The release of the latest property price data from Corelogic this week has provided further confirmation of the underlying strength of the Victorian property market.
As we pointed out when Corelogic published their monthly report for June, the overall fall in property prices since Covid-19 began to impact has been remarkably minor. This trend continued in July, with Australian housing values falling by just 0.6%. Not surprisingly given the tighter restrictions in Victoria, our local market recorded a slightly higher drop on 1.2 percent.
Obviously, monthly figures can be a little misleading at times, so it’s worth noting that Corelogic’s figures for the past quarter indicate that Melbourne’s median property price dropped by 3.2 percent from May to July. However, to keep this number in perspective, our median price is still 8.7 percent higher than it was in July 2019, so we certainly haven’t seen the substantial price drop that some doomsayers were forecasting back when the pandemic first began to have an effect on overall consumer confidence.
A closer look at the latest data also reveals another interesting trend, with the upper quartile of the market showing a larger drop in values than the lower quartile.
Over the past four months, values at the top end of the Melbourne market appear to have dropped by 5.2 per cent. In contrast, properties at the more affordable end of the price spectrum have declined by a far more modest 1.2 per cent. This variation is not surprising when you consider that the Government has introduced incentives for first home buyers. It is also worth remembering that the top end of the market had enjoyed a significant rise in values during the second half of last year and into early 2020.
Perhaps the most important statistic of all if you are considering selling in 2020 is that no matter what the overall market trends may be doing, a strong individual result is always more likely when you have an experienced advisor by your side throughout the selling process. So why not give the team at Ian Reid a call to discuss your options on 9430 0000 today?
You’ll also find plenty of helpful suggestions for property sellers in our free booklet, “Fatal Real Estate Traps Exposed”.