Regional house prices still offer good value.
Regional house prices still offer good value. Photobuay

Houses are cheaper here, but there's one big problem

A LEADING housing industry expert says when famous people buy into a popular area, healthy house prices are sure to follow.

CoreLogic head of research, Tim Lawless, said the movie-star influence is alive and well, as reflected in the CoreLogic July 2019 home value index results, which looks at the three months to July 31.

"There an element of 'if Thor is buying here, if it's good enough for him, it's good enough for me'," he said.

"If we look at areas such as Byron, we have seen property values rise by 1.8 per cent over the past three months, so when you consider Sydney values were down by 15 per cent over the same period, it's the Hemsworth Effect in action."

However, Mr Lawless said for those seeking to escape the rat-race of stratospheric capital city property prices, finding an affordable new home was the easy part.

"By far the hardest component is finding a job," he said.

"Finding a property is much easier than a job in some of these regional markets, which is why we have not seen more growth.

"Regional housing prices are cheaper, as the job prospects are fewer and far between."

According to Mr Lawless, a number of factors are supporting the turnaround in housing conditions, however lower mortgage rates, improved access to credit, a boost in housing market confidence post the federal election and recent tax cuts are likely the primary drivers.

He said other factors include improvements in housing affordability and a reduction in advertised supply levels.

Core Logic's data-crunching showed houses in the Tweed dropped 5 per cent in value while those in and around Lismore were down only 1 per cent, he said,

Mr Lawless said it is also good news for those with less than a millionaire's budget.

"The market is so much broader than just Byron," he said.

"Lismore and other places in the hinterland have a wide range of pricing options from the top end to the substantially cheaper and the attractiveness is that there's something for everyone."

Mr Lawless said areas such as Lismore will benefit from high-speed broadband and employers of key companies realising the benefits of hiring works who can fly-in-fly-out or work remotely.