As I was preparing for my speaking spot on Midday Panorama (NorthWest FM radio) with Vilma Formosa, I found it interesting to compare how the different suburbs of Melbourne are faring. What I discovered, of course, is a slightly different picture to what the media feeds you.
You’re most likely reading that the Melbourne median house price is down 5.6% for the year and more doom and gloom is on the way. But you need to be very careful regarding what you digest as fact, without doing your own due diligence around the suburb you are planning to consider to buy or sell in.
That 5.6% statistic is a very high level view across all of Melbourne’s 300+ suburbs. There is no way a suburb in Melbourne’s West is going to be priced identically to a suburb in Melbourne’s East. This is where the danger lies for those who just blindly buy into the hype the media are selling you.
In 2018, Melbourne’s Inner South was down 9.4%, averaged across a number of suburbs (FYI South Melbourne was down 17.26% for the year). Melbourne’s Inner East was down 11.7%, averaged across a number of suburbs (FYI Hawthorn was down 23.18% for the year). Right away you can see both of these statistics are below the 5.6% figure reported for Melbourne house prices.
When we delve into an individual suburb, you get a clearer picture. For example, in Melbourne’s north, houses in Pascoe Vale are up in price 1.4% for the year but down 2.67% for the quarter. Pascoe Vale unit prices are up 8.41% for the year and up 3.55% for the quarter. Broadmeadows is up 10.48% in price for the year and up 0.17% for the quarter. Essendon house prices are up 6.07% for the year, with a 3.13% increase for the last quarter. One size does not fit all.
Pick any Melbourne suburb and you will see different percentages. Considering a specific focus paints a far more accurate picture regarding house prices in any particular suburb than any generalisation ever will. You need to know the numbers.
Are some buyers having a tough time getting finance? Yes. Are vendors having to be more realistic with their expectations? Of course. I said as much in The Sunday Age on the weekend.
But people will always need to buy and people will always need to sell. In a market littered with tales of woe, it is just a matter of keeping a level head and understanding the statistics that specifically apply to the suburb you’re looking at. Line up your own group of ducks that you’ve sourced yourself. If you need a hand, you know where I am.
Give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
By Wendy Chamberlain
Copyright 2019 | All Rights Reserved
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.wendychamberlain.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.