Consumer mood has taken a knock, and interest rates have just been hiked for the first time in more than a decade. As a result, there is a lot for sellers to think about right now.

Is it preferable to take advantage of the latest selling conditions, as prices are still at their peak? Or is it best to wait and see how the market unfolds?

While many believe this boom phase is nearing its end, many cities and areas continue to thrive. However, there is always some caution when inflation is high at the beginning of an interest rate hike cycle.

The decision to sell is influenced not only by current market conditions but also by the urgency of your need. For example, some people need to move into a larger home, while others may find that waiting for the market to improve is an excellent way to release additional capital before retiring.

Let's review the current state of Australia's real estate market and why now is the best time to sell property in some areas like the Upper Hunter, NSW.

The Current State of the Property Market in NSW

According to the most recent CoreLogic statistics, monthly growth has come to a halt in some areas, while it has slowed significantly in others since 2021. However, the statistics also show that the median Australian house price increased by 0.6% in April 2022.

Meanwhile, in an Australia-wide report, the Upper Hunter, Wagga Wagga, and Griffith were rated as the top regional markets in NSW, delivering affordability and high development potential.

With Upper Hunter topping the list, the report shows that the three NSW areas are the best in the state because of their low unemployment rates, infrastructure investment, affordability, and rental return.

The Upper Hunter ranks first because of its high property prices and low unemployment. One of the primary causes of the region's success, according to PRD, is its low unemployment rate of 2.4%, which is lower than the NSW average of 3.9%.

Its price rise has been equally spectacular. Over the past ten years (2012-2021), average property price growth in the Upper Hunter LGA has risen incredibly high for unoccupied land, with an increase of 48.6%.

The report indicated that strong growth in population in the wake of the COVID-19 tree shift trend and low vacancy rates would help propel future price growth. However, rental yields remained well above Sydney at 6.4 percent for units and 6.1 percent for houses.

Upper Hunter LGA is an attractive regional market for alternative investment because of its low prices, higher rental yields, and higher occupancy rates. The Upper Hunter LGA will have $211.7 million in development throughout 2022.

Upper Hunter Market Update 2022

In the fourth quarter of 2021, Upper Hunter recorded a median unit price of $237,500 and a median house price of $425,000. This equates to yearly median price growth of 7.0 percent for units and 21.3 percent for houses from Q4 2020 to Q4 2021. In addition, total sales in both markets surged by 25.4 percent for homes summing to over 262 transactions and 96.6 percent for units, making it a total of 57 sales between Q4 2020 and Q4 2021. Increased sales volumes and double-digit price growth imply genuine returns on investment. As a result, it is a perfect time for investors and downsizers to take advantage of the market and buy in Upper Hunter.

Between Q4 2020 and Q4 2021, average vendor discounts tightened for both property categories, falling to 0.0 percent for houses and -0.8 percent for flats. As a result, upper Hunter market conditions have shifted dramatically in favour of sellers, with buyers having less bargaining power and paying close to the original listing price.

House rental returns in Upper Hunter were evaluated at 4.8 percent in December 2021. In addition, the median property rental value increased by 7.5 percent, while the average days for a property on the market decreased by -12.5 percent. Strong rental yields and growing median house rental prices are:

• Positive signs for investors.

• Indicating a stable rental market.

• Making it a good time for sellers to list their property.

Also, in December 2021, Upper Hunter recorded a vacancy rate of 0.6 percent, which was relatively lower than the Hunter Region (0.7 percent) and significantly lower than Sydney Metro (2.6 percent). Furthermore, vacancy rates in Upper Hunter have been at 1.5 percent for the previous 18 months, significantly below the 3.0 percent healthy guideline set by the Real Estate Institute of Australia. This demonstrates that there is a solid amount of rental demand in Upper Hunter, indicating that investors should expect a favourable investment climate.

Bottom Line

Why should I sell my home now? We know that’s the question running through your mind. We understand if you're still hesitant about selling. It's a big decision that requires careful consideration as you assess the benefits and setbacks of both scenarios. However, because of the Upper Hunter's low unemployment rate, infrastructure investment, affordability, and rental return, this region attracts many people from across the globe. Towns like Scone, Muswellbrook, Aberdeen, and Murrurundi are gaining their ground in the real estate market with their state-of-the-art infrastructures, low unemployment rates, and affordability, making now the ideal time to sell.

Even though the market appears slightly unstable, keep in mind that everything is relative, and the market never stops moving. Therefore, houses will always be available for sale and people looking to buy.

It's also important to acknowledge that conditions will differ from one area to another. Hence, it's essential to comprehend your local market - and to do so, you will need to get very specific.