This year’s “spring lift” might not be as pronounced as other years, according to local property experts.
The spring season usually sees more homes coming onto the market, in the lead up to summer.
However, the wealth of dodgy practices exposed by the banking royal commission earlier this year is likely to cause a shift in the property market.
Independent property valuer Chris Egan said there has been a decrease in the volume of residential sales in Wagga.
“There’s been a decrease in turn-over and this could be because of uncertainties surrounding whether interest rates will increase due to the banking royal commission and the tightening of credit policies,” Mr Egan said.
With three of the four major banks in Australia having raised their mortgage rates, the property market will likely enter a decline and more homes become available at a lower price.
CBA will increase mortgage rates by 0.15 percentage points, while ANZ said it would increase rates by 0.16, which they have justified due to higher funding costs.
This spate of interest rate increases have caused less buyers wanting to enter the market as their mortgage payments go up.
But it’s not all grim, Wagga is still attractive to investors seeking higher yields than the major cities.
While LJ Hooker real estate agent Jason Pearce said the property market in Wagga hasn’t lifted yet, he argued that spring has only just started.
“The bank raising interest rates won’t help even though this is only a small rise,” he said.
“However with the weather improving, we should start to see more people entering and becoming active in the market.”