December market update

Vendors made up for lost time as we closed in on 2022, bouncing back strongly after months of uncertainty due to lockdowns and limits.

Sellers listed in record numbers in the final months of 2021. Figures from Domain show newly advertised properties in Melbourne’s inner and outer eastern suburbs jumped by 54 and 50 per cent respectively in the year’s final quarter.

This resulted in very high auction volumes, with a record 6391 auctions held across December in Victoria.

Despite the recent surge of COVID cases, we expect vendor confidence to stay high in 2022 as we navigate the pandemic with a highly vaccinated population.

The real estate market has not only weathered COVID-19 – it has thrived. Melbourne’s eastern suburbs are proving more desirable than ever as we head into 2022.

CoreLogic’s Best of the Best report reveals Canterbury and Hawthorn have some of the highest median house prices in our city, placing them both in the top 10.

Canterbury was ranked fifth, with more than 100 houses selling across 2021 to achieve a median value of $4.26 million. Close to 200 homes sold in Hawthorn, reaching a median of $2.9 million.

Ashburton had the highest median value on the unit market, hitting $1.32 million. Balwyn North was sixth, achieving a median unit value of $1.13 million.

Noel Jones closed out 2021 with a string of successful sales. We sold a three-bedroom Blackburn unit for $1.03 million, beating the suburb’s median of $986,000.

A four-bedder in Mitcham changed hands for $1.33 million – more than $100,000 above the area’s median.

Property prices across Melbourne rose an outstanding 15.1 per cent over the last 12 months to $795,108.

While prices grew by 1.5% in the final quarter of the year, they dipped by 0.1% in December. This marks their first fall in 14 months.

Houses ended 2021 with a median value of $997,928, while units reached $627,047.

This year’s growth has been fuelled by several factors, including high demand, low interest rates and increased household savings. The federal and state government also dialled up funding assistance programs for aspiring homeowners.

We expect to see the market slow slightly heading into 2022. Buyers still outweigh sellers in the current market, but the gap is narrowing as we experience an influx of listings. This should generate more balanced conditions for supply and demand.

The Reserve Bank opted to keep its record low interest rate in place at its December meeting, however economists continue to speculate about a potential rate rise in 2022.

Noel Jones will continue to monitor for any changes to the interest rate as well as the impact of new lending restrictions introduced by banks.

Melbourne’s rental market is likely to get even more competitive with the return of international students and migrants in 2022.

Domain’s latest vacancy report shows the number of properties available to rent in Melbourne is at its lowest level since mid-2020.

For expert guidance and advice on your property journey, speak to Noel Jones.

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