Tamworth home values decline as drought hits hard

And statistics released today show our region is in the bottom ten housing markets in the country. The median home in our New England North West region lost 0.5 per cent of its value over the last year.

Tamworth Regional Council Mayor Col Murray said the drought was to blame for the dried-up housing market.

MORE NEWS:

"It's part of a cycle and cycles come and go," he said.

"All sorts of external influences have a bearing on a regional economy. We would much rather it be the other way but the reality is this is, I think, part of the drought."

Just 2753 homes were sold in the region in 2019, a drop of 15.7 per cent compared to the year before.

Mr Murray speculated that many of those sales might have been brought on by financial stress caused by the drought, driving down median prices.

But he said there are signs of green shoots.

Council development applications statistics show people are building fewer new homes, but business is investing more in fit out of new commercial enterprise, he said.

Council General Manager Paul Bennett predicted home values would turn around as rainfall hits paddocks.

"I think we'll see a huge uptick," he said.

"Cities like Tamworth are recognised for a whole range of factors - number one, the quality of living, the access to schools and sporting facilities and other cultural activities.,

"It's been a great city for so long over a consistent period of time that people know that there's going to be jobs here in the future."

He pointed to council's Blueprint 100 plan, a scheme that plans for a city of 100,000 by 2041, as a source of long-term business certainty.

Tamworth endured its most severe drought in history over last year. Recent rainfall has raised hopes of an end to the unprecedented drought.

Of the 42 sub-regions of rural Australia, 13 recorded a drop in housing values in 2019. Core Logic said the worst housing markets "were typically in the rural agricultural areas where the drought has had an adverse effect on economic conditions and local housing demand".

Homes in outback Queensland, the worst-performing region in Australia, lost 21 per cent of their median value.

Median Tamworth home values have increased 10.8 per cent over the last five years. The median renter pays $350 a week. Tamworth units gained 2.4 per cent value over the last year.