We often get asked the question; “what is happening in the Wagga real estate market?”

There aren’t too many people who would argue that Wagga Wagga is experiencing a “Buyer’s Market”. There is currently an oversupply of property on the market, meaning there are more houses for sale and less purchasers looking to buy. This is resulting in longer period’s houses and units are sitting on the market.

Domain.com.au currently states the days on market for houses in Wagga Wagga is 115 days, while units are slightly less at 97 days on the market.

Buyer confidence is on the increase with the Reserve Bank of Australia (RBA) likely to be more conservative with interest rate increases this year, aside from an almost certain rate rise in August after the August RBA meeting. “The current softness in the economy is unlikely to stop the Reserve Bank from lifting rates, with governor Glenn Stevens flagging that the bank’s August board meeting could bring the next increase.” – The Australian

Investors are keeping a close eye on the market, hoping to buy with the potential of strong capital growth down the track as well as steady levels of returns Wagga has become known for.

To give you an example of how house prices are currently fairing we can compare sales for now and 12 months ago. A family home sold in Hilltop in April 2011 for $440,000 whilst 12 months ago the same property sold for 415,000. That’s a slim growth of 0.056% with very little capital improvement.  Another Hilltop home that sold in 2007 for $425,000 and is currently listed for sale at less than the purchase price.  A Kooringal property purchased for $310,000 in 2009 has just been sold for $320,000 (0.03%).  A Mount Austin home is currently on the market for $189,500 which is a modest $3,500 more than what they paid for it 5 years ago.  This means that Wagga is experiencing either slight growth, zero growth or slight decreases in market values.

Opportunities abound however for astute buyers, and all things being equal as in most markets, this means everything is relative.  Vendors may sell for slightly less than they expected, however if they are buying in the same market, there may be some advantages.

The other thought to finish on, is to remember that slight changes in market prices are much better than speculative markets with huge climbs and falls.  It allows for affordable housing, predictable conditions and steady growth. With prices flattening out or coming back slightly, First Home Buyers (FHB’s) should jump at the opportunity to find their new home.  The FHB market has a huge impact on the rest of the market as they allow for “upgraders” to make their next purchase, “downsizers” to make their next move and so on.