Are million-dollar homes becoming more prevalent in the bush?

Just a few years ago, it was quite rare for a home in this part of the world to sell for seven figures.

Yet as of January 23, there are more than 20 properties for sale in Dubbo's postcode with asking prices exceeding $1 million.

Director and Sales Agent at SJ Shooter Real Estate, Samuel Shooter explained the rise in prices and high-end properties has been coming for years.

"There are a number of factors influencing both the higher prices being asked and the number of higher-end properties coming to market," he said.

"The first of these is the number of premium developments we've seen continue to expand. Within these developments, there are properties built to service those seeking the ultimate in luxury, ease and exclusivity and we're seeing a number of these being offered for sale recently.

"If you were to go back 10 plus years, such properties were not as prevalent.

"Secondly, during COVID we saw the cost of materials and labour increase significantly which in turn, caused the final build/purchase price to grow. Add to this the ease with which most buyers were able to secure a loan during COVID, and house prices across the board rose exponentially."

Mr Shooter also said the aggressive increase in interest rates by the Reserve Bank has made repaying loans more difficult.

There is no denying the pandemic forced people to move from the cities out into country areas and Mr Shooter believes it has had an impact on the Dubbo real estate market.

"It does appear we're seeing more and more high-end homes coming onto the market and the key thing we need to acknowledge is that the Dubbo real estate market we were used to, doesn't exist anymore," he said.

"Yes there will be periods of intense growth and demand and periods where things are slower, but due to factors like the number of large, quality built homes we have in Dubbo, the demand coming from relocating metropolitan buyers, downsizers making the decision to sell and the interest rate environment we're in at the moment, these high-end sales are here to stay."

It isn't just the high-end homes which are increasing in price, the median cost for a house in Dubbo is increasing.

Mr Shooter believes the low rental vacancy rate as well as a wide variety of school, health care and housing options have things looking bright for the future.

"Historically the Dubbo property market is resilient, maintaining a fairly steady upward trajectory," he said.

"Due to ongoing demand and being a primary service location for many regional communities, it has weathered the difficult times rather well. As one would expect, buyer activity is more subdued than in 2021, but open homes are still well attended, with qualified buyers keen to secure property early in the year.

"With a median price of around $540,000, we are still a very competitively priced marketplace, making it an accessible and strong option for owner occupiers and investors alike."