History provides a clear message

This is because it is virtually impossible to use long terms figures that don’t show consistent growth in property values. That’s why we are always advising clients that property is a long-term investment, not a “get rich quick” scheme.

So, in a climate where some media commentators seem so fixated on the changes from one month to the next, I thought it might be timely to look back at Melbourne’s median property values over the longer term to regain some sense of perspective.

I did a bit of research and found some interesting numbers from one of the larger national Valuation firms that gave us a snapshot of values going back to 1980.

The data shows that 46 years ago, the median house price here in Melbourne was $39,500. Yes, you read that correctly…under $40,000.

Move forward ten years to 1990, and the median house price had risen to $131,000. Another decade down the track, and that number had hit $191,000. The first decade of the new millennium saw even greater growth, as our median house prise rose to more than $490,000, while that number rose almost as quickly between 2010 and 2020 in reaching a bit over $733,000.

Of course, those with a good head for figures will know that Melbourne’s median house price is now well into the $900,000’s, despite a few slight corrections in recent months.

Why are these numbers important? Well, while some people are busy looking at the statistics showing a drop of a few percent in response to a tightening of monetary policy by the reserve bank, the smart property owners are sleeping peacefully knowing that they own an asset that has multiplied more that 20 times in value in less that 50 years.

It’s all about perspective, isn’t it.

So, if you are thinking about your own plans for the future and would like to chat to one of our local property market experts to gain the benefit of their perspective, you can give us a call this week at Barry Plant Thomastown on 9466 3233.

Cheers,

Con Constantinou

Barry Plant Thomastown