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Property prices continue to surprise

Whilst we’re all looking forward to the day when we can wake to the news that there are no new Covid-19 cases at all, the fact that the numbers have been trending downward in recent weeks has certainly given plenty of residents of the City of Casey reason for optimism.

However, the daily pandemic numbers are not the only reason for local homeowners to be looking ahead a little more positively than we were a few months ago,

Another set of numbers that should be good news for anyone considering making a move before the end of the year is the latest property price data published by Corelogic. Their latest monthly price data provided further evidence of the resilience of the Melbourne market, particularly when you consider some of the ‘doom and gloom’ forecasts we were getting from a few market commentators after the pandemic began to impact on overall consumer confidence earlier this year.

As expected, the August Housing Price report from Corelogic indicated that house prices across Australia fell last month. This was no surprise given the current state of the national economy. However, the size of the fall in the national home value index during August was just 0.4%, whilst the drop in property values in the three months from June was just 1.7% , which is a much stronger result than many people would have expected.

Having been at the forefront of the impact of the virus, it was no surprise to see that the Melbourne property market experienced the strongest drop of all of the capital cities. Yet despite being impacted by the tighter restrictions of the Stage 4 lockdown, Corelogic reported that the total fall in the Melbourne market over the same quarter was just 3.5% after a drop of 1.2% in August.

Perhaps the most positive statistic of all is what we see when we take a longer-term look at property prices. After a year that has presented so many challenges, some of which we have never faced before as a community, Melbourne’s median property price is still 5.9% higher than it was at the same time last year. Yes, you read that correctly...higher!

Figures like these show just how strong the underlying foundations of the property market in our city are, which should provide anyone thinking of moving with a high degree of confidence. All we need now is for the State Government to allow buyers and tenants to undertake safe one-on-one inspections of properties, and we’ve got our fingers crossed that this decision won’t be too far away.

In the meantime, if you’d like a confidential discussion on how to get your property ‘market-ready’ for the launch of this year’s abbreviated Spring market, whenever that is, you can give the team at Barry Plant Cranbourne a call at any time on 5990 9400.

Best wishes,

Barry Plant Real Estate

Cranbourne & Frankston