Place, Hunterview

Nationally, housing market conditions are on the improve, with a 1% quarterly lift. This marks the first quarterly lift in national home values since May last year.

Closer to home, CoreLogic data and analysis back up the comments we have made regarding the Singleton market throughout the first half of 2023.

“Affordable rural markets continue to show resilience. Despite two interest rate rises over the first few months of the year, these markets offer relative affordability, have low listing levels, increased regional migration inflows and strong economic activity off the back of mining, agriculture and/or tourism.” The Singleton market remains stable and is a reflection of the strong local economy off the back of the coal industry, and relative affordability in comparison to nearby towns.

HELP Debt

HELP debts do not attract interest, but they are indexed to inflation, based on the consumer price index. (Mentioned in our Autumn Market Update)

There is set to be an increase to repayments on the Higher Education Loans Program (HELP) debts – commonly known as HECS. The repayment jump will average $1760 a year as balances rise by 7.1 per cent today.

The Australian Financial Review revealed that graduates in the 20-29 age group will take the brunt of the CPI rise, with their increase going up by an average of $2069 on the median debt of $29,138.

Help debts do effect how much a bank is willing to lend you for a mortgage, as they lower your take-home pay. This means if you’re considering applying for a home loan, you should speak with a mortgage broker to determine whether you’d be in a better position if you paid off any Help debt now or kept that extra cash for your deposit.

2023-24 Budget: Real Estate

The two real estate takeaways from the recent Labor 2023-24 budget include changes to the Build to Rent tax rate as well as an expansion to the low-deposit home loan schemes.

Build to Rent refers to a residential development where all units are retained and rented by one owner. The budget outlined “a reduction in the withholding tax rate for eligible fund payments from managed investment trusts attributed to newly constructed build-to-rent developments from 30 to 15%. Research suggests this could boost housing supply by 150,000 apartments over 10 years.

The Federal Government currently has three low-deposit home loan schemes running: The First Home Guarantee, The Regional Home Guarantee and The Family Home Guarantee. The budget outlined an expansion to the criteria of those who could qualify:

• Any two applicants beyond spouses and de facto couples.
• Non-first home buyers who have not owned a home for the last 10 years. (First Home Guarantee, Regional Home Guarantee)
• Single legal guardians of dependents. (Family Home Guarantee)
• Permanent residents may now also qualify for the Home Guarantee Schemes.

Stamp Duty

Increased stamp duty exemptions for first home buyers in New South Wales after legislation was passed in the lower house. The First Home Buyers Assistance Scheme raises the threshold for stamp duty exemptions for first home buyers from $650,000 to $800,000 and stamp duty concessions from $800,000 to $1 million. First home buyers purchasing a property for $800,000 stand to save $31,090 in stamp duty. The new scheme replaces the former government's first home buyer land tax option.

"These changes will help five out of every six first home buyers pay no stamp duty, or a concessional rate, and delivers a key election commitment to abolish the annual property tax."

Winter Quarterly Booklet - CLICK HERE