Quarterly Market Wrap – September 2017

aerial shot

As the days get longer and higher temperatures begin to coax us outdoors, the real estate industry gears up for another ‘spring selling season’ following what has been a significant growth quarter for Melbourne, the world’s most liveable city.

Receiving a perfect score for healthcare, education and infrastructure by the Economist Intelligence Unit for the seventh year in a row, Melbourne came out on top in terms home value growth last quarter, outperforming the nations other capital cities.

During the winter period, dwelling values in the city jumped 1.9 per cent, with some of the outer suburbs experiencing a staggering 10 to 20 per cent price growth.

Experts say Melbourne’s low levels of available housing stock and relative affordability compared to Sydney, are keeping the market afloat. However, price growth is tipped to moderate by the end of the year, with more homes likely to hit the market now that spring has arrived.

Melbourne home values—which take into account both houses and units—are 12.7 per cent higher than they were a year ago.

Australia’s most expensive property market, Sydney, has enjoyed 13 per cent annual price growth to a $909,914 median, but experienced just 0.3 per cent quarterly gains and no change in August.

Value growth was also soft across the combined capitals, up just 0.6 per cent in the quarter—the lowest rolling quarterly gain since June last year—and 0.1 per cent last month.

CoreLogic head of research Tim Lawless said the nation’s property market slowdown was “most visible” in Sydney, while Melbourne had been “more resilient”.

This resilience was reflected in auction clearance rates in Melbourne, which has consistently remained above 70 per cent.

Melbourne’s median house price is now $822,000, with an average of 29 days on market.

Spotlight On Our Backyard

A quick look at local stats revealed some surprising results this quarter, with some of the higher priced pockets slightly decreasing in value, as the outer eastern suburbs soared. Croydon recorded Melbourne’s highest median price growth for the quarter at a staggering 20%.

July – August 2017 Snapshot

Suburb Median Days on Market Quarterly Growth
Camberwell $2.11 Mil 33 8.1% decrease
Balwyn $2.26 Mil 32 4.6% increase
Box Hill $1.79 Mil 33 4.4% increase
Mont Albert $1.86 Mil 32 12.4% decrease
Blackburn $1.43 Mil 29 4.6% increase
Mitcham $1.04 Mil 29 4.2% decrease
Doncaster $1.5 Mil 36 11.4% increase
Wantirna $957,000 26 5.1% increase
Ringwood $948,000 26 11.9% increase
Croydon $810,000 24 20.4% increase

Data Source: reiv.com.au

First Homebuyers Turn To Mum and Dad

With some of Melbourne’s ‘more affordable’ pockets going up by as much as $150,000 in three months, first home buyers are relying more and more on their parents to get a foot in the property door.

According to new research, the ‘Bank of Mum and Dad’ is now the nation’s fifth largest mortgage lender after the big four banks.

The data from financial comparison website mozo.com.au reveals 29 per cent of Australian families offer financial help to their kids, lending an average amount of $64,206.

Mozo director Kirsty Lamont said the popularity of the ‘Bank of Mum and Dad’ showed Australia’s property market was not readily accessible to younger generations.

“With Australian property prices rising by 618 per cent over the past 30 years and national incomes failing to keep up, the ‘Bank of Mum and Dad’ is proof of family generosity, but also points to a broken property market for younger generations,” she said.

Finance

There are mixed predictions from economists as to whether we are likely to see an interest rate rise or several concurrent rises in the near future. The Reserve Bank of Australia’s next meeting to decide on the official cash rate target will be held on the 3rd of October. The current cash rate is at a historical low of 1.5 per cent with the average variable loan around 4.99 per cent.

Source: heraldsun.com.au, news.com.au, realestate.com.au, reiv.com.au.

Share:

More Posts

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

Grandmillenial Style – why it’s a trend you need to jump on

A new trend in home decorating has emerged and is quickly gaining momentum. It is called “Grandmillenial” style or “Granny Chic”. This style is full of nostalgia for anything old fashioned or traditional, like something you’d see in your granny’s home, throw in some contemporary artwork or sleek modern furniture and there you have the style in a nutshell. While

Send Us A Message