There’s been a lot of talk recently about Victorian property prices. Unfortunately, some of that talk has not only been uninformed, but also quoting figures that have no basis in reality.
To be clear, as we mentioned in our April Market Update, the market has experienced a slight flattening as we move towards a more balanced market. What we need to keep in mind is that whilst the REIV has reported a drop of just 0.3 per cent in Melbourne’s median house price during the March quarter, the first three months of the calendar year is the time that we normally see a seasonal drop in market activity anyway, so the latest figures were not surprising.
More importantly, if you look at the annual figures, (which are far more reliable as they show longer term trends rather than short-term blips), Melbourne’s median house price actually rose by 18.0 per cent in twelve months to the end of March 2022, whilst unit prices rose by 6.2 per cent.
So any flattening of the recent growth in property prices is on the back of a period of strong growth overall, and certainly not a cause for panic in any way.
They key thing to remember is, as we pointed out in the recent Market Update, is that properties that are well-presented and with price quotes that meet the expectations of the buying public are still achieving very pleasing results. In some cases, some results are still achieving close to those prices that everyone was talking about in the peak of the market last year.
As we’ve said in the past, it is important to remember that statistics like these provide some interesting insights into the overall market, but they don’t provide specific information on how much more your own individual property could be worth in the current market.
That’s why an experienced Advocate can be so valuable when you sell, particularly when it won’t cost you one cent extra! If you are thinking of selling and would like some objective guidance and assistance, you can give us a call on 9430 0000.
You’ll also find lots of helpful tips on selling your property in our free booklet, “Fatal Real Estate Traps Exposed”, so feel free to download a copy while you’re here.