This month’s Market Update comes at time where we can provide some clarity on some mixed messages floating around in the media coverage of the Victorian property market.
If you’ve been keeping an eye on the news lately, some analysts are talking about consistent slow growth in property values, while others are more inclined to talk about stability rather than price rises.
It depends on whose numbers you rely on, but it is important to keep in mind that these figures are based on tracking median or average sale prices from one month to the next. They don’t track movements in individual properties, and more importantly they are impacted by increases and decreases in specific price brackets. For example, if there is an increase in activity in the lower end of the market, the median price will move down even though the value of individual properties does not.
That’s why I found the latest ‘Pain and Gain Report’ from Corelogic quite interesting, as this compares each property sale during a quarter with the price that vendor originally purchased the property for. After comparing around 90,000 sales, this report found that around 94 percent of sellers around the country sold for a price above what they bought the property for. In fact, the average gain by property sellers was around $310,000. That’s certainly positive news for anyone considering selling in 2024.
From a first-hand perspective, we are definitely seeing a fragmented market where both the volume and quality of available property for sale are proving to be the key drivers of price movements. For the majority of Metro Melbourne, an ongoing shortage of new listings that we have been reporting since last year is still evident. This situation is likely to continue for the foreseeable future as we head into the cooler part of the year.
In other parts of the state, results have been more inconsistent with a high volume of ex-rental stock and holiday homes for sale on the peninsulas and in lifestyle locations putting downward pressure on prices in these areas. Overall, we are finding that most vendors are still achieving pleasing results within a reasonable timeframe, especially when you take into consideration the huge price growth that a lot of these properties had in recent years.
As we mentioned in last month’s Update, those agents who overprice listings in order to win the business are struggling to gain any traction at all, as homebuyers are overlooking most homes that don’t represent value. In this situation, it’s difficult to overestimate the benefit of experienced advice and a clear plan when hitting the market.
All in all, the current climate is one where there are definitely opportunities to buy, sell or both, where the right advice and direction can make a significant difference to your result. So, if you’d like to discuss your property plans with one of our team at Ian Reid Buyer and Vendor Advocates, give us a call on 9430 0000.
Cheers,
Ben Reid
08/29/2024 
