Northern Rivers Real Estate Trends - October 2023

As of October 2023, this region has witnessed the lowest yearly growth in home values among the 25 largest non-capital city regions in Australia, with values plummeting by a staggering 20% year on year. Similarly, unit values decreased by 11%, tying for the lowest spot in these 25 regions with Launceston & North East Tasmania.

While these figures might initially appear daunting, they also signify an intriguing opportunity for prospective buyers. The current market presents a chance to enter the Northern Rivers real estate market at a time when prices are considerably lower than they have been in recent years.

Home Value Trends: Opportunity is Now

The Northern Rivers region's home value trends have been notably bleak. A 20% year-on-year decrease in home values is concerning and reflects the challenges the market has faced. It's important to delve deeper into these trends to understand the implications for potential buyers and investors.

Unit Value Trends: One of the most affordable Regions in Australia

Unit values, too, have experienced a decline, dropping by 11% year on year. This trend is shared with Launceston & North East Tasmania, underlining the uniqueness of the current real estate climate in the Northern Rivers.

Dwelling Sales: A Market in Flux

Dwelling sales data for May paints a picture of decreased activity in the Northern Rivers region, with sales down by 26% year on year. This figure becomes even more significant when compared to the five-year average, which was 24% lower.

CoreLogic

To better understand the market dynamics, let's break down the sales data for houses and units into price brackets:

House Sales by Price Bracket:

• $200,000 or less: 2.3%
• $200,000 to $400,000: 7.5%
• $400,000 to $600,000: 11%
• $600,000 to $800,000: 15%
• $800,000 to $1,000,000: 16%
• $1,000,000 to $2,000,000: 36%
• $2,000,000+: 13%

Unit Sales by Price Bracket:

• $200,000 or less: 1.4%
• $200,000 to $400,000: 8%
• $400,000 to $600,000: 24%
• $600,000 to $800,000: 28%
• $800,000 to $1,000,000: 17%
• $1,000,000 to $2,000,000: 18%
• $2,000,000+: 3%

Home Value Index: Market in Transition

As of July 2023, the Home Value Index for the Northern Rivers region continued to decline. Both house and unit values decreased year on year, with houses seeing a substantial 20% drop and units experiencing an 11% decrease.

The upper quartile for a house dropped by 23%, while the lower quartile decreased by 18%. The median value for a house in the Northern Rivers region now stands at $899,408. For units, the upper quartile decreased by 15%, but the lower quartile saw an 18% increase. The median value for a unit in the region is $686,710.

Time on Market and Vendor Discounting

Vendor discounting and time on market are essential metrics for understanding the market's health. For houses, vendor discounting was -6%, and the average time on the market was 72 days, compared to the previous year when vendor discounting was also -6%, but the time on the market was only 44 days.

For units, vendor discounting stood at -4%, with units spending an average of 51 days on the market. One year ago, vendor discounting for units was -3%, and the average time on the market was 33 days.

Investment Opportunities

While the current real estate trends in the Northern Rivers region might seem challenging, they also present a unique investment opportunity. With prices significantly lower than in previous years, prospective buyers and investors have the potential to secure properties at more affordable rates. Moreover, considering the long-term prospects of the market and its historical resilience, this could be an opportune time to explore the Northern Rivers real estate market.

In conclusion, the October 2023 real estate trends in the Northern Rivers region present a complex but potentially rewarding scenario. Despite the recent decrease in home and unit values, the market offers opportunities for those looking to invest or buy homes at more affordable prices. Staying informed about market trends and seeking professional advice is essential for making informed decisions in this evolving real estate landscape.