This time last year the major topic of conversation among many so-called ‘real estate experts’ was how far property prices around Australia were going to fall, and how long it would be before we saw them bottom out!
As we all know, after a nervous start the Melbourne property market actually saw its median values increase in 2019, with auction clearance rates consistently tracking above 70% throughout the second half of the year.
The lesson we need to learn is that, whilst market movements from one month to the next may make a popular ‘water cooler conversation topic’, we really need to take a longer-term look to fully understand why property is such a valued investment…both in our own residence and as a growth asset.
For example, with the new decade about to arrive, we came across some interesting figures from the start of the decade that make interesting reading. Back then, the median house price in Melbourne was around $550,000…less than Canberra or Darwin and around the same as Perth!
Nowadays, of course, the Melbourne median has grown to around $850,000, an increase of more than 50%. Over the same period, both Perth and Darwin have decreased by a small margin, whilst Canberra has grown, but by a smaller margin.
Why the disparity with markets in the north and west? One of the simplest explanations comes down to our market being driven by the strongest population growth in the country, whilst Perth and Darwin are subject to the changing fortunes of specific industries like mining.
With our current record low interest rates expected to at least continue in 2020, and perhaps even drop lower, the outlook for the Melbourne market looks very positive indeed.
Therefore, if you are considering making your next move in a property market that continues to outperform so many others, don’t hesitate to give the team at Barry Plant Moonee Valley a call. Our offices will reopen on Monday January 6th, but you will be able to reach many of our team on their mobile numbers if you have any questions before that date.
Director – Barry Plant Real Estate
Keilor East & Essendon