First-home buyers emerging in Blacktown in the aftermath of The Renovators finale
Blacktown estate agents – who have been in the spotlight this week following the auction finale of Channel Ten series The Renovators –are seeing first-time home buyers aiming to take advantage of the state government’s reduced stamp duty offering on established cottages before the waiver runs out December 31.
Terry Li, the estate agent who sold the fibro cottage to Channel 10 for The Renovators series, says the market has marked changing characteristics.
“In a short-term period we will be experiencing a strong local market demand from first-home buyers, as there are already a large number who want to take the advantage of the stamp duty waiver,” Li says.
“But early next year we will be experiencing a slower market as first- home buyers holds back and monitor the market movement.
“Investors have been on hold due to the lack of confidence in the share market. The past losses in the share market has yet to recover,” Li says.
He notes Blacktown is experiencing 4.6% annual growth, with a $365,000 median house price.
“The average discounting rate on houses at 7.1% makes it very affordable for the western suburbs, with a newly built shopping centre and train station upgrade and most recently car parking facility for the train commuters.
“The lowest for the suburb was back in 2007 with a $305,000 median price and a negative 4.7%.
“The market is gradually recovering,” he suggests.
James Lee at Comfirst Real Estate says the current market is still good.
“Buyers are mainly first-home buyers.
“I anticipate the market will slow down after the abolishment of stamp duty for first-home buyer exception from January 2012,” Lee says.
He suggests investors demand has slowed down in anticipation of a reduction in price after January 2011.
The properties in demand were priced between $350,000 and $400,000 for fibro houses and between $400,000 and $450,000 for brick veneer houses.
Lee doesn’t expect the Harold Street sale on The Renovators will affect the market.
Century 21 Joel Hollings, who assisted in the marketing of the $440,000 sale on The Renovators, says the market is relatively steady with a good mix of buyer and sellers.
He says the gap is widening between unrenovated houses and renovated ones, which he says is a good sign for a true marketplace.
“In good times some of the unrenovated homes sell for more than what we expect as buyers get caught up in the hype and do not research properly,” he suggests.
He says the auction result has shown the Blacktown has lost its old stigma and “will be a choice of many more families to come”.
“We see the market staying stable in the coming months, although some commentators have said the market will drop after the first home buyers stamp duty exemption drops off.
“However as Blacktown is the lowest-value area in our basin we believe people will adjust their budgets from the more expensive areas as seen during 2008-2009 GFC and travel back into our market, thus counteracting any downturn caused by first-home buyers dropping off.”
