Melbourne property price increases highlight investment opportunities
Whether you're selling an investment property or a family home, it's important to keep an eye on the market to see how they're faring. This will help you to gain the best return for your home.
The latest release from the Real Estate Institute of Victoria (REIV) has highlighted the growth Melbourne experienced during the September quarter, which could be exciting news for anyone considering selling their property in the area.
Median house prices in Melbourne have increased nearly 9 per cent during the September quarter, with REIV Chief Executive Officer Enzo Raimondo stating that buyer confidence coupled with the historically low cash rate have helped to stimulate the market.
Houses in Melbourne now have a seasonally adjusted median price of $595,500, which is up from the $547,500 recorded in the June quarter. Furthermore, this amount dictates a brand-new high for the city, surpassing the previous peak of $559,000 back in the December quarter of 2010.
Mr Raimondo said that there was a "very strong increase in demand" for properties, especially across August and September. The fact that increases were sustained from the previous quarters was also a safe indication of an increasingly strong Melbourne real estate market.
"The increased demand is supported by a number of positive indicators in the state including population growth, consumer sentiment, clearance rates, and the number of sales," said Mr Raimondo in an October 19 statement.
This is reflected in the statistics, which highlight an 11.4 per cent increase in Victorian consumer confidence levels during the September quarter - the highest of any state across the nation.
Furthermore, there has been a 14 per cent growth in the average auction clearance rate over the last quarter, along with a 10 per cent increase to the number of sales in the quarter compared to 12 months prior.
The number of premium sales across the city was highlighted over the quarter, as suburbs with the strongest growth like Balwyn, Ascot Vale, Brighton East and Footscray tending to be in the inner and middle suburbs of Melbourne.
"The median house price in regional Victoria was more stable with a 0.8 per cent increase in seasonally adjusted terms to $308,000. However, the key regional centres of Geelong, Ballarat, and Bendigo continue to outperform the broader regional market," said Mr Raimondo.