Indeed, based on what we’ve all been reading in the media over the past few months, you might well think that there are two markets which seem to have performed in completely different ways over the past year or so. So, what is the average home owner in the City of Hume supposed to make of these contrasting market statistics?

On one hand, there’s been the usual ‘doom and gloom’ reports from the usual suspects telling us that not only did Melbourne’s median property price fall last year, but that they expect it to fall further in 2019. Contrary to that, we have other analysts saying that SOME prices have fallen, but it all depends on what type of property you have, which suburb it is in, and what price bracket it falls into. Now, just to cloud the picture a little further, we have the market statistics from the REIV which were released this week and featured in the Herald-Sun this weekend, stating that Melbourne’s median house price actually increased by 1.4 per cent during the 2018 calendar year, whilst the median unit price increased by 1.8 per cent over the same period!

There are clearly some mixed messages here, but as the article by Samantha Landy points out, part of the confusion comes from the fact that different analysts use different sources of information. For example, the article mentions that Corelogic, which claimed a fall of around 9% in house prices last year, uses a method that calculates the estimated value of all residences in greater Melbourne. In contrast, “the REIV figures only take into account homes that sold”.

No matter which source of market statistics you choose to rely on, (if you choose to rely on any at all), it seems that there is one clear message worth taking on board. As is often the case, the market right now is nowhere near as gloomy as the media would have us believe, nor is it as unashamedly bright as some spruikers with vested interests would have us believe.

The key thing to keep in mind, as I’ve mentioned in previous posts, is that if you are buying and selling at the same time in the same market, any movements in median prices are almost irrelevant anyway. If the home you’re selling goes up or down by 5%, and the property you’re buying changes by the same percentage at the same time, then your overall financial position will be almost exactly the same. It’s another case of swings and roundabouts.

Just keep in mind that if you are making plans for the coming year, and you’re keen to make those plans based on accurate information, you can always get an update on what your property could achieve in the current market by calling our team at Barry Plant Gladstone Park on 03 9330 1088.