Buyers spent August bidding for keys to homes they were unable to set foot in, highlighting just how hot Melbourne’s property market remains.
The value of overall dwellings grew by another 1.2 per cent over the month to a median price of $954,496 for houses and almost $616,000 for units.
This brings the total growth in value for 2021 so far to 13.1 per cent in Victoria, a figure CoreLogic reports is far above the historical average.
Economists are tipping more growth to come. The latest Finder RBA Cash Rate Survey predicts Melbourne house values to rise $64,014 by July next year.
Property prices across Australia jumped 18.4 per cent in the year to August, marking the highest rate of annual growth since 1989.
Homes are also getting snapped up quicker than ever across the country, taking an average of 31 days to sell last month compared to 47 days in the same period of 2020.
Noel Jones achieved great results with 55 properties sold across Melbourne’s eastern suburbs throughout August.
Some highlights include the sale of a three-bedroom unit in Box Hill South for $1.07 million, defying the suburb’s median price for three-bedroom units by almost $200,000.
We also sold a three-bedroom two-bathroom house in Chirnside Park for $800,000, which is $70,000 above the suburb’s median for similar houses.
Another three-bedroom home in Lilydale also exceeded the area’s median, selling for $740,000 on 5 August.
Noel Jones has also seen strong rental market demand in Melbourne’s east, leasing 238 properties across the month.
CoreLogic reports the average house rental price in our city has increased by 3.5 per cent since August last year, to a median cost of $430 per week.
REIV reported an average weekly clearance rate of 94 per cent for August, with auction results strengthening towards the end of the month. Figures from Domain show Melbourne’s inner and outer east reported higher clearance rates than most regions.
Advertised stock levels remain low compared to a few years ago, however an average of 1765 properties were listed a week in Melbourne during August, which beat out listing figures for every week of 2020.
The enduring combination of low interest rates and less advertised properties is expected to continue driving Melbourne’s robust housing market into spring and beyond.
AMP Capital is predicting a surge in listings if restrictions ease in September, echoing the uptake in activity in regional Victoria once they exited lockdown.
Noel Jones will monitor the housing market closely for the remainder of 2021 to ensure we can keep delivering the best and safest real estate experience possible.
Contact us for expert advice on your property journey.