Property price growth in Australia’s 25 largest non-capital city regions has slowed from a peak of 6.6% in April 2021 to 4.7% in the three months to April 2022, a new report has shown.
CoreLogic’s quarterly Regional Market Update found dwelling values across the combined regions jumped 23.9% in the first four months of 2022, outpacing the combined capital city dwelling growth rate of 14.6% for the same period.
Byron Bay finance broker Sean Wroe (pictured), who runs brokerage Sakura Finance, said brokers need to help their clients by educating them about changing property prices and understanding the local market.
“As brokers, we need to be on top of what is happening and have good working relationships with local real estate agents, especially in regional areas,” Wroe said.
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“I have been working in Byron Bay for the last three years and when I first moved to the area I would attend agent’s open houses and listen to them speak with buyers and learn more about the local property market.
“We also have access to CoreLogic property reports, suburb reports etc, so often when my clients are looking to purchase, I find it helpful to review this information to understand what my clients are looking for at which price point – I think this adds to a broker’s skill set.”
Wroe said the Byron Bay property market is still performing extremely well with not enough supply, which increases the value of properties.
“I mainly deal with first home buyers, and it is extremely difficult for them to get into the Byron market,” Wroe said.
“Many are pushing inland to more affordable areas such as Lennox Head and Ballina. The idea of purchasing and living in Byron Bay has an elitist profile, so in that sense it is very different to other markets in regional Australia.”
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Wroe said with signs of future interest rate hikes, some of his first home buyer clients are concerned.
“They are unsure whether they can get into the property market at such a high price point, however when you work with them and explain the process and educate them on what could happen, it is reassuring for them,” he said.
Wroe’s advice for regional mortgage brokers grappling with high property prices is to educate themselves and provide the right information to their clients.
“Position yourself as a local expert and make sure your client understands what is happening in the marketplace,” he said. “Education is key.”