Real Estate 2012 Summer Bayside Market Report
With December Quarter median house sales prices down for most Bayside suburbs, will the future of 2012 housing prices increase, decrease or shift sideways?
Even though our Melbourne median house price rose slightly to 1.9% in the December quarter to a median price of $550K, home sale prices were down overall 5.2% compared to 2010 as found by the Real Estate Institute of Victoria (REIV).
From the Bayside suburbs of Hampton down to Mordialloc, the strongest performer was Sandringham reporting a 7% increase over the December quarter to a median price of $1,150,000. The weakest performer from the group was Parkdale down 9.1% with a median price of $750K.
The REIV indicate the key factors driving our current market are lower consumer confidence, slowing state economy and an increase in supply. The AGE (21st Jan) reported the the Victorian economy had 2.7% fewer home loans last year to November while the rest of Australia had a 5% increase.
With lower house prices occurring, two interest cuts late last year, and the Reserve Bank to meet on the 7th February, most of us are hoping the rate cuts will continue. As the real estate sales follow cycles, if history is anything to go by, the mid 1990s showed a similar cycle with a later housing increase. There is a very interesting Research & Discussion paper the Reserve Bank’s website has released on the economy and housing over the last decade that you should read if you get a chance. Here’s the link RBA Housing & the Mining Boom
Until the real estate cycle turns upwards, there are certainly some great properties to buy. In some cases for example you can purchase a property in Beaumaris for less than what it sold for back in 2007. I know I’ve got my eye on a few!
Enjoy the Summer break.
The Property Matchmaker.