Fitzpatricks Real Estate

The beginning of 2008 saw a strong start to the Wagga Wagga real estate market. We experienced a slower period and longer time on the market during the middle of the year which can be associated to the world wide economic crisis.

Riverina residents were breathing a sigh of relief during mid-October when the Australian Government announced its $10.4 billion stimulus package to save the Australian economy for meltdown. The package unveiled the tripling of the First Home Owners Grant (FHOG) for new dwellings to $21,000 and the doubling of the original boost for home buyers who purchase an existing property to $14,000. This was a real boost for the slowing Wagga Wagga and Australian market and was definitely a turning point in the 2008 housing market.

From July 1st 2000 to September 30th 2008 Wagga Wagga was ranked the nineteenth highest to take advantage of the latest Government incentives to help purchase their first new home. Ahead of Wagga were Liverpool, Campbelltown, Wentworthville, Blacktown, Cabramatta, Gosford, Mt Druitt and Bankstown.

During the month of October Wagga’s real estate market saw a general increase in property listings. With homes priced for $200,000-$350,000 being the most popular. The last quarter saw a slowing in the $400 – 550,000 price range, however with the Christmas and New Year period, Wagga Wagga saw a major improvement in this part of the market.

According to domain.com.au the median Wagga Wagga house price for 2008 was $277,000 with the median unit price being $245,000. The average days a Wagga Wagga house was on the market was 155, this was slightly lower for units at 146 days. Unit sales were generally strong throughout 2008, particularly investment units up to $220,000 and lifestyle apartments up to mid $300,000’s.

Purchasers and vendors received a confidence boost with the reduction of interest rates from August 2008, with interest rates continuing to fall during the latter part of the year. By August the value of Australia housing loan approvals fell by 23 percent.

Wagga’s property management housing has remained very strong with vacancy rates ranging from 2.5 – 3%. Your investment property magazine recently listed Wagga Wagga as a NSW rental hot spot calling it a “fast growing regional centre”. In 2008 Wagga Wagga saw a 15.2% increase in the average cost of renting a two bedroom unit. There is a strong demand for rental properties in Wagga Wagga, which can be attributed to the influx of new residents at Charles Sturt University, RAAF, Army Base and the upgrade of the Hume highway. The future looks promising for the Wagga Wagga real estate market, with interest rates predicted to fall to levels not seen since 2001. We are in for an interesting 2009 Real Estate market.

Disclaimer: The opinions and views expressed are those of the writers and do not necessarily reflect the opinions or views of the current Wagga Wagga real estate market

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