Samford Valley Property Market for 2017

Well it’s a new year, so how did the old one fair for property prices here in Samford Valley?

Well it was a mixed bag with high growth of +9.84% to the Samford Village, Samford Valley saw +2.87% growth, which is just above inflation and Highvale saw a -1.70% drop in Median prices.

If we look in detail at each of the suburbs over a ten-year period, we get a better long term view.
Wights Mountain has seen a drop over the last 24 months in median house prices by -7.8% to $825K but it should be noted a spike in median prices occurred in 2014 of 26.8%. So, the price changes should be looked at over the decade. With Wights Mountain the 10 year median shows a growth of 15%. These figure do not take into account inflation though. If we factor in inflation at an average of 2% per year Wights Mountain house prices should be $854K, so as you can see in real terms the growth is still a negative.

Below is a table of 2 year growth and 10 year growth in percentage. If the growth percentage over the ten years has not been 22% or above then the property value will have fallen overall when inflation of an average of 2% per year is taken into account.

From the table above only four suburbs had growth above inflation over ten years. Of these Yugar would be considered an anomaly as the two year growth is based on very few sales in 2016 (3) and these will have distorted the figures. What is telling is Samford Village with the smaller land sizes is the area with the biggest demand and potential for continued house price growth well above inflation.

As for the coming year we do have some potential headwinds going forward with possible bank mortgage rates increasing. This will be driven by US Federal Reserve rates rising increasing Australian banks borrowing costs. This will have a knock on with demand and buyers ability to borrow. Rising rates historically has a dampening effect on house prices causing prices to level out over the year or in some areas even drop.

If you would like to discuss your option of selling in the coming months then why not talk to the Samford property market experts here at Fox & Co.

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