Regional NSW Housing: Prices Rise Despite Rate Hikes

Regional housing markets in New South Wales have experienced a year-on-year increase in median house prices, despite recent quarterly declines. The median house price in regional NSW saw a 1.2% decrease in the September quarter, settling at $820,000. However, compared to a year prior, typical regional homes are 2.6% more expensive.

Notably, some areas have seen significant annual growth. Dungog shire in the Hunter region recorded a 26.9% rise, reaching a median of $907,500. Inverell saw a 23.4% increase to $475,000, and Broken Hill rose by 22.7% to $270,000. These price movements are attributed to factors like limited supply and strong employment opportunities.

While higher mortgage rates and the cost of living affect all markets, regional areas are proving more resilient than capital cities. This resilience is partly due to underlying market fundamentals. Some city dwellers are relocating to regional towns for jobs in sectors like agriculture, mining, and healthcare, though growth has shifted away from previously booming coastal markets.