LAST year, when Melbourne was in a lengthy COVID-19 lockdown, it might have been hard for some to imagine that the property market would bounce back so quickly, but that’s what has happened.
While there’s still more recovery to come, the post lockdown housing frenzy has resulted in the state recording the largest growth in its median price since 2000 to reach a record price in Melbourne, according to the latest Real Estate Institute of Victoria (REIV) data. Over the last three months of 2020 Melbourne’s median house price broke through the $900,000 barrier for the first time, growing by 9.5% to reach $941,000. Regional Victoria also hit its highest level since 2003, with the median house price growing by 9.2% and units rising by 3.5%.
Underpinning prices is a multitude of factors including confidence, buyer demand, low interest rates and government assistance and incentives, including stamp duty concessions and first home buyer grants. The REIV found there were 29,500 transactions over the December quarter – more than in the first quarter of 2020 – demonstrating the huge activity we’ve witnessed since the lockdown ended last year. CoreLogic data also found there was a 44% increase in auction volumes over the three months to December.
Melbourne home values are still 4.1% below their March 2020 peak, but price growth of 5% or upwards is now predicted for this year at least, with many predicting greater growth.
The big factors to watch out for this year include:
• The potential retreat of COVID;
• Unemployment numbers and GDP growth for the March quarter;
• Economic growth;
• A surge in supply early in 2021;
• Any other ‘black swan’ event that could arise, such as another COVID.
Assuming these and other factors are broadly positive, most cities will grow this year, but Melbourne and Sydney are likely to have the best growth over the next five years, due to a bigger population, broader economic base and being more likely to attract migrants and investors. As you can see from this chart below, Melbourne has had one of – if not the - best long term growth rates over the last 20 years.
If you need expert advice or help – whether you’re buying or selling - Property Mavens is here to guide you through the property market during the COVID-19 crisis and beyond. To talk to a qualified and highly regarded buyers’ agent or seller’s advocate during this challenging time, contact us today.
How are you positioned financially?
COVID-19 and associated lockdowns, restrictions and travel barriers may not have been ideal, but did provide an opportunity for many people to save discretionary income. Many have put those savings towards a first home or investment deposit. Others have also prioritised paying off debt, and continue to do so, with a recent survey from MyState Bank finding one in five respondents plan to pay their mortgage off faster now, while 17% are determined to reduce credit card and personal loans.
One of the great lessons that we can take from COVID-19 is that we must all pay more attention to our finances, and be more careful with our money, particularly to protect ourselves from the unexpected. Some people have cut back on spending and kept those discretionary funds simply as a cash savings buffer, which, in the light of COVID-19, where many people have lost their jobs, seems like a better idea than ever. Property investors, in any case, should always have a cash buffer to cover unexpected costs.
This is also a good time to again check your interest rate and ensure you have the best possible deal. Rates are still at historical lows, and some lenders are offering rates below 2%. Make sure you’re making the maximum savings.
An experienced and expert buyers’ agent such as Property Mavens can provide advice and help buyers and sellers to navigate any market and choose the right properties. If you are a buyer or seller that needs assistance, contact us today for an obligation-free discussion.
Why do you need a buyer's agent?
As a first home buyer, Kirsty has been searching and missing out on buying a property for 3 years.
Needing assistance to actually secure a property of her own, rather than continuing on the merry-go-round, she engaged Property Mavens services as a metrobuyers agentto assess and negotiate to buy her a first home.
We were proud to say we were able to assist her to purchase a property within just 4 weeks of Kirsty engaging our services! We successfully purchased this fantastic property, a 2-bedroom, 1-bathroom apartment in Malvern East on her behalf via a private sale.
We beat very tough competition in what was a fast-rising market due to COVID-19 to deliver on Kirsty’s brief of buying a low-maintenance first home that was also an A-grade investment property.
If you want help to identify an investment-grade property like this one, whether it’s a family home or an investment property, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
Why do you need a vendor's advocate ?
Clara and Jason wanted a stress free experience selling their home, a 4 bedroom, 2 bathroom house in Point Cook so they enlisted the help of Property Mavens.
After we determined which three agents best suited their needs, Clara and Jason selected their chosen agent and the sales and marketing process began in earnest. This resulted in four bidders competing for their wonderful home at auction, and a sale contract in excess of their dream price.
In their words, Clara and Jason found our fantastic guidance and assurances to trust the process to achieve the best outcome invaluable.
As professional property buyers and vendors advocates, we know the difference between a bad selling agent and a great one. If you would like help to secure a fantastic outcome like this one, whether it’s selling a family home or an investment property, and you’re ready to get started, click here to book a time to discuss your requirements. It’s 100% obligation free.
Darrien and Terri were seeking a strong capital growth and cashflow property, so they engaged ourBallarat buyers agent services to help.
With a good budget and in a hot and very fast rising market, Darrien and Terri wanted to purchase a low-maintenance property with potential for capital growth while delivering a strong yield in the interim. We were able to successfully purchase this fantastic property, a 3-bedroom, 1-bathroom renovated period house, in what is a highly competitive market, in Ballarat
Using some lateral thinking in an insanely hot market, we bought this off-market A-grade property prior to renovation completion, with a set of special conditions that protected our client and resulted in a win-win for all parties. It was purchased at market value, delivering a 4%-plus yield.
As professional property buyers we know the difference between a bad property and a good one, where to buy to generate the strongest returns, how to buy to secure the best result, and what properties are really worth, to ensure our clients don’t pay too much. If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
Go Forth and Prosper !
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If you want to invest or buy the right home for your budget, or sell your property click here to book a time, or call us for a chat about securing your financial independence.
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At Property Mavens we choose to give back to help create social change within our business model. If you use our buyers or vendor advocacy services, you will be helping to make a positive impact within the local and wider community.