Melbourne’s real estate market has started 2022 on a high, with our median house value reaching a million dollars for the first time ever.
The latest CoreLogic data shows that the price of homes in our city rose by half a percent in January, to a median of $1,002,464.
The value of dwellings overall grew by 0.2 per cent to $798,881. Although this growth is mild, it marks an improvement after a slight drop in value in December 2021.
In the three months to January, property prices in Melbourne rose almost one per cent.
This is a less dramatic rise than this time last year, however the gradual return of offshore buyers is starting to generate activity across our city.
Noel Jones anticipates this will also be the case for the unit property market, which should bounce back as Australia’s borders remain open and we welcome back international students.
While January is traditionally a quiet month for home sales, pent-up demand continues to fuel plenty of market activity across the country.
There was 15.1 per cent more buyer activity than in January last year, smashing the previous five-year average.
Buyers in Melbourne had plenty of stock to choose from in January, with the number of advertised properties also above average for this time of year.
The cost of renting a house in our city rose by five per cent in the year to January 2022, which has resulted in stronger demand for unit rentals.
The unit rental market is improving, with rent up by 4.4 per cent in the 12 months to January.
Realestate.com.au forecasts growing demand for inner-city apartments and a boost in investor interest as foreign students and travellers return.
Despite the Reserve Bank maintaining our record low interest rates at their first meeting for 2022, speculation continues about a potential rate rise.
The RBA has declared that the economy is exceeding expectations, but will wait to ensure inflation and wage growth stabilise before any increases.
An interest rate rise could cool the growth of property values, particularly when combined with new lending restrictions for borrowers.
Banks were required to toughen their mortgage serviceability tests late last year.
Noel Jones expects to see the impact of these new rules this year, and as always will closely monitor the market for any changes.
For the latest property market updates, head to noeljones.com.au.