A drop in Camperdown’s real estate prices over the past 12 months equates to an “adjustment that had to happen”, according to one local agent.
James H. Monk director Kevin Gleeson said prices were now at a more realistic level.
Quoting statistics provided through rpdata.com (Australia’s leading property information and analysis service), Mr Gleeson said a number of consecutive years of substantial growth simply could not be sustained.
“There was substantial growth in Camperdown’s median house prices from 2002 until 2007,” he said.
“In 2002 the growth was 27.5 per cent, in 2003 it was 30.7 per cent and in 2004 it was 21.7 percent.
“That couldn’t continue, there had to be an adjustment and that’s what’s happened.
“It’s not a bad thing though, it just means the market is more in line with where it should be.”
According to the rpdata.com figures the mean price of Camperdown homes dropped 1.1 per cent in 2008, 5.3 per cent in 2009, rallied 3.9 per cent in 2010 and then dropped 5.4 per cent in 2011.
Figures also show that just 40 houses sold in Camperdown in 2011 and 45 in 2010, compared to a high of 87 in 2003 and 85 in 2004.
Mr Gleeson said the lack of demand would have had a direct impact on the prices.
“The low interest rates would also have had an impact,” he said.
“When interest rates are low the banks tighten up their lending criterias, which means buyers have to have the full deposit.  That in turn can exclude a few from the market.”
On a brighter note, Mr Gleeson said Camperdown’s housing prices were now more realistic.
“The price adjustment was necessary,” he said.
“And we’re already starting to see positive signs and movement in the market.
“For one thing there is a lot more buyer inquiry now.
“It’s actually a good time to get into the housing market.
“Australia’s is a growing population and there are still a lot of people looking for a tree change.
“And this area is only just now starting to be developed, so there is great potential.”
Mr Gleeson also highlighted the rental market as well worth investing in.
“According to the figures 24 per cent of Camperdown’s population is renting,” he said.
“That’s a substantial portion of the population and equates to great opportunities for investors.”
Current real estate prices for Camperdown see ‘lower end’ properties ranging from $110,000 to $165,000 and ‘mid range’ properties offered for between $165,000 and $240,000.
Elders Real Estate agent Robert Rickard said that while mid range prices had dropped the lower and upper end of the market were selling well.
“There are still plenty of first homebuyers that are coming into the market at the lower end and I can see that trend continuing,” he said.
“We’ve also had some good sales in the upper end, Penzance and Naringal among them.
“In fact I would say the market has remained steady in the upper end for the past couple of years.
“There have been some terrific properties come onto the market and they have sold.”
Mr Rickard said Camperdown’s reputation as a picturesque historic town kept its appeal for buyers.
“Couple that with the services the town offers and that appeal is only strengthened – the rail service to Camperdown, its close distance to the coast, a well equipped hospital and good schools.
“Buyers who initially consider Warrnambool or Geelong, quite often find Camperdown a much more affordable alternative because the cost of living here is so much lower.
“There are definitely plenty of people who think Camperdown is a great place to live and invest.”