If you’ve been watching the recent coverage of the increases in median property prices as the market bounces back from the impact of the lockdowns, you’ve probably been surprised by how quickly these price movements have impacted the Victorian property market.
But did you know that one of the key factors in determining the size of price movements in the market is not simply the area you live in, but the price bracket that your property falls into?
For example, if you were to take a look at the latest home value index from Corelogic, the overall national trend shows that in February we recorded the strongest monthly rate of growth in residential property prices since the middle of 2003. However, if you look beyond the headline rate, you’ll find that properties in the top 25% of overall values rose by 2.7% in February. This compares with properties in the middle tiers which rose by 1.5% over the same period, whilst properties at the more affordable end of the market increased by 1.2%.
These figures confirm what many of the more observant market analysts have been saying for several years; that the property markets in Melbourne and Sydney tend to be fairly cyclical over the longer term, with the more expensive segments of the housing market experiencing deeper declines during a downswing period, and more rapid upswings when the market is climbing.
Trends like these are important to keep in mind, particularly if you are planning on making a move in 2021, or perhaps purchasing an investment property as a means of securing your long-term financial future.
In either case, the team at Ian Reid Buyer and Vendor Advocates are ready and able to assist you in achieving your property goals, particularly when you need experienced and objective advice in an ever-changing market. Peace of mind is just a phone call away, so why not give us a call on 9430 0000 today to discuss your options?
You’ll also find plenty of helpful suggestions for property sellers in our free booklet, “Fatal Real Estate Traps Exposed”