Happy New Year! I am looking forward to a more positive year with hopefully less challenges than what 2020 brought us.
The Victorian property market has swung back into action and signs are indicating that we are going to be in for a very active year. With record low interest rates, stamp duty concessions available to all purchases up to $1,000,000, record levels of savings which means some buyers have larger deposits (which means higher budgets), COVID-19 under control at the present time (in Australia) and with many people’s just wanted to get on with things now has created a spike in buyer demand.
There were 202 auctions reported over the weekend with a clearance rate of 82% in comparison to 203 auctions reported the same time last year with a clearance rate of 69% In addition there were another 153 private sales.
At the end of December 2020 quarter, Melbourne’s median house price reached a record $936,000 (an increase of 5.3% over the quarter). Units prices also reached a record high of $570,000 but the gap between houses and units prices seems to be widely with lock down changing the wants and needs of some property buyers to want more space. This has also put pressure on property prices in Regional Victoria with a shift in some people wanting the quieter lifestyle opting for a treechange or seachange. The Greater Geelong median house price is currently at $606,000 and achieved a growth rate of 4.1% over the past twelve months. We are predicting the growth rate in Geelong to be strong over the next six to twelve months as investors come back into the market and some families making the move from capital cities (including Melbourne and Sydney) to the area.
At Elite, we are seeing a range of new buyers coming into the market from first home buyers, upsizers, downsizers, local investors, interstate investors, expats purchasing homes with the view of returning to Melbourne, an increase in Sydneysiders moving to Melbourne and Geelong as properties are too expensive for some in Sydney. It appears that all segments of the market are active and will likely be so for this year.
The levels of stock on the market have been low which is a natural occurrence for the holiday period (December and January). Now that Australia Day has passed, stock levels will rise over the next few months starting this week and should continue until the end of May.
Have a great week.