Melbourne home values gain 0.8 per cent in September as nation rises at record pace in 2021
3 Hopkins Close, Rowville, sold for $1.517m in September — $197,000 above reserve.
Melbourne property values grew another 0.8 per cent last month, but a slowing in pace could give hope to burnt-out homebuyers.
The September boost is the city’s lowest monthly gain since January, with the $775,142 median 15 per cent higher than it was a year ago.
CoreLogic’s latest Hedonic Home Values Index shows Melbourne’s median house value grew 1.1 per cent in September to $962,250, while the typical unit recorded a minor 0.2 per cent increase to $619,443.
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69-75 Webb Street, Warrandyte, sold $640,000 above reserve last month for $2.54m.
Melbourne’s overall property median has risen 13.4 per cent in 2021, showing the ongoing strength of the market.
Meanwhile, Australian home values are rising at the fastest annual rate in more than 30 years.
The national property median rose 1.5 per cent to $674,848 in September.
That equates to 17.6 per cent in the first nine months of the year and 20.3 per cent over past the 12 months — the fastest pace since the year ending June 1989.
CoreLogic’s Australian head of research Eliza Owen said Melbourne properties were still “seeing high rates of growth”.
She said the slowing pace was indicative of a national trend, but added the city’s median house price “does seem to be trending towards that million-dollar mark”.
“It’s really interesting because the trend we’re seeing across Melbourne is a trend reflected nationally,” she said.
“The monthly growth rate nationally peaked in March this year, and it’s the same for Melbourne.”
23 Elsie Mews, Brunswick East, sold for $1.368 in September.
CoreLogic’s head of research Australia Eliza Owen.
But there were significant differences in the rate of growth across Melbourne depending on region.
In the west property values were up about 9.5 per cent on the year to August, Ms Owen noted, while affluent areas such as the Mornington Peninsula surged more than 30 per cent this year.
Meanwhile in regional Victoria, a typical dwelling jumped 1.3 per cent in value in the past month and a massive 22 per cent annually to $509,451.
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The report also predicted s spring a rise in stock levels could “take further heat out of the market as buyers benefit from more choice and less urgency”.
CoreLogic’s research director Tim Lawless named fewer government incentives and greater barriers for entry-level buyers as behind the slowing rises.
“With housing values rising substantially faster than household incomes, raising a deposit has become more challenging for most cohorts of the market, especially first-home buyers,” he said.
“Existing homeowners looking to upgrade, downsize or move home may be less impacted as they have had the benefit of equity that has accrued as housing values surged.”
The report also noted that “any new credit restrictions will focus on minimising further accrual in household debt”.
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alanah.frost@news.com.au