Central West house prices will rise by less than 1 per cent in 2019, according to a recent forecast by Moody’s Analytics.
Moody’s Analytics, which used CoreLogic data for its forecast, said property values will increase 0.6 per cent in 2019 on the back of 4 per cent growth in 2018 and 5.3 per cent in 2017.
House values are expected to rise 2.1 per cent in 2020.
The Far West and Orana housing market, however, is expected to perform better than the Central West, according to the Fourth Quarter 2018 Housing Forecast Report.
Property values are expected to grow 2.6 per cent in 2019 and 7.1 per cent in 2020 in the Far West and Orana region.
Last year, the growth was around 4.5 per cent on the back of 0.3 per cent negative growth in 2017 in the Orana region.
Real estate agents in Bathurst, Orange and Dubbo say they might not see the same rises this year, but believe the regional markets are still going strong.
Raine and Horne Bathurst director, Grant Maskill-Dowton, said the local property market was inflated because it had received a lot of investors in the past two years.
“We had an overflow of investors into Bathurst in the past two years as Sydney prices were going through the roof,” Mr Maskill-Dowton said.
“It probably pushed prices a little higher than the average housing growth we have traditionally seen in Bathurst.
“Now the prices have come down in Sydney, it has put the Bathurst market back to what it was prior.
”We are back to what I call a traditional Bathurst market.”
Mr Maskill-Dowton said there are enough buyers in the market and this will keep prices steady.
Orange-based real estate agents are optimistic about the property market.
They expect house prices to grow around 2 to 3 per cent this year on the back of 8.9 per cent growth in the last quarter.
Century 21 Orange director of sales, Andrew Vogler, said the factors that pushed the market last year are still there and many people still want to relocate from Sydney.
“Orange is an affordable place and rental yield is good,” Mr Vogler said.
“We may not have the same growth we had last year, but it is likely to be better than other Central West markets, including Bathurst and Dubbo.
“This is because various parties have done a wonderful job in promoting Orange as a food and wine destination in the past 10 to 15 years.”
Ray White principal Libby Seaman said it is difficult to sustain 8.9 per cent growth for a long time.
“But the Orange market is still very strong and we have people coming from all walks of life,” she said.
“I can’t see Orange going backward; we will continue to go forward.
“We are not short of buyers and prices are not going down. We are only seeing a price correction for those properties which were over-priced.”
Bob Berry, a real estate agent in the Orana region, said prices have not changed in Dubbo in the past 18 months.
The current median price for a house is $361,000 and for a unit it is $275,000 in Dubbo.
“The Dubbo market is well-placed to maintain its current price level because of the economic activities and the state government infrastructure spending,” Mr Berry said.
“There is not an oversupply of property and the rental market is very stable.
“So I would look for a year of stability.”
Mr Berry, however, criticised the national media and people who prepare housing forecast reports.
“The national media is obsessed with the housing market,” Mr Berry said.
“We are hearing a description of the market plunging, but in most cases the description is coming from those who are not actually in the market or are real estate agents.
“There is no one Australian market. CoreLogic came out with a report saying the Australian housing market has fallen 4.5 per cent. That is clearly an incorrect statement because there is no single Australian market.”
Mr Berry said Dubbo and other regional markets are not registering the same falls as Sydney because they didn’t record the same growth.