Tamworth property market to be determined by rain in 2020: HTW residential
Water, water, water! This will be the major determining factor over the next 12 months for how the Tamworth market performs, according to the latest Herron Todd White (HTW) residential report.
The valuation firm asked their valuers to give an educated outlook on the residential market in their service areas.
As the drought continues to ravage the state, the government recently announced funding for a new dam to be constructed for Tamworth’s water supply as well
as a direct pipeline from existing water sources to the town treatment centre.
"This has gone a long way in shoring up the town water supply as well as increasing confidence in the town, but as they are yet to be completed we are not out of the woods yet," the valuation firm commented.
Despite the drought, the real estate market in Tamworth has been holding up well, showing that Tamworth is no longer only reliant on the agricultural industry, however it is now clear that a slowdown has occurred with a noticeable increase in days on market.
While properties are still achieving fair market value with no drop in values noted, they are certainly taking longer to sell, perhaps a month longer than expected but still below a six month period.
"We expect this trend to continue throughout 2020 unless we receive some drought-breaking rain which will increase cash flow into the local economy from the surrounding agricultural industry as well as refilling the town water supply," the valuation firm said.
The extended selling periods currently being experienced may open up opportunities for the astute buyer if the vendor requires a quick sale.
"We would keep an eye on east, inner north and inner west Tamworth, as these areas can often be tightly held and have experienced good growth in past years," the valuation firm said.
On the construction side of things, the past year saw a decrease in construction with some of the larger local builders reporting up to a 40 percent drop in new homes. This may be more a reflection on how many homes they were doing previously, with smaller builders reporting more work than before.
"We expect this trend to continue in 2020 with a possible uplift as the new first home owners grant is enacted, requiring first time buyers to have only a five percent deposit and the government guaranteeing the other 15 percent.
"Overall we are expecting 2020 to remain stable but slower than the past few years with the continued drought. If we receive the rain we are praying for, we may see an uplift towards the latter half of the year."
A recent sale was a Calala four bedroom, two bathroom house situated at 3 Currawong Drive (pictured below).
It was sold for $368,000 in February.
Set on a 686 square metre block, the home features living spaces, outdoor slab, and double garage.
A four bedroom house with elevated views of Tamworth has been listed for sale with $375,000 hopes.
