The release of the latest Domain House Price Report this week has added to expectations that the next move in Melbourne’s property prices could be upward, contrasting sharply with many of the forecasts that economists were providing in the first half of this year.
Not only did Domain’s quarterly price data for September, (during the toughest part of the market lockdown), reflect a levelling of house prices rather than a decline, but the figures show that Melbourne’s median house price is still 1.6% higher than the same time last year, despite the impact of the coronavirus throughout the majority of 2020.
These figures are similar to the trends indicated in the REIV’s quarterly price data that we reported earlier this month.
The good news for Melbourne property owners is that in every other capital city property market around Australia, where lockdown measures were eased earlier in the year, the latest quarterly data indicated that property prices rose during the three months to the end of September. The quarter-on-quarter figures showed increases in prices that ranged from 0.4% in Brisbane to more than 6% in Hobart and Darwin. Our nation’s largest market, Sydney, recorded a rise of 1.2%.
With restrictions now being slowly eased in Melbourne, many observers are predicting that we will see rises here over the coming months as well. In fact, Dr Nicola Powell, a senior research analyst at Domain, has been quoted as saying, “I do think pent-up demand and supply will see a flurry of activity and that this will support prices. It’s something we’ve seen in other countries that have come out of a strict lockdown.”
Keep in mind that figures like these reflect overall trends in the market, rather than increases or decreases in the value of individual properties. The statistic that really matters if you are planning on selling this Spring is how much more you can achieve for your property with the right advice and the right strategy in place. So, if you’d like to discuss your options, you can give us a call at Ian Reid Vendor Advocates today on 9430 0000.
You’ll also find lots of helpful tips for property sellers in our free booklet, “Fatal Real Estate Traps Exposed”