2018 saw clearance rates across the city drop to below 50%, however the Real Estate Institute of Victoria’s (REIV) latest data reveals that Melbourne’s median house price increased 1.4 % to $826,500 (from $815,000) with the unit price increased 1.8% to $597,000 (from $586,500) in the 2018 calendar year.
REIV President, Robyn Waters, reports that neither the drop in buyer confidence nor the 20% reduction in sales has made a significant dent in Melbourne’s median house price.
“It might take you a bit longer to sell, and you might have to put in a bit more effort, but the big picture is showing that house prices have increased slightly over the past 12 months,” Ms Waters said. “Confidence is a major factor in the property market and the latest REIV data shows the market overall is steady, coming off an increase in the median house price of 13.2% in 2017 which could not be sustained.”
As we move into 2019, it is expected that buyers will continue to act with caution influenced by tighter lending conditions. But despite initial caution, overall sales figures indicate that buyers are willing to take the leap for a well presented property, priced at market value, in the right location.
The REIV expects Victoria’s property market to remain steady in the first half of 2019 as the outcome of the banking Royal Commission and Federal Election are announced, but things should begin to look up again in the second half.