Melbourne’s housing values have now surpassed their 2017 peak, with property values increasing more than 10% during the past 12 months, according to Corelogic. Their February 2020 Home Value Index was released yesterday and confirms that our national property market has made a dramatic recovery during the past year, led by the double-digit results posted in Melbourne and Sydney.
Locally, Melbourne’s inner eastern suburbs are leading the charge, with dwelling values up more than 18% annually. The inner suburbs and inner south are also performing above average, with 13.7% and 12.9% annual growth respectively. These areas weathered some of the most significant drops across metro Melbourne during the recent downturns and are now recovering extremely fast.
The RBA decided to lower the cash rate by 25 basis points – from 0.75% to 0.5% – at its meeting today. This is a new record low for Australia, with the reduction partly prompted by economic uncertainty due to the global coronavirus outbreak.
Concerns about the impact of the coronavirus certainly didn’t impact the market’s performance over the weekend, with a clearance rate of 79% achieved and many houses selling for well above their reserve price. Despite more properties coming onto the market as vendor confidence strengthens, the clearance rate is holding strong, demonstrating there’s plenty of buyer demand.
This weekend will be a quieter one for auctions due to the Labour Day public holiday, however, we’ve got a busy schedule of open homes across our network. If you’re considering making a move, the long weekend is an excellent opportunity to get out into the market and see what’s on offer – and the prices these properties are set to achieve.
There was a slight lag in listings coming onto the market following the summer school holidays; more recently, we’re fielding lots of appraisal requests and potential vendors are being more decisive when it comes to putting their properties up for sale. With healthy levels of buyer activity and consistently high clearance rates, most are deciding it’s a good time to sell.
If it’s been a while since you’ve had your property valued, now’s a good time to do it. Many people who are genuinely interested in getting an appraisal put it off because they feel their property needs to be “sale ready” before they invite an agent in. This is absolutely not the case – your home doesn’t need to be spick and span for us to assess its potential market value in the current market.
Get in touch with your local Greg Hocking office for expert insight into what the market is doing in your area, or to request an appraisal.