RESIDENTIAL house sales in Bathurst have dropped by nearly 20 per cent compared to the same time last year, with several factors having an impact.
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From the start of the 2018-19 financial year to the end of October, real estate agents around Bathurst have sold a combined 310 properties.
The figure is well down on what was seen in 2017 and 2016, those years recording figures of 373 and 361 house sales respectively.
Century 21 Bathurst principal Troy Kearney said there were a number of contributing factors, one of which was the decline of Sydney house prices and uncertainty of the market moving forward.
“With the mainstream media publicising what is happening within metro markets this does create uncertainty within regional markets,” he said.
Also having a huge impact is banking royal commission, which has led to banks being more careful with lending money.
Mr Kearney said that first home buyers, upsizers and investors were finding it harder to get loans, as the requirements for borrowing money have changed.
“The banking royal commission, this has meant the banks have changed the way in which they lend money,” he said.
“I believe this in itself has slowed the market and the changes they have made are quiet dramatic.
“For example, the big four banks no longer lend money for self-managed super to purchase residential homes. This takes one whole section of the investor market out of the market.”
Professionals Bathurst sales specialist Mark Sullivan also felt the changes that have resulted from the royal commission were slowing the Bathurst market.
He said the banks had tightened the lending criteria, with a stronger focus on applicants proving disposable income.
“Cash is still available, but it is just taking a lot longer for people to get a loan,” Mr Sullivan said.
Another contributing factor both agents put forward was the amount of land that had become available after a long period without much on the market.
“Having land available to purchase means people can build what they want instead of buying what they need,” Mr Kearney said.
Mr Sullivan said there would be “a big explosion of building” in the next six months as a result.
Although the number of residential property sales has dropped, both agents believe Bathurst is still a very stable market and people can be confident in their investment should they purchase a property now.
“We’ve been very stable, we’re not subjected to the same fluctuation as the Sydney market. We’ve got quite a protected market here in Bathurst,” Mr Sullivan said.
Mr Kearney also said that there was no issue with filling rental properties, as his agency currently has the lowest amount of stock available on the rent roll since it opened.
“With a 0.9 per cent vacancy rate, this clearly shows people are deciding to stay in their rentals and continuing renting instead of purchasing at this present time – this is what uncertainty in a market place will do,” he said.