2022 starts with high demand and high values
In January’s last weekend the Real Estate Institute of Victoria (REIV) recorded more than 598 auctions. 489 properties sold, 354 at auction, with 109 passed in. 134 were sold before auction & 1 property was sold after auction. The clearance rate was 82%, up on December’s 76%.
With the peak summer holiday period over auctions have quickly jumped back into gear. Buyer competition is strong and clearance rates are high.
A unique set of drivers is shaping the market with low interest rates, more people wanting to work from home, and pent-up demand after the lockdowns in 2020 and 2021. All good news for vendors! The complex effects of the Omicron Covid strain are still playing out but are unlikely to dampen the market.
The dramatic increase in home values and equity over the last 12 months makes 2022 an exciting time for vendors, with opportunities to revitalise finances, upsize their home, or action retirement plans. It’s a great time to take advantage of the gains. Especially with Vendor Marketing guiding you to a maximum sale price.
Homeowners reap the benefits
According to the REIV houses in the middle Melbourne family zone are achieving a $1.23M median price, having jumped a big 18.3% in value over 2021. Outer Melbourne houses have a median of $815,000 now and gained 16.4% over the last year.
Those are big figures, but parts of Regional Victoria trumped them with a 27% gain in median house value.
Coastal suburbs are also star performers, anywhere around the bay or near the ocean outside metro Melbourne. New arrivals flooding to these areas are bringing big equity gains for locals and those choosing to sell.
What’s ahead for 2022?
Although modest gains are expected in 2022, it almost certainly can’t repeat the big value growth of 2021. Affordability is a limiting factor and although the Reserve Bank is resisting pressure to lift interest rates this year, they are set to rise overseas (Fortune) and Australia will likely have to follow.
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