The Melbourne property market outperformed all expectations last year, and the final quarter of 2016 was no exception. The year wrapped up with a record-breaking number of auctions, further price growth and a genuine sense of excitement about what’s in store for the market in 2017.
Christmas Auction Bonanza
The Melbourne property market closed out the year on a real high note, with almost 4,000 properties going under the hammer during the month of December. That’s the most properties ever auctioned in Melbourne in a single month. To provide some comparison, 3,804 homes went to auction in Melbourne during December 2015.
The final auction weekend of the year (on December 17 and 18) saw an incredible 1,200 properties go to auction, over 1,000 on the Saturday alone. There were even a handful of auctions carried out on Christmas Eve. Those unprecedented levels of auction activity late in the year generated sky-high clearance rates and genuine excitement among buyers. Those who missed out on purchasing property in December are heading into 2017 more determined than ever to secure the right property for themselves and their family.
Continued Market Strength
The market performed well in the final quarter of 2016, as it had throughout the year. Victoria defied national trends, with clearance rates at their highest levels since 2009 and steady median price growth. While there were fewer homes on the market overall throughout 2016, sustained demand from buyers kept pushing median prices higher in many areas.
While the final median price figures for the December 2016 quarter are yet to be released by the Real Estate Institute of Victoria, early indicators suggest there will be another increase in the Melbourne median price. Throughout the year, growth was strong across all regions, (inner, middle and outer suburbs), with the citywide median reaching $740,000 for the first time ever in the September quarter.
Looking Ahead to 2017
Victoria remains the fastest growing state in the country. Our thriving economy, combined with low interest rates, mean that we’re expecting buyer demand to remain strong in the New Year. The market typically slows in January before picking up again around March – however, several Noel Jones offices were already planning February listings at the end of 2016, which is a positive sign for the month ahead.
Other trends to keep an eye on this year include rising interest rates, an increased focus on housing affordability, and the potential of new regulations to be introduced for property investors.
As always, if you have any questions about buying, selling, investing or, renting, give us a call today. The team at Noel Jones is always happy to assist with all your real estate needs.
