One of the most common topics we get asked about here at PhilipWebb is what the property market is like, and what it is going to do in the future. Now, as we all know, forecasting the future is not an exact science. However, we thought you might be interested to know what some of the major forecasters are saying.
In looking to the future, it is worth remembering that the latest figures from Domain show that the median house price in Melbourne rose by 5% during the last quarter of 2019 alone. This capped off a year where prices rose by 8.7% from the end of 2018, which caught most market observers by surprise, particularly when you remember that the bottom of the recent correction occurred as recently as the March quarter of 2019.
Looking ahead, Domain’s most recent forecast (released in February), predicts that Melbourne’s median house price will surge 8% by the end of 2020, then rise a further 3-5% in 2021, with the median house price breaking through the $1 million barrier as early as mid-next year.
Over at Corelogic, the forecasters there are equally bullish. They have predicted that Melbourne’s home values, fuelled by a stronger economy and higher population growth, could rise by as much as 14% this year, outstripping the growth of other capital cities like Sydney.
It is important to remember that these growth figures relate to the Melbourne market as a whole, as there can be substantial variations between different areas of our city. For example, whilst the inner suburbs recorded the strongest growth during 2019, the area that showed the strongest growth in the final quarter of the year was the outer east… a pleasing result for many of our clients.
The key advice for anyone considering making a move in 2020 is not to rely simply on broader market statistics, but to obtain an up-to-date assessment of your specific property from one of our experienced team members here at PhilipWebb.
Keep in mind, we are always happy to provide this information for you without cost or obligation.