Residential Market Update - Cooma
Cooma residential property market shows resiliency in challenging times.
16th August 2023
The RBA has taken the foot off the pedal for the last couple of months and left the cash rate unchanged. This has provided some much-needed relief for mortgage payers, although it is likely we will see another increase between now and November.
To assess how this is affecting the property market in Cooma, let’s have a look at some statistics...
In the last 30 days
* New listings were down 51.52% and sales were down 57.58%
* Days on the market increased by 12.72%
* Asking price for dwellings remained static at 0.6%
* Similarly, the median house price remained static at $560,000
* Stock on market sits at 0.08% and building approvals at 0.24%
* Gross yields are 3.92% and the vacancy rate is 1.2%
So what does this all mean?
We saw the residential property market in Cooma peak in late 2022 with prices beginning a very slow downward trajectory from early 2023. From around March this downward trajectory eased (with an overall reduction in values of under 2%) and since then values have remained steady.
Currently the market is in a holding pattern with a significant reduction in new listings as many vendors wait for the RBA’s next move. The lack of new sales is also affected by seasonality with winter typically being a slower time.
Cooma’s very low ‘stock on market’ percentage coupled with the low building approvals indicates a shortage of housing supply, as we all know. This undersupply will continue to help buffer Cooma from significant falls in property values as, for the foreseeable future, demand is going to outstrip supply. Additionally, the favorable rental yields coupled with a low vacancy rate will continue to appeal to investors.
To summarise the residential property market in Cooma is highly resilient, and while we have seen some reduction in property values it has been a very minor correction and coming off a very heated market. We expect the property values will remain stagnant for some time, with any significant reduction only likely in a situation where dwelling availability is increased substantially resulting in an oversupply, possibly in the next 3-5 years.