The housing prices in Melbourne soared in January. The housing prices crossed $1 million for the first time in history. Given the impact of covid-19, it was shocking. Brisbane continues to perform the best in terms of the percentage of price rise. It witnessed a real-estate price rise of 32.3%.
After the sixth lockdown in Melbourne, buyers rushed into the real-estate market. House prices rose by 5.8 per cent at the end of last quarter in December. The December quarter figures reflect the bouncing of the economy after lockdown restrictions. The buyers had a strong reaction to the lockdown and they were eager to rush quickly into the markets to buy property. Data indicates that in 27 Melbourne suburbs, every house was sold for $1 million.
The gap between the cost of buying a unit and a house is more than $500k. It shows that the buyers in Melbourne are willing to pay high for premium homes. Mornington Peninsula region’s house price rose 11%. The rise has been the highest in this suburb across the Melbourne region. Ferntree Gully and Yarra Glen witnessed the house price to an average of $1 million. The house for sale in Melton has their price doubled up.
Factors that led to price rise
The boom was not a surprise for real estate agents caroline springs. The biggest factor was the Covid wave. Being at homes in lockdowns gave people the time to figure out what they want in their homes. During covid-19, people were resisting heavy spending as a measure against future crashes. Saving cleverly helped the people to invest at the right time.
Economist Mathew Hassan has pointed out the recent price rise is a result of lockdowns and a decrease in immigration. It has affected the labor market.
Another reason is the economic stimulus provided by the government. It has increased the spending power of people. The government reduced the interest rates last year to help people to borrow more. The interest rates were just 0.1%. It has eventually resulted in a huge demand rise. The interest rate will continue till the inflation is within the 3 per cent range.
As far as the activity in the real estate market is concerned, there has been a few disruptions. It is because some of the potential vendors took holidays due to the non-availability of holidays last year. Delays have occurred due to the rise of covid cases. Due to it, people had to isolate themselves in their homes.
We can see a drop in the prices of property in the next year. It is likely to increase up to 8% by the end of 2022. It will fall by 10% in 2023. Auction numbers will increase till Easter. By the mid of this year, we will witness some normalcy in those numbers. Slowly, the buyers will start gaining leverage in the market. Our company is a top-notch real estate company. Our real estate agents have established a successful property network. Real estate agents Caroline Springs branch at our company has brought us tremendous success. If you are trying to figure out, how to sell my property Aintree, you may contact us.