The Positive Signs of Real Estate Market Recovery
The Melbourne market is bouncing back post lockdown.
The real estate market has been a great example of how resilient Australians are, and how good their strategy for dealing with the pandemic has proven to be. It’s been a very big year, with plenty of firsts and some uncertainty about how events would play out.
Now that lockdown is over in Melbourne, the real estate market is already bouncing back. CoreLogic recently released reports that outline how the numbers have improved nation-wide, and how the end of the Victorian lockdown has shown particularly healthy growth.
Here are some of the most positive signs that show the Melbourne real estate is well on its way to recovery.
Business as Usual
As the Victoria lockdown lifted, the real estate industry showed no delays in getting things back to normal. It was announced that private home inspections were once again allowed, and there was a resulting surge in activity in the Melbourne real estate market.
The ability for buyers to inspect homes in person and to conduct themselves normally has led to the continuation of a thriving market. Property listings have shown a marked increase, clearance rates have lifted, and it’s becoming obvious that the temporary setbacks brought about by the lockdown will soon be in the past.
House Listing Increases
The number of listed properties is a great indicator of the confidence sellers have in the current environment. Nationally, there has been a notable increase in house listings between September and October, with the number of listings rising by 6.5% across the country.
Melbourne has done even better. While all capital cities have reported an increase in listings, Melbourne’s improvement far eclipsed the other states with a massive 26.7% surge. And it’s not just more houses on the market. The higher number of available properties has corresponded with a higher number of purchases, meaning the real estate market is thriving.
Asking Prices Increase
While some sellers might have experienced some uncertainty and logistical concerns with getting their houses sold during the lockdown, the asking prices have not dipped as a result. On the contrary. According to data from the CoreLogic Home Index from November – now that the lockdown has ended, Melbourne properties have actually seen an increase in asking prices.
Homes are doing better than units at this stage, but both have shown growth in their asking price. With all this improvement happening so soon after the lockdown’s end, it’s a great sign for Melbourne real estate.
Regional Prices
While properties in the city have shown an increase in asking price, the end of the lockdown has seen a surge in the asking prices for regional properties. One of the reasons comes directly from lockdown – with so many businesses forced to find remote solutions, workers are now more comfortable with the “working from home” lifestyle. That means their residence can be further away from their place of work, broadening the scope for homebuyers who would traditionally stick close to the CBD.
But it’s not the only factor. CoreLogic’s Head of Research, Tim Lawless said “The newfound popularity of working from home is only one factor helping to support regional home prices. More affordable price points, lower densities, and lifestyle factors, are also under-pinning the relative strength across many regional areas of the country.”
Consumer confidence
Ultimately, consumers are showing confidence in Australia’s ability to bounce back from any obstacles, and that confidence has underpinned the recovery of the real estate market. Recovery has been smooth, which has helped keep the market on an even footing – an increase in house listings has corresponded to an increase in buyers, so saturation of the market has not been an issue.
Government incentives and policies have gone a long way towards inspiring consumer confidence. With record low interest rates and the majority of workers making it through the lockdown with some form of employment or support intact, buyers are searching, and sellers are still doing very well.