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More good news on house prices

If you’re one of those local homeowners who took a deep breath earlier this year when you saw the predictions of ‘doom and gloom’ on house prices from several media commentators, this week’s release of the latest Domain House Price Report would have been good news indeed.

In fact, there are now a growing number of property market analysts who are adding to the forecast that the next move in Melbourne’s house prices could be upward, which is quite a contrast with what we were hearing when the pandemic first began to impact the market.

Domain’s property price figures for the September quarter, (which was right in the midst of the toughest part of the market lockdown), show a levelling of house prices rather than a decline. What’s more, the report confirms that Melbourne’s median house price is still 1.6% higher than the same time last year, despite the impact of the coronavirus throughout the majority of 2020.

It’s not just Domain saying this either, as these figures are similar to the trends reported by several other industry analysts, as we reported earlier this month.

There was further good news for Melbourne property owners. The quarterly data indicates that property prices rose during the three months to the end of September in every other capital city property market, (where the lockdown measures were eased earlier in the year). The quarter-on-quarter figures showed increases in prices that ranged from 0.4% in Brisbane to more than 6% in Hobart and Darwin. Our nation’s largest market, Sydney, recorded a rise of 1.2%.

With restrictions now being eased slowly but steadily across Melbourne, many observers are predicting that we will see rises here over the coming months as well. Dr Nicola Powell, a senior research analyst at Domain, was quoted this week saying, “I do think pent-up demand and supply will see a flurry of activity and that this will support prices. It’s something we’ve seen in other countries that have come out of a strict lockdown.”

The important thing to remember is that figures like these reflect overall trends in the market, rather than increases or decreases in the value of individual properties. What really matters if you are planning on selling this Spring is how much more you can achieve for your property with the right advice and the right strategy in place. So, if you’d like to discuss your options, you can give us a call at Barry Plant Thomastown on 9466 3233 to discuss your options or give me a buzz on 0418 331 741.

Cheers,

Con Constantinou

Barry Plant Thomastown