THE cooling Sydney market is beginning to filter through to the Central West with some locations starting to record a negative growth.
Property advisory and investment group Suburbanite recently released its growth report, which informs investors on areas they should think about avoiding.
The Central West locations to record a negative growth were: Dubbo, Parkes, Grenfell, Oberon, Nyngan and Boorowa.
Grenfell recorded the most significant fall with a -6.25 per cent drop, followed by Boorowa (-3.70 per cent), Nyngan (-1.33 per cent), Parkes (-1.10 per cent), Dubbo (-0.80 per cent) and Oberon (-0.50 per cent)
The downturn could be good news for those looking to get into the housing market in these locations, but less so for investors.
Suburbanite principal and property adviser Anna Porter said cooling real estate markets in Sydney and Melbourne were having an impact on the Central West.
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"The negative growth starting to filter through the Central Western region is off the back of a few good years in the market throughout the area," she said.
"With the market in the capitals of Sydney and Melbourne cooling off, this correction in the market is just starting to filter through to the regional areas of NSW and Victoria."
Ms Porter said most home owners and investors who purchased property in Dubbo, Parkes, Grenfell, Oberon, Nyngan and Boorowa during the past few years would have seen some reasonable growth in that time.
"Dubbo saw 11.2 per cent growth over the last three years according to CoreLogic data, and some of the suburbs such as Lithgow reports double digit growth last year alone, followed closely by Orange at just shy of 10 per cent for the 12 months," she said.
"This is a great outcomes given the more outlaying areas have been struggling with drought conditions, they have really pushed through this.
"So a small correction now is not overly concerning, and after any period of growth it is to be expected that the market will turn a corner."
Ms Porter said the report also showed that some locations in the Central West, however, had recorded positive growth, the most significant was in Canowindra which went up by 22.8 per cent.
The Blayney and Forbes housing markets grew by 11.4 per cent, Cowra and Lithgow by 10.9 per cent and Orange by 9.30 per cent.
Ms Porter said the report was produced annually to aid investors in avoiding negative growth traps.
Their analysis is based on CoreLogic data.