The latest property price data from Domain has confirmed that the rebound in the property market last year was so strong that Melbourne’s median house price has reached almost exactly the same heights that we saw at the peak of the market at the end of 2017.
The Domain House Price Report for the December quarter of 2019 showed that the median house price in Melbourne rose by 5% during the last quarter of the year, reaching just under $902,000. This capped off a year where prices rose by 8.7% from the end of 2018, and fell just short of the all time Melbourne record of $908,734 which was set in the December quarter of 2017.
It is fair to say that the strength of the rebound has caught most market observers by surprise, particularly given that the bottom of the recent correction occurred in the March quarter of 2018, when our median house price was below $810,000.
What is important to remember is that whilst this data shows what has been happening in the overall Melbourne market, the price movements have varied quite substantially between different areas of Melbourne. For example, the Domain report suggests that prices in Melbourne’s inner region, which covers an area from Elwood to Coburg, are now more than 19% higher than they were a year ago.
Whilst other areas of Melbourne recorded much lower year-on-year growth rates, it was interesting to see that the highest quarterly rise occurred in the Outer East, followed by the North East and the North West.
These regional variations are another reminder of the importance of getting experienced, objective advice before you make any final decisions on if, and when, to buy or sell property in Victoria.
If you would like some up-to-date information on what’s happening in the current property market, you can give one of the team at Ian Reid Vendor Advocates a call on 1300 400 400 for expert guidance.
You’ll also find lots of helpful tips in our free booklet, “Fatal Real Estate Traps Exposed”.