AFTER a year of record-breaking prices, Tamworth's property market is tipped to lose some of its steam in the next four to six months, according to local property experts.
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While regional housing prices have risen by 6.3 per cent in the past three months alone, the sector says those rises are unlikely to be sustained as fears of higher interest rates and tighter lending weighs on demand.
According to CoreLogic, every capital city is now recording a slowing trend in value growth, and while the regions are growing at a substantially higher rate than the cities, conditions have eased since a recent peak of 6.4 per cent over the December quarter.
PRD Tamworth licensee Mark Sleiman expects the local market to follow the trend of the capital cities, and predicts prices will start to 'stabilise' as more properties come on the market over the coming months.
He said low housing supply has been a huge factor in the 25 per cent price increase the Tamworth market has seen over the past year.
"We sit six months behind Sydney with all of our market movements, so I would suspect that in about four to six months we will start seeing more stock enter the Tamworth market," he said.
"At the moment, we are in a low supply rental and sale market which has kept the values very strong, and I expect they will remain strong for the next four to six months before coming back to a balanced market later this year."
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According to CoreLogic, the median value of a home in the New England North West sits at $369,390, and during February values continued to rise by 1.9 per cent.
First National Real Estate Tamworth principal Margo Taggart said despite the national trends, the local property market remains strong, with heavy interest returning from local buyers.
"There is still strong interest in properties anywhere from $300,000 to $550,000, and there is a lot of local money coming back," she said.
She said even if prices go down in the city, buyers will continue to look at regional areas like Tamworth as a favourable place to buy.
"Affordability in the cities is always going to be far out of reach for our market," she said.
"I think it's a real lifestyle choice, I don't think it's just the real estate affordability. Because they haven't had to pay a lot of money for a home, they can still have other luxuries in their life. They're balancing it out with more affordable housing."
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