Quarterly Market Wrap

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.

Share:

More Posts

Settling on a strategy for property investment success

Global markets have been thrown into disarray by the coronavirus pandemic, as investors’ thoughts turned from prosperity to survival. While Australia’s share market remains turbulent, the property market has defied 2020’s dire predictions and is thriving. The value of dwellings has swelled 13.5 per cent over the past year according to the latest CoreLogic Home Value Index figures. The growth

June Quarter Market Update

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

Sound strategies for winning an auction

You could call watching an auction in Melbourne a much-loved sport. As the preferred selling method, there are a few factors to consider before you let your heart take over and bid above your budget. Unfortunately, bidding at auction isn’t an exact science; there are many methods, and every auction is different. If you are planning on bidding, you’ll stand

Why landlord insurance is a sure-fire win

Taking out insurance is a lot like buying a lottery ticket, with both decisions steeped in possibilities and ‘what-ifs’. However, when it comes to investment properties, landlord insurance is a wise gamble. Landlord insurance is designed to cover the cost of replacement or repair if your residential rental property is damaged as a result of certain events. This type of

Send Us A Message