While many property analysts anticipated a market recovery in the second half of 2019, very few were able to predict the speed and strength of the upward price trend once it began.
The federal election result improved buyer confidence, interest rate cuts boosted buyer capacity and low numbers of homes offered to the market created a competitive environment. These factors combined in a ‘perfect storm’, driving an increase in median house prices across many Melbourne suburbs. Coveted regions within Boroondara fared particularly well. According to REIV data, house values in Kew grew 17.8 per cent in the December quarter, with Hawthorn recording growth of 9.4 per cent. Meanwhile, unit values in Hawthorn East performed strongly, recording a jump of 16.7 per cent in December.
Here at Woodards Camberwell at the end of 2019 we had record months for selling properties throughout Boroondara and see no reason for the momentum to stall. Vendors who have been holding back are now ready to act. First home buyers are back on the scene, bolstered by the Federal Government’s First Home Loan Deposit Scheme. The pent up buyer demand will take some time to be absorbed by the market, so we expect to see high clearance rates and impressive sales results well into the second half of 2020.
We had a number of notable sales towards the end of last year. A home in original condition in Berkeley Street, Hawthorn sold for $3.66 million, more than $1m above reserve. May Street in Deepdene was a hive of activity, with one of our lead agents Maria Xu, who is now the #1 ranked agent in Deepdene, listing five properties in just under three months. So far these have achieved a combined value of $18.5 million, the highest result being for 5 May Street, which fetched $5.68 million. Results of this calibre suggest the top end of the market is looking very healthy indeed.
We expect to see more homes come onto the market as the year progresses, so I would advise potential vendors to list their property before the competition heats up. It makes sense to market your property when there are fewer comparable homes for sale. Unless outdoor entertaining is the starring feature of your property, there’s no reason to hold off until spring. Prepare your home well and it can also shine in the cooler months - a time when demand doesn’t abate but supply often does.
Don’t risk underselling your property. Make sure you appoint an agent who has the time, energy and focus to give your property the attention it deserves. RateMyAgent has named Woodards Camberwell the top agency in both Deepdene and Karen Chung and the most recommended agent in Hawthorn East. This is welcome feedback for our hardworking professionals who always strive to provide the very best service for our valued clients.