The REIV’s latest data for the September quarter shows that Melbourne’s median house price remained the same as it was in the June quarter, at $834,000.
The property boom experienced by Melbourne and Sydney could not continue. A correction in the property market was inevitable. This is not such a bad thing in the context of long-term sustainability and affordability.
Property is still selling but the urgency to buy has dropped off considerably. The tightening of the banks’ lending guidelines together with the Bank Royal Commission’s exposure of their appalling behaviour have collectively contributed to a drop in consumer confidence and the changing market conditions.
The only postcodes in Manningham which had a reasonable number of sales to make the figures meaningful were Doncaster and Doncaster East. According to the latest figures, Doncaster had a 13% drop in prices for the quarter, while Doncaster East had a fall of 6.2%. All other postcodes in our area recorded less than 30 sales for the quarter which makes their statistics less reliable.
The data also shows that over the last 12 months the value of homes sold by Private Sale was 13.6% higher as compared to those sold by Auction which only achieved 0.6% increase in value.