CoreLogic's data showed that regional home values fell by 0.8 per cent in July, the first drop since 2020.
Subscribe now for unlimited access.
or signup to continue reading
Has the weakness spread to the NSW Far South Coast?
Narooma market softening
Ben Bate, principal of Ben Bate Real Estate, said he was seeing early signs of a pull back in prices.
"We have seen a pull back in buyer demand from what it was in the Easter period.
"The 'fear of missing out' appears to be fading."
That FOMO saw the median house price in Narooma increase by 100 to 120 per cent over the last two to three years, he said.
Mr Bate said some buyers were concerned about where interest rates will peak, as well as cost of living pressures and higher mortgage costs.
Based on his experience of seeing multiple property booms over the last 35 years he said it would be reasonable to suggest that prices will pull back.
"We are starting to see it," Mr Bate said.
READ ALSO:
Bermagui levelling out
Julie Rutherford, principal of Julie Rutherford Real Estate, said in her 24 years of real estate, prices never kept going.
"There is always a point when buyers can no longer afford it and that is happening now."
Ms Rutherford said Bermagui housing prices peaked in the March quarter 2022.
There had been an extraordinary set of circumstances affecting the market, she said.
First there were the bushfires leaving people without homes. Some people, particularly older ones, did not want to rebuild and wanted to buy existing houses so "that wiped out stock".
Come COVID-19, everyone wanted to move from cities and into regional areas.
The working from home phenomenon saw more young people and young families move to the area.
"So lifestyle changes and the fires pushed up demand, but people haven't moved away from the area so supply was depleted," Ms Rutherford said.
"We are now seeing a levelling off," she said. "It is a bit more of a normal market."
Bega booming
In contrast the Bega market remains very strong.
"There is a genuine lack of supply," Paul Griffin, principal of LJ Hooker Bega, said.
"There have been a couple of record sales in the last two months."
At the high end of the market, people continue to move to the area from Sydney, Melbourne and Canberra "because we represent really good value for money".
People from the Central West move to the area for a sea change.
"Farmers are moving to the coast for early retirement and family succession and they are looking at rural properties too," Mr Griffin said.
He said the Bega property market was extremely stable, which he attributed to the number of jobs in the area.
"We have the cheese factory, the Bega Valley Shire Council and the hospital," Mr Griffin said. "They are the biggest employers on the coast and all are based in Bega."
He said Bega had a population of 6500 yet more than 3500 children go to school in Bega.
That is explained by the fact "closer to 30,000 people are living in the surrounding area", Mr Griffin said.
"Both council and the state government are pushing for Bega to be a regional centre.
"That would be fantastic for the local area because it would mean more opportunities for our kids to be educated locally and work locally.
"If there are no educational and employment opportunities, we lose our kids and the population dwindles."
