30th June 2017: 2017 End of Financial Year Update

We have reached the end of financial year at a rapid pace, which is the perfect time for a real estate update!

Whilst temperatures have progressively cooled, Melbourne's auction market remained hot, with the highest number of homes selling under the hammer in autumn. REIV data shows that more than
9,160 homes sold at auction the first quarter of 2017 – a 7.6 per cent increase on the previous record set in 2015. Clearance rates and auction volumes have been consistently high, demonstrating the level of vendor and buyer confidence in the market.

Data from the Domain Group shows that Melbourne's median house price rose by more than $110,000 in one year. The median cost for a house in Melbourne jumped from $732,104 in March 2016, to $843,674 in March 2017. The number of million dollar suburbs in Melbourne has quadrupled in the past five years, with REIV President Joseph Walton noting that "around 90 per cent of all suburbs within 10km of the city now have a median house price of $1 million or higher, with these areas amongst the most sought after by buyers".

Population growth is another factor to consider when assessing the viability of the property market. Victoria is Australia's fastest growing state, with the population of Greater Melbourne increasing by 2.4 per cent last year. Generally, about two-thirds of Victoria's population growth comes from migration, with the other third from births. Population expert Glenn Capuano notes that "population growth and property prices have a strong correlation".

Historically low interest rates are undoubtedly another key factor in motivating people to make a move – whether it is to buy, sell, or invest. Put simply, real estate offers both security and profitability. Several budget and legislative changes are also taking effect on both a national and state level that directly impact the property market. For example, the government's First Home Super Saver Scheme will enable first home buyers to use their superannuation account to accelerate their savings.

If you would like to discuss any of these factors or to arrange a time for a complimentary, no-obligation market appraisal of your own home, please don't hesitate to get in touch with your local Fletchers agent or office!