Changes in outlook

What a difference a year makes

Can you remember what you were doing one year ago? Most of us in Victoria were anxiously scanning the news each day to see how many new cases of Coronavirus we had, and wondering what the next set of lockdown restrictions might entail.

Of course, from a property perspective, we were all reading the latest forecasts from a variety of economic sources telling us that real estate values were about to head south, with the only disagreement being how far south they would go, and how many years it would take for the market to recover.

So it was interesting to read the latest quarterly market data from the REIV which hit our screens this week …numbers which confirmed just how badly the economics experts read the market last year, and how resilient the Victorian property market really is.

In case you missed the news, the REIV has reported that Melbourne’s median house sale price has flown past $1million for the first time, with the typical house in our city selling for $1,004,500 during the first three months of 2021! Not only does record-breaking number reflect an 8.8 per cent increase on the previous quarter, but this rise is the largest quarterly increase for houses in metropolitan Melbourne since the December quarter of 2009.

For all of our readers in regional Victoria, the median Victorian house price outside the metropolitan area broke through the half million-dollar barrier during the same quarter, reaching $510,500.

It is important to keep in mind that these figures relate specifically to houses, rather than the lower maintenance end of the market. However, unit owners will be pleased to know that the median unit sale price in Melbourne also increased in the March quarter, although by the smaller margin of 4.8 per cent.

Figures like these will give many Victorian property owners good reason to look closely at their property plans for the years ahead, and to reconsider whether they might bring some elements of those plans forward. With this in mind, now could be an ideal time to discuss your plans with an independent and objective Advocate from Ian Reid.

Feel free to give the team a call this week on 9430 0000 to talk about your options. You’ll also find lots of helpful suggestions for property sellers in our free booklet, “Fatal Real Estate Traps Exposed”