Tamworth property market sees higher buyer interest: HTW residential
The two biggest drivers of the Tamworth market at the moment are the historically low interest rates and the drought, which despite recent rain has on-going impacts, according to the latest Herron Todd White (HTW) residential report.
The past few years of drought have put a strain on the town’s water supply which despite recent rain has not increased by any significant amount. After having been on water restrictions for over 12 months, residents are wondering whether or not there is a long term solution for the future with Tamworth’s population expected to hit 100,000 by 2040.
While there are plans in place with a new dam and pipeline underway, confidence will remain low until these projects are completed. The economic effect of the drought saw less money coming into the property market which resulted in a slow-down, the report noted.
"Tamworth as a whole did not see a decline in property values, but we did see an increase in days on market, where houses that traditionally sold in one to two months were taking three to four," the valuation firm said.
The report suggests it is not all doom and gloom for Tamworth as the city still offers plenty of appeal for residents, with strong employment opportunities, relatively cheap housing and good services and amenities available.
Tamworth is a major regional centre and offers quality schools, good health services and a large pool of employment opportunities with blue collar, white collar and everything in between catered for.
"On top of this, a modern four-bedroom, two-bathroom, brick veneer dwelling can be had for under $400,000 (depending on the suburb), making Tamworth very attractive to those finding themselves priced out of the larger cities," the valuation firm said.
A four bedroom house situated in Tamworth CBD has been listed for sale with $399,000 hopes.
Set on a 656sqm block, the 9 Lilly Pilly Court home (pictured below) offers 2 bedrooms, open plan living, and fully fenced backyard.
It is positioned close to schools and shops.
This combined with recent rain and low interest rates has local agents reporting less days on market for sales and more buyer enquiry than experienced in recent months (prior to the rain). This higher buyer interest has not yet resulted in an increase in house values.
The government’s First Home Super Saver and First Home Loan Deposit schemes have seen first home buyers become more active in the Tamworth market.
Along with the low interest rates we are seeing more people selling to first home buyers and then upgrading, typically leaving South Tamworth, West Tamworth, Hillvue, Oxley Vale and Westdale and moving to Calala, North and East Tamworth, Moore Creek, Daruka and newer parts of Hillvue.
A Moore Creek house sitting on a 4,152sqm block was sold for $460,000 in February.
The four bedroom, two bathroom house is situated at 30 Barrington Drive (pictured below).
It comes with large open plan living areas, covered entertainment area, double garage, and three bay vehicle steel shed.
"Increased confidence in the local economy after the recent rain as well as low interest rates suggest that these trends will continue in the short to medium term. This may be thrown completely out of the window with the current COVID-19 pandemic, but excluding this we expect a slight increase in the property market over 2020."