2018 it’s a wrap

As we roll into the new year it's a great time for us to take stock and look back at 2018, a year of excellent sales results, team and network growth and exciting business developments.

Regional markets defy the trend

While we're surrounded by reports of a falling or softening real estate market our results really do tell a different story.

There's no doubt there's been a downturn nationally. According to the REIA for the September 2018 quarter the weighted average median price for houses decreased in all capital cities except Brisbane and Adelaide, and remained stable in Melbourne. Regionally though, it's quite a different story.

Many regional markets are currently outperforming the capitals. Ours was one that recently made the list of regional investment hot spots in Victoria, along with Shepparton, Bendigo, Ballarat and the Bass Coast area.

The easy commute to Melbourne with improved train and road links is helping drive this excellent result, so too are changing consumer habits, particularly digital habits.

With 24/7 access to information on the web, online real estate marketplaces and social media, consumers are no longer dipping in and out of the market. They're following, browsing and watching all the time and this has changed the landscape. Just a few decades ago December and January were a write off for real estate. But we've watched these months build to a point where they're now as busy as any other time of the year.

Sales results

During 2018 we sold 260 properties with a total value of approximately $112m. The peak in terms of price growth was around May but properties continued to sell for the list price and in many cases, well above.

People from metropolitan areas continue to be drawn to our region. Currently, around two-thirds of buyers are coming from the city. If anything, the drop in clearance rates in Melbourne seems to have spurred them on as they sense a gap in the market that might make it easier for them to get in, especially with interest rates still so low.

The balance of our work continues to be with locals downsizing or upsizing depending on their circumstances.

Both home and lands sales, including new developments, were strong and we've seen an increased demand for properties in the $800k – $1.2m range.

The north end of Castlemaine has performed better this year due in part we believe to the consolidation of the secondary school into one campus in the north. Historically, sales to the south have been stronger as the area is slightly closer to the town centre, but the north is definitely on the move.

New listings

Listings were strong for the year. After a slight drop in July there was a curve back up by September and solid supply through to the end of the calendar year.

Rentals and investments

With demand for rentals (both residential and commercial) high, supply and interest rates low it's a great time to get in if you're considering an investment property.

The Residential Tenancies Amendment Bill passed the Parliament in September ushering in the most significant changes to the rental market in the last 20 years. Full implementation of the more than 130 reforms is not scheduled until 2020 but our Property Management team is already working with landlords and tenants to ensure a smooth transition.

New developments

New land developments are selling extremely well with many, including the popular Diamond Hill and Midland Rises estates, down to only a handful of unsold allotments. The newer Grandview estate is also selling extremely well.

Blocks still represent excellent value for money, especially in comparison to the true land value of a house in the centre of town, so demand hasn't really wavered over the 12 months.

The boost these developments are providing to local employment and the economy is great to see.

Team growth and business developments

We welcomed two new people to our Sales team in 2018. Tim Noonan joined the business to service the Greater Bendigo region and Brooke Ginnivan, who has worked for us for the last 12 years in Asset and Property Management, joined the team in Castlemaine. We also welcomed Laura Miller back to our Property Management team after several years away from the region.

We ended the year with a bang with the launch of our new website. Completely flexible and optimised for mobile devices, the new site is a great place to go for not only up-to-date listings and everything real estate, but also information on our region, from town profiles to the latest news and developments.

So that's us for 2018. A big year all round for the market and the team and plenty to look forward to in 2019.