There has been no hibernating for Melbourne’s housing market over the June quarter, with the median house sale price tipping over the million-dollar mark to $1.01 million.
While this only represents a 0.2 per cent increase in the last quarter according to recent Real Estate Institute of Victoria (REIV) figures, this follows a record 8.8 per cent growth in the first three months of 2021.
Much of this growth has been fuelled by strong buyer demand and ongoing low interest rates, which have remained at a historic low since November last year in a bid to support Australia’s economic recovery from the pandemic.
Hawthorn East saw the highest jump in median house price growth according to REIV, jumping 42.2 per cent this quarter to $2.91 million.
The corridor covered by Noel Jones performed exceptionally well, with the median price in Ringwood East up by 32.3 per cent to $1.2 million and Glen Iris up 18 per cent to $2.62 million.
Donvale’s growth was close behind at 17.1 per cent to $1.25 million, while Nunawading grew by 14.8 per cent to $1.32 million.
Melbourne’s overall unit prices over the last quarter were also up by 2.1 per cent, to a median price of $680,000.
Despite the uncertainty created by Victoria’s June lockdown, many buyers were still vying for new housekeys. Melbourne reached an average clearance rate of 85.2 per cent across the quarter, with June featuring two of the year’s busiest auction weeks.
Noel Jones achieved a clearance rate of 100% for six weeks during the quarter, and it is anticipated these strong results will continue this current quarter.
Buyers are snapping up homes faster than ever, with all properties in Melbourne on the market for an average of 34 days in the June quarter.
Meanwhile outer Melbourne and regional Victoria have recorded their shortest days on market in more than a decade, with regional suburbs spending a median of 35 days on the market in May and outer-metropolitan suburbs sold in an average of 22 days.
Victoria’s swift sales demonstrate the sense of buyer urgency in the market, which has been fuelled further by low stock levels.
National advertised stock levels in June 2021 were almost 25 per cent under the five-year average according to CoreLogic.
Looking ahead, we expect the market to hold strong, even as Victoria faces further lockdowns.
REIV estimates around 4500 auctions will be held in July and a similar number for August.
Speculation continues around when interest rates will rise, with the Reserve Bank signalling they may be lifted sooner than forecast due to Australia’s strong economic recovery.
We’ll monitor this closely and expect to see the market slow slightly if banks are forced to tighten mortgage lending standards.
Contact Noel Jones for expert guidance every step of the way on your property journey.