Huge increase in average house prices across Hilltops
A new Domain report released last month has revealed the average house price across the Hilltops has surged to $315,500.
This figure is up a huge 17.3 per cent on December 2019 and 39.9 per cent since 2015.
Managing Director of Flemings Property Services, Justin Fleming, said a majority of that rise has come in the last 12 months.
"There have been eyes on the regions for some time and due to the coronavirus, people's appreciation of space has been heightened," he said.
"They are looking for possible movements, they haven't all of a sudden decided to leave the city, but they're people who thought they might do it in a year, two years or three years and are all of a sudden saying 'well let's do it now'.
"In addition to that, the share market at the moment is volatile because of the state of the economy and the world and interest rates are at the lowest they've been for many, many years.
"Borrowing money is quite affordable and out in these areas, property prices are more affordable.
"People can also work from home, they've worked out they don't have to be in the office all the time, so we are getting a bit of interest from Sydney and Canberra that don't necessarily need to be near the businesses that they work for.
"So that's contributing as well," he said.
The report states cities and towns across the region have experienced value increases from anywhere between 12 to 45 per cent.
House prices in Cootamundra-Gundagai have risen 42.2 per cent since 2015, while the Yass Valley has observed a 38 per cent increase.
The yearly trend in both local government areas was also positive, with Cootamundra-Gundagai recording a 18.7 per cent climb to $308,600, while in the Yass Valley house prices increased 11.2 per cent to $665,000.
Mr Fleming said he felt interest in those areas was helping to push the interest in more rural areas.
"The pressures that are coming on those regional centres is then creating pressure for the rural towns and villages, because people from them are spilling out a bit further," he said.
"I think the proximity of Hilltops to Canberra and Sydney is also very good, particularly Boorowa and Harden, which are less then an hour and a half from the centre of Canberra.
"I think people are identifying the Hilltops as a nice place to be and I think that's contributing as well, people visit and work out that it's quite a nice area, its reasonable proximity and its got all the benefits of the bush.
"Taking nothing away from any other country towns but for those and lots of other reasons this area appeals to people.
"People from metropolitan areas are discovering these regional centres and rural towns are here, are a nice place to be, have lots to offer, sophisticated and affordable therefore they are looking at it more than they ever have before."
He said there wasn't one type of property or customer enjoying the positive gains.
"There's people looking for investment properties, there's people looking for houses to live, people looking for small rural acreages to getaway to, people looking for small acreages for the lifestyle, large rural properties are really strong with the seasons and the level of interest rates," he said.
"Farmers and hobby farmers are in the market so it's everything, all types of property is getting interest from all types of buyers.
"All those people are creating a strong market.
"So demand is outstripping supply at the moment, therefore when a property comes on the market, it gets interest and it's selling in most instances for the asking price, as long as it's in line with the market, or above.
"It's pushing the price up a bit so we are dealing with a situation where we have to reassess where our appraisals are every time we go look at a house because it is a rising market."
The report itself also supported Mr Fleming's reasons for higher house prices in the regions.
"Record low interest rates have spurred buyer activity with cheaper credit easing the affordability of mortgage repayments," the report stated.
"Sellers have responded as more homes are listed for sale and more auctions held in the final quarter of 2020 compared to the same period the year prior.
"A rebound in buyer activity in the latter half of 2020 quickly absorbed the increase in new house listings.
"This has ultimately created competition between buyers, driving house prices higher."