The outlook of the Australian property landscape is growing progressively brighter according to recent reports from the Domain Quarterly House Price report. The most recent data reveals that the fall in house prices around Australia, in general, is easing significantly, with house prices slipping by only 0.4% during the June quarter. This follows a fall of approximately 2.2% in the 3 months leading gup to June. Prices have also begun to rise in three major cities.
The latest housing report suggests that prices have seen modern growth in Melbourne, as well as across Canberra and Hobart recently. Elsewhere in Australia, prices are dropping less rapidly, indicating positive momentum for almost every capital. The fall in the national median unit price also
slowed on a quarter-by-quarter basis, reducing to 0.2% instead of the worrying 2.3% previously.
Addressing the Changing Marketplace
In a discussion about the improving house prices, an Economist named Trent Wiltshire suggested that the latest report reflects the predictions he previously made about an impending market turnaround. Wiltshire also noted that national prices are expected to begin balancing out by the end of the year, with growth ready to take place in 2020.
Wiltshire also noted that in the eight weeks since the election, there has been a significant change in the marketplace. During this time, the recovering housing market was bolstered even further, but the impact of the election wasn’t covered fully in the June figures. The current observations and data in the market suggest that the confidence in the real estate market throughout Australia is building again. Just as many economists predicted, things are beginning to take a positive turn.
The Price Growth in Melbourne
While things are looking positive for all regions across Australia in the latest report, Melbourne has a particularly strong reason to celebrate. The property price growth in Melbourne was so significant that it moved the value of houses in a positive direction. Melbourne was the only capital that could claim a positive price change in the recent report. According to Mr. Wiltshire, this came as quite a surprise, as the turn around for Melbourne came ahead of predictions.
The good news is that the changing marketplace indicates that Melbourne’s biggest downturn since the 1980s may be finally coming to a close. In the first jump since December 2017, Melbourne’s average house prices have risen by 0.3% this June quarter, to a value of $818,200. However, the
prices remain 10% lower than Melbourne’s peak in 2017.
Unit prices in Melbourne have also been strengthened according to the recent report, with Melbourne appearing as the only capital city to record a rise by 2%, up from $501,000 in the latest report. Mr Wiltshire also revealed that there were further positive signs of growth in Melbourne. More buyers are attending open houses in the city, and the auction clearance rates are reaching new highs similar to the rates we saw in November 2017.