In January, Melbourne’s median house price hit an all-time high of $1,002,464, with experts continuing to speculate whether February would see a further push upwards, and yet another record broken. Well, the answer to that question is now known. Although the market remained incredibly buoyant, the median house price in our state’s capital declined marginally for February, settling at $998,356 according to figures provided by CoreLogic. The city’s median unit value increased 0.1 per cent to $626,042, while the combined house and unit figure moved less than $1,000, ending summer at $799,756.
In what has been named Melbourne’s biggest summer in real estate history (Source: Nathan Mawby, article 27 Feb 2022), the industry saw more auctions called, and more sales made, than in any before. It also saw an unbelievable 81 real estate records broken. One of these records was proudly broken by Noel Jones’ own Paul Leydin, selling 58 Gardenia Street Blackburn for a whopping $3.16M which was a suburb record. The home in one of Blackburn’s most tightly held pockets offered 5 bedroom-5 bathrooms, and a seamless fusion of indoor-outdoor living highlighted by the family pool and a substantial allotment of 938m2 (approx.). The campaign created great interest from buyers and locals alike with 9,600 views of the property on realesate.com.au; the property also appeared in a staggering 94,800 searches on realestate.com.au. This culminated in a hotly contested auction with the final two bidders fighting it out once the property topped $3M.
The corridor that Noel Jones operates most predominantly in pleasingly delivered clearance rates above the Melbourne average of 69%, with the inner East clearing 72.8% of properties going under the hammer, and the outer East producing a result of 69.7%. Whilst these figures show a year-on-year decline, it is important to note that the Melbourne average of 75.3% recorded in February 2021 was at a time where stock levels were incredibly low – 5.5% less than they currently stand – and buyers were bidding on properties in a frenzy due to a constant fear of missing out. By comparison, the auction volumes this February were high in contrast to corresponding years; in fact, it was the highest number of February auctions listed since Domain started keeping records.
Listing levels are predicted to remain at record levels throughout autumn as well. Eliza Owen of CoreLogic has suggested 2022 should be a year of higher stock quantities which will afford buyers more time to make purchasing decisions; she suggested this may lead to lower prices as well. This sentiment was echoed by Cameron Kusher of the REA Group who has also predicted strong listing volumes, and a subsequent deceleration in price growth; this is prominently due to a decline in sales at the higher end, and a decrease in the number of first home buyers in the current landscape. With the highest gap we have ever seen between houses and unit prices, he predicts this may drive an increase in buyer demand for units based on affordability.
Other factors that may impact market performance throughout 2022 include international travellers who have recently been welcomed back to the state, and the ongoing speculation of interest rate rises. Whether these will have a dramatic effect is yet to be seen; however, those who follow the market will be watching keenly to determine their impact.
If you think autumn is the perfect season to make your next move, contact your local Noel Jones office; they’ll be more than happy to discuss your future plans.