October property report
It is a common question to ask, but there is definitely some merit to it. We are constantly asked at Integrity Real Estate how the market is doing. But despite whether ‘the market’ goes up or down, there are generally some key indicators as to whether your property is going up, going down, or even going sideways. The last 5 years has seen incredible growth for the local economy. It is amazing to think that a regional district with less than 1500 people in the township has seen such growth in such a short period of time. 2018 marked a period in property prices where across Melbourne, prices had reached their peak. Yet still today we see some properties sell for more. 2 years on has there been much more growth? Have prices gone down as a result of Covid-19?
In 2015 the data provided by the REIV showed the median house price in Kinglake was $325,000, which was fairly consistent with the average median house price for regional Victoria at the time being $342,000 in the third quarter of 2015. 5 years on and the area of Kinglake has seen astronomical growth with a median house price of $605,0000, surpassing the median house price for regional Victoria of only $443,000, so it begs the question, what happened is the last 5 years? Have we not recognised enough that we have been one of the highest performing regional towns in the sector? It is easy to think an area is considered ‘cheap’ when compared to Metropolitan Melbourne, but affordability of space in a regional lifestyle has always been the drawcard that tends to drive people to buy further out. So has there been much growth in the last 2 years? Well when comparing the figures to 2018 there actually hasn’t been much growth. The second quarter of 2018 saw the median house price for Kinglake achieve $565,000, and by the first quarter of 2019 it had risen to $580,000, but that has not been the highest median average on record. In the second quarter of 2019 the median house price achieved a whopping $690,000, when compared to Whittlesea’s average at the time of only $645,000, it’s an incredible return.
2020 has been a year most will want to forget, the frustration with government, the restrictions imposed, the huge affect on businesses, mental health and family, we’ve all felt the brunt of Covid-19. Our community has been incredibly resilient during this time, and the local property market has too. So although there has been a slight dip in the ‘numbers’, rest assured it is only because there has been minimal properties on the market, and the properties that have sold have mostly been around $600,000, so naturally it is going to affect the median price. We want to encourage everyone that during this uncertain time, no matter what decisions you are needing to make this year or next year, your house, your investment, your home, is safe, and has performed well.