Tamworth Property Market Update 2nd Half of 2019
In Q3 2019, Tamworth recorded a median house price of $339,500, and a median unit price of $185,000. This represents annual (Q3 2018 – Q3 2019) median price softening of -6.2% for houses and -35.8% for units (low unit sales make this a volatile statistic). At the same time total sales slowed, by -14.4% for houses (214 sales) and by -45.0% for units (11 sales). With properties becoming more affordable and less competition in the market, now is the time to buy.
Average vendor discount between Q3 2018 and Q3 2019 have widened to -6.8% for houses and tightened to -4.0% for units. Market conditions in Tamworth continue to favour buyers, where sellers are willing to negotiate below their initial listing price. Those looking for their first house can enjoy even higher discounts, thus now a good time to enter the market.
Over the past 12 months, house rental yields in Tamworth slightly tightened to be at 4.9% in June 2019; well above Sydney Metro’s 2.9%. The house rental market is in quite a healthy position, confirmed by a steady demand for stock.
2 bedroom houses have provided investors with +3.7% rental growth annually, achieving a median rent of $280 per week.
Tamworth recorded a vacancy rate of 2.5% in June 2019, well below Sydney Metro’s 3.5% average. Although there is a healthier rental demand compared to Sydney Metro, an increasing vacancy rate over the past 12 months suggest landlords need to secure longer leases to mitigate vacancy risks.