Geraldton real estate expert says buyers could be forced out of the market amid local house prices easing

A Geraldton real estate expert warns local conditions could force buyers out of the housing market, amid fresh data showing property prices are easing.

CoreLogic’s regional market update for February showed Geraldton as one of the strongest performers across Australia with a house price increase of 6.3 per cent in the three months to January.

Despite the growth being the highest in regional areas across the country, the three-month growth slowed by 2.6 percentage points from August.

CoreLogic Australia economist Kaytlin Ezzy said the markets in WA had slowed.

“Queensland and Western Australia markets have driven regional growth for the more than a year, however they are now clearly losing steam,” she said.

“The historically affordable mining markets of Gladstone, Townsville, Mackay and Geraldton, and the coastal markets of Busselton and Bunbury, have all seen significant growth over the past year, adding between $100,000 and $140,000 to their respective medians.

“While these markets continue to demonstrate strength, the slowdown in quarterly growth suggests that peak growth conditions in these areas may have passed.”

According to the data, Geraldton recorded the strongest 12-month growth (32.2 per cent), and the highest change in annual sales volume (42.4 per cent).

Activewest Real Estate principal Phil Sorgiovanni said the most telling data was the total for-sale listings.

According to CoreLogic, Geraldton had 394 listings, which was a 21.5 per cent decrease in the past 12 months, and 41.4 per cent below the previous five-year average.

Mr Sorgiovanni said the high demand and lower supply could affect buyers in a number of ways.

“Prices will continue to be pushed up due to demand and a lack of supply,” he said.

“Buyers may shift from established housing towards vacant land options now that build costs and times appear to be stabilising.

“Some buyers may be priced out or simply just miss out due to short supply and then be forced back into the rental market further adding pressure in an already tight market.”

Geraldton’s median rental price increased 1.6 per cent over the past quarter to $524 per week.

According to CoreLogic, the local vacancy rate was 2.9 per cent, up from 1.5 per cent a year ago.