What are House Prices doing in Melbourne? That’s effectively what people are focussed on when they ask us about our thoughts on the market. Are prices up, down, or sideways? And, of course, what does that mean for my property? Melbourne consists of over 400 suburbs. When considering the overall state of the market, we […]
Author Archives: Andrew Stone
Melbourne’s Median $ House Price is up +8%, down -4%, and flat. All 3 figures are true at the same time. Measuring median prices by rolling 12-month periods is the most conservative method for determining market changes. The Median $ House Price for properties sold from July 2019 to June 2020 was $917,000, which is […]
Buyers determine House Prices. Some Buyers look for specific characteristics in a suburb – and they’re willing to pay premium prices. The above graph shows the biggest industries of employment in Melbourne. Some industries are spread throughout the city: Retail can be found in virtually every suburb; tradies in the Construction industry go wherever the […]
House Prices rise when Buyer Demand exceeds Vendors’ Supply of properties for sale. Intense competition between multiple buyers for a specific property typically leads a higher sale price. Think of a crazy auction, where bidding just keeps going up and up and up, and the ultimate purchase price ends up being far about the reserve […]
16
Jun
Jun
Buy Low and Sell High. This is a simple concept in theory but it’s a difficult strategy to execute in practice. There’s no doubt that Melbourne House Prices are being affected by the global economic uncertainty associated with COVID-19. Nobody knows with certainty how steep price falls will be, or how long a likely downturn […]
Wealth is created through asset appreciation not through cashflow – you should prioritise capital growth over rental yield. The most successful property investors recognise this truth, and invest in the type of properties that increase the most in value over time: Houses. Land appreciates in value, whereas the dwellings that sit on land tend to […]
Authored by Andrew Stone, Melbourne Property Market Research
Why Melbourne Real Estate Rates as a Very Good Investment
15
Jun
Jun
Overwhelmingly, the long-term trajectory of Melbourne House Prices has been upwards. The below graph shows the long-term trend in House Prices (grey line) and % Annual Growth (green bars). Over the last 40+ years, there have been 5 periods where House Prices have fallen, each ranging from 3 to 29 months in duration. Market corrections […]
16
May
May
The below graph shows how Melbourne House Prices and the S&P/ASX 200 Price Index have performed over the last 17 years. This historical view demonstrates a few things. Firstly, Shares and Houses tend to move in the same general direction. The correlation makes sense: both are inclined to appreciate in value in a strong economy, […]
Client Case Studies, Purchase Negotiations
Harriet sold her property to me without an agent. She’s very happy. We both won.
30
Sep
Sep
Harriet and her partner have owned their property for nearly 25 years. With their children all grown up now, and the place falling apart a bit, they started talking about selling. Fortuitously, it was around the same time that my team sent Harriet a letter in the mail expressing interest in their property. Would they […]