The Central Coast property market is experiencing an interesting phase in 2024, with some notable trends emerging. As a local buyer’s agent, I’ve been observing these changes closely, and today I’d like to share my insights with you.
Low stock levels currently characterise our market compared to the five-year average, though we’re starting to see a slight increase as we move into spring. Prices have remained relatively stable, with small, steady growth across most property types.
In this update, we’ll explore the current state of our local real estate market, including buyer and seller behaviours, factors influencing market stability, and what this means for those looking to buy or sell on the Central Coast.
I. Current Market Conditions
Stock Levels
Currently, we’re seeing lower stock levels compared to the average over the last five years. This means fewer properties are available for sale on the market. However, there’s a silver lining—stock levels are increasing slightly. As we move into spring, we expect to see more properties coming to the market, which is good news.
Price Stability
Despite the low stock, prices have remained fairly stable. We’re seeing small, steady growth across most property types. It’s not uniform across the board, though.
- Some properties are experiencing minor price reductions, often due to reduced demand in their category.
- Certain acreage properties are facing challenges, mainly because of the high maintenance costs associated with them.
- On the flip side, acreage properties in sought-after areas and locations are still performing well.
This price stability is closely linked to the current stock levels. With supply remaining low and demand holding steady, we’re seeing a market where demand slightly outstrips supply for most property types, helping to maintain price levels.
II. Buyer and Seller Behaviour
Buyer Caution
Despite the stable market conditions, buyers are showing a notable level of caution. This hesitancy can be attributed to several factors:
- Economic uncertainty: Both international and local economic conditions make buyers more cautious about committing to large purchases.
- Rising cost of living: With tighter household budgets, potential buyers are more conscious about their spending decisions.
- Price sensitivity: Buyers are increasingly focused on getting the best value for their money. They’re more likely to negotiate or look for cheaper options before making a purchase.
For example, buyers are particularly vigilant with properties that have been on the market for an extended period. They see these as opportunities for negotiation, aiming to secure a better deal by highlighting any perceived issues or reasons the property hasn’t sold yet.
Seller Expectations
We’re noticing a growing gap between seller expectations and buyer willingness to pay. Many sellers are still expecting higher prices than the current market is willing to bear.
This disconnect is creating an interesting dynamic in negotiations. Typically, a seller might start with a higher price and a buyer with a lower offer, with the expectation of meeting somewhere in the middle. However, in the current market, that middle ground is often closer to the buyer’s initial position than the seller’s.
III. Market Stability Factors
One of the key factors contributing to the market’s stability has been the Reserve Bank of Australia’s (RBA) management of interest rates. Throughout 2024, there have been no interest rate changes, which has helped maintain a level of confidence in the market.
Although a rate drop might not occur this year, there’s speculation that it could happen in November. Such a move could reinvigorate buyer confidence and possibly spark a new wave of activity in the market.
Now, you might be wondering if all this means a property market crash is coming. In my opinion, it doesn’t. Here’s why:
- Supply and Demand: We have more demand than supply right now, which keeps driving prices.
- Building Approvals: There’s been a slowdown in new building approvals, meaning less new stock is coming to the market.
- Population Growth: Our population is growing, both from within Australia and from immigration. We’re simply not building enough new houses to keep up with this growth.
IV. Property Performance Trends
Quality Properties
Quality properties are still attracting significant competition and often selling for a premium. When a high-quality property hits the market, especially in areas with little stock available recently, it tends to draw a lot of attention. It’s not uncommon to see 30 or 40 potential buyers at an open home for these sought-after properties.
Less Desirable Properties
Properties that don’t tick all the boxes are facing more challenges. These might include properties that weren’t priced correctly from the start, homes that need significant work, or properties in less desirable locations. These properties often sit on the market for longer periods, and sellers may need to consider price reductions to attract buyers.
V. Advice for Market Participants
Tips for Sellers
- Be realistic with pricing. In the current market, it’s crucial to price your property in line with market expectations.
- Consider what you can do to make your property present better. This could involve minor touch-ups or major renovations, depending on your property and budget.
Tips for Buyers
- Do your research to understand current market conditions. This knowledge will help you make competitive offers on quality properties.
- For properties that have been on the market for a while, there may be room for negotiation. Buyers are increasingly looking at these properties as opportunities to secure a better deal, especially if the property has issues that could be leveraged in negotiations.
- Consider your long-term plans when buying. The costs associated with buying and selling property are high, so it’s often better to buy a property that will suit your needs for the longer term.
Conclusion
The Central Coast property market in 2024 presents a unique landscape with opportunities for both buyers and sellers. While there are challenges, such as economic uncertainties and a gap between buyer and seller expectations, there are also factors keeping the market stable.
Remember, what’s most important is your individual circumstances. It’s important to match your long-term goals, personal financial situation, and lifestyle needs when making a buying or selling decision.
If you’re considering entering the market, now could be a good time—especially if you find a property that meets your needs and fits your budget.
For sellers, success lies in realistic pricing and presenting your property in the best possible light.
If you’re looking to buy a property on the Central Coast, I can assist you with in-depth market analysis, property searching tailored to your needs, and expert negotiation to secure the best deal.
Want to stay up-to-date with the latest market trends? Subscribe to our monthly newsletter for regular updates and insights on the Central Coast property market. And if you’re ready to make a move, get in touch today. I’m here to help you explore this balanced market and achieve your property goals.
