Property values increasing
There is good news for Benalla homeowners and property investors with the Real Estate Institute of Victoria (REIV) highlighting an increase in average property values of 8.8 per cent in the past 12 months.
Benalla Residential Rural’s David MacKinnon said while there had been a rise, the actual figure might not be quite as high.
‘‘Pricefinder, who we use, lists 2017 median rising 6.3 per cent on sales of 297 houses, which is the largest number since 2002 when 325 house sold,’’ Mr MacKinnon said.
‘‘They quote 2016 with the same 6.3 per cent, which is highly unlikely.
‘‘This is the reason I have some doubt about the accuracy of the stats. Currently they have 6.4 per cent for 2018.
‘‘There’s a couple of reasons for the activity . . . The state government reintroduced stamp duty relief for existing houses for first-home owners and they came back into the market in strength.
‘‘They were competing with investors, many from Melbourne and other larger centres, but also Benalla, who were gambling for a start that the John Holland consortium would get the go ahead.
‘‘When it did, selling a house in the $180 000 to $300 000 didn’t take very long.
‘‘I believe that pace has slowed currently, which it normally does in winter anyway, but I get the feeling that the market will continue to rise for the remainder of 2018 as we get closer to when the various new businesses actually start producing.
‘‘With the explosion of new jobs in such a short time I see the market settling down next year unless there are employees of these businesses who commute from centres like Wangaratta or Shepparton who decide to move to Benalla.’’
With constant talk of the Melbourne housing bubble and its projected collapse, some potential buyers might be holding off to see what the future brings.
However, Mr MacKinnon said the Benalla market would not necessarily be affected by what happens in big cities, at least not at the same pace.
‘‘The Melbourne and Sydney markets are driven by speculation and cheap money,’’ he said.
‘‘The Benalla market driven by jobs.
‘‘We have been crying out for new businesses to come here and we can thank the new council for getting it done.
‘‘Right now banks are raising home and investor loan interest rates.
‘‘This, combined with falling prices in Melbourne, I believe the speed of decline in house prices will pick up.
‘‘The loans are far higher in Melbourne compared to here, so the impact of negative equity in a loan will be sooner rather than later.’’ is
On the way up: Benalla property prices are on the rise.