With Australia Day and the new school year upon us, the real estate market is starting to ramp up for 2019. 2018 was a subdued year for Melbourne property following a couple of years of phenomenal growth; while it’s too early to know what 2019 will bring, most property experts seem to think that prices will level out and perhaps even rebound as the year progresses.
Domain’s Property Price Forecast report, released in late November, predicts the most likely scenario for capital city property prices over the next two years. It forecasts that falling prices across Australia will stabilise in 2019 before moving into a moderate growth phase, supported by ongoing low interest rates, strong population growth and low unemployment.
Their prediction for the Melbourne market is that house values should only decline another 1% following a fall of around 9% during 2018, before bouncing back in 2020 with approximately 4% growth. If accurate, these estimates will see our median house price level out at around $800k in mid-2019, a similar price point to late 2016.
So what does this mean for today’s market? Through the latter part of last year, we saw a gradual change in vendor expectations. Sellers realised that there were fewer buyers on the market, and those who were actively looking were both less willing to pay ‘top dollar’ for a property and prepared to wait until a value opportunity presented itself.
Auctions in particular were challenging, with buyers less likely to bid in the hopes that they could negotiate a better result in post-auction negotiations. (I’ve covered my thoughts on this strategy in many previous blogs – allowing a property to be passed in on a vendor bid is a risky strategy as a lot can happen quickly if this occurs. If you’re genuinely interested in the property for sale, ensuring it’s passed in to you gives you an opportunity to negotiate directly – and exclusively – with the vendor, with no obligation to buy.)
In a less than stellar market, the importance of presenting your property to maximise its appeal can’t be underestimated. Choosing the right agent and agency to market your home is also crucial.
At Greg Hocking, our agents are local market experts who can work with you to ensure that your home makes a great first impression with potential purchasers. We know the buyers who are looking in your area and can help you to highlight the features we know they’ll fall in love with. We aim to create an emotional connection which has them thinking about your property long after they’ve left the inspection.
We’re proud of our reputation for service excellence. Our experienced sales consultants respond to market conditions – but we also get to know what makes you tick. We take the time to understand your motivations, goals and concerns, and ensure that your sales campaign addresses these aspects. We’re outstanding at follow-up and committed to achieving a standout result for you.