Central Coast buyers are starting to snap up bargains with buyer activity slowing as city investors exit the market and mortgage restrictions take hold. Mortgage application growth for NSW has slowed with data released today showing only a 2.4% increase on the previous quarter, hinting that the housing market may be cooling.
Across Australia, the number of mortgage applications in the three months to June across Australia were down 0.9% from a year ago. This is the second consecutive quarter of easing growth in mortgage applications, a clear reflection of tighter lending restrictions.
Central Coast property market slowing
With the Central Coast proving popular with investors, the region is showing signs of less buyer interest because of the lending restrictions placed on investors and foreign buyers. Even home buyers are finding it more difficult to secure a mortgage due to tighter credit policies and a push to move home owners to P&I repayments rather than interest-only.
Mortgage interest rates for investment purchases are now generally 1% higher than for owner-occupied properties, so the cost of funds for investors is much higher than it used to be. And securing an interest-only mortgage for an investment property is even more costly and difficult to secure as banks are starting to automatically decline mortgage applications based on this criteria.
The Central Coast was seen to be a great region for investors due to the low property prices and strong rental returns, but as cost of funds have increased for this buyer group, rental yields are diminishing making Central Coast hotspots like Gosford, Wyoming and Woy Woy less attractive.
Where are the property bargains on the Central Coast?
As the First Home Buyer stamp duty exemptions took effect on 1 July, real estate agents have swarmed on sellers within the $350,000 to $650,000 price bracket, encouraging them to hit the market to take advantage of the influx of First Home Buyers (FHB). Unfortunately, as FHBs only represent a small percentage of the market and with investors declining, we are now seeing a good supply of properties but experiencing lower buyer demand.
Top Central Coast suburbs with low property prices and high supply
- Hamlyn Terrace has 144 properties for sale
- Umina and Umina Beach has 78 properties for sale
- Woy Woy and Woy Woy Bay has 68 properties for sale
- Gosford currently has 60 properties for sale
- Gorokan has 49 properties for sale
- Terrigal has 46 properties for sale
- Berkeley Vale has 21 properties for sale
- Wyoming has 19 properties for sale
Central Coast mortgage broker
In a market where mortgages are harder to secure approval, working with a Central Coast mortgage broker is even now more important. A mortgage broker like Mint Equity who is established and knows the Central Coast property market will be able to help mitigate any potential issues when it comes to securing a mortgage.
Property valuations are a large consideration when securing a mortgage for a new purchase, and the team at Mint Equity know which lenders use which valuation companies, so we can provide inside information as to which lender will provide the most favourable outcome.
Always secure a pre-approval before going property shopping so you know your maximum borrowing capacity and have confidence in the negotiation process.