A Reflection of the Hot Market
As the nation stopped for the Anzac legends so did the auction scene which almost went to a standstill. This breather gives us a chance to give a nod to the 2014 market which has been defined by pent up demand. When forecasting the next eight months, the economy, home loan data and interest rate conditions are all key variables to take into consideration.
Statistics have revealed that Melbourne house prices have increased 11.7 per cent over the year ending March, the best annual result since the year ending the September quarter 2010. Melbourne’s house prices are now 7.7 per cent higher than their previous cyclical price peak recorded over the June quarter 2010. The median house price increased by 2.8 per cent to a new record high of $604,110 which is the first time Melbourne’s median house price has exceeded $600,000. In the Inner West, the following median prices have been recorded. Newport- $733,000, Williamstown- $895,000, Seddon- $722,500, Altona- $670,000, Altona North- $531,500, Footscray- $611,000, West Footscray-$640,000 and Sunshine- $435,000.
While Winter is typically defined by a more subdued property cycle, Director of Compton Green, Adrian Butera analysed the evidence to date and gazed into the crystal ball. “The overall trend will continue to go upwards. Last year, the market was healthy but this year confidence appears to be stronger due to the domino effect. One home sells and neighbours or those in the suburb are realising expectations are being exceeded so auction bookings continue to naturally build up,” he said.
As always, the barometer of the property market will be determined by the Reserve bank’s attitude to setting monetary policy. So far, interest rates are at their lowest in 60 years and this will continue to energise and fuel the market. Will they go up, down or stay the same is a question often asked, however media speculation and economists have continued to hint throughout the year that the RBA is likely to leave interest rates steady through most of 2014.
On the auction front, sheer determination and a fear of missing out continues to unleash into a game of tug of war in the Inner West. At a majority of our auctions, there are often a series of multiple bidders who enthusiastically shoot up their hands while the crowd response to “Why do you want to live in the Inner West?” most commonly receives a response revolving around the charming streetscapes, growth, lifestyle factor and the close proximity to the CBD.
27 Anzac Crescent, Williamstown recently sold for $1,138,000