Dubbo’s booming housing market looks set to continue for the foreseeable future, although not at the same high rate that saw average house prices increase $25,000 in the last 12 months.
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The latest figures from Australian Property Monitors reveal an increase of $10,000 in median prices for the June quarter to a record high of $320,000.
It was an increase of 3.2 per cent for the three months and an 8.2 per cent change over 12 months.
APM senior economist Andrew Wilson said he expected Dubbo’s market to slow down to around 5 per cent per annum in the medium term but with interest rates expected to remain low into 2015, he didn’t see the market slowing down too much.
“Dubbo is a market that has continued on the up and up. It was boosted by low interest rates and has undergone significant growth, almost 10 per cent. It’s not in the same category as Sydney, which is in a boom but it should continue,” Dr Wilson said.
“The biggest question for Dubbo is will affordability become an issue. If prices continue to rise to the mid-$300,000 mark it may price people out of the market. I don’t think growth of 10 per cent is sustainable, I think it will drop down to be in line with income growth, closer to 5 per cent.
“The market is generally a reflection of what is happening in the local economy.
A total of 646 properties were sold in Dubbo over the 2013-14 financial year and Dr Wilson said it was a decent number that was sustainable.
“There are always roadblocks to supply, especially during periods of high demand. Houses are only on the market for a short time and what happens is, real estate agents start saying there aren’t enough listings but it’s just because turnover is high,” he said.
Eight units were sold during the June quarter, not enough for APM to publish statistically reliable data.
Real Estate Institute of NSW Orana acting chairman Andrew Toole said despite the increases, Dubbo was still more affordable than other rural cities but more development would be welcome.
“We’re still seeing below-average stock levels and interest rates have been kept low so it’s not that surprising to see the average price rising,” he said.
“There is some land development occurring within the city which is a positive for the future.”