Houses and land for sale in the Geelong area have increased by as much as 12.1 per cent in September year over year, and yet median prices remain more affordable than a similar property in Melbourne.
Buyers should take note that falling average prices in Melbourne have contributed to a decline in Australia’s home values for the 13th month in a row. However, the median price of a house in the capital city amounted to more than $665,000 compared to $530,000 in Geelong.
Some property experts say that Geelong has bucked the trend of a price slowdown in Victoria without having to worry about paying off a huge mortgage. Stricter lending rules can also make it harder for buyers to acquire their own property, which is more noticeable in cities like Melbourne.
Interstate migration might have been a factor for the higher price in Geelong. As many as 3,500 people outside of Victoria relocated to the city, while another 3,500 came from within the state. This eventually drove a higher demand for homes, hence the price appreciation.
The price slowdown isn’t exclusive to Melbourne, as home values in Sydney and Perth have also dropped by the end of October, according to a CoreLogic index. The median price of a home in Sydney costs almost $834,000 as of Oct. 31, down 7.4 per cent year over year.
In Perth, prices dropped by 3.3 per cent to more than $451,000. Even if you don’t plan to buy a house as an investment, the availability of listings becomes a concern since most owners in these cities aren’t willing to price their property on the market at a possible loss.
Melbourne might still be a great place to buy a house for reasons other than expensive home prices, yet there are alternative places that offer the same quality of life for a smaller value.