This is the second installment of three parts that will dissect the current property and rental market in the Mid-Western Region.
It's the topic on everyone's lips.
While the current Mudgee region market price point is unlike anything seen before, for a collection of local real estate agents, the rise in cost is a result of the hundreds, if not thousands, of potential buyers, renters and investors driving demand.
"There's no question, if a property is priced right, presented right, it is selling," McGregor Real Estate director, Bruce McGregor said.
"Prices have definitely risen and it's obvious why - supply and demand," Ray White Mudgee director, Trent Robertson added.
According to realestateview.com.au, an estimated 14 per cent rise in median house prices occurred between August 2020 and July 2021.
And, while median figures varied slightly between the group of agents, a hike in prices is irrefutable.
"The average house price now is getting to around that 570 to 580 thousand dollar mark compared to the 500 thousand dollar price point at the start of the year," The Property Shop director, Andrew Palmer said.
"For us, the average house price now is probably about 600 thousand. We're selling units for around the 500 thousand mark now," Mr Robertson said.
"I can't see the prices changing at this point in time because of supply and demand," Mr McGregor added.
The average rental price revealed a similar trend between October 2020 and September 2021 with realestateview.com.au recording a 12 per cent rise.
"Median rent is now tracking around the 460 dollars a week mark which is up from the start of the year by 40 dollars," Mr Palmer said.
Buyers, renters, investors not deterred by price hike
The price increase has not reflected a dip in enquiries, according to the agents, with properties available for a much shorter time frame than once before.
"In a week on one property, we had 50 email enquiries and that's as busy as I've seen it in 15 years of real estate," Mr Robertson said.
"Currently, the market is tight and moving fairly quickly. Many properties have been leased prior to hitting the market, while others are spending just over a week, an average of nine days on the market, before being leased," Signature Properties director, Edwina Smith said.
"The average days for residential properties is about 30 and rentals typically last four to seven days," Mr Palmer said.
"Some of the people who have B&Bs and overnighters put their properties back into the general market during lockdown so they may have created a little bit more availability in Mudgee but we haven't seen that in Gulgong," Mr McGregor added.
Method of selling altered
The method of selling has also been altered in the current market with displaying an asking price a practice of the past.
"One major shift has been a move away from private treaty sales where a property would have a displayed asking price, to an auction either on site or online and sales by negotiation," The Agency property partner, Damian Kearns said.
"There continue to be several off market sales where owners sell to the first buyer an agent brings through the door. I strongly advise against this because any seller that does not take their property to market at the moment is likely leaving money on the table.
"As a seller it is essential to capitalise on the competition among buyers."
With purchasing a standing home highly competitive, some have opted to build, but Mr Robertson said "builders are run off their feet, some have a two year wait".
"There's plenty of land available, that's not the problem, there's just such a demand for them."
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