Spring back in the market

Fewer offerings push prices higher

GEELONG home values continue to rebound this spring.

The monthly CoreLogic Home Value Index shows Geelong home prices rose 1.3 per cent since June to $546,000, underlining the resilience in the market.

While the trend lags behind Melbourne, where values rose 3.4 per cent over the quarter, the turnaround ended a negative run where values declined 3.7 per cent from the peak last year.

House values rose 0.8 per cent in three months to $571,000, while units were up 4 per cent to $428,000.

CoreLogic head of research Tim Lawless said lower stock levels and rising buyer activity would play into sellers’ hands, with higher prices anticipated this spring.

Spring property listings are 12 per cent lower than at the same time last year, while auction volumes took a far bigger hit. The CoreLogic research show 463 homes were listed in Geelong last month, 63 fewer than last September.

Increased borrowing capacities aided by falling interest rates (including a cut this week) and relaxed serviceability rules had encouraged more buyers, Mr Lawless said.

“Low mortgage rates and the expectation that they will move lower, along with better affordability, a loosening of credit rules and improved housing sentiment are all factors contributing to the rebound,” he said.

“As buyer activity rises, the lack of available stock could see a renewed sense of ‘fear of missing out’ supporting further price growth.”

Buxton agent David Gray said buyers were more positive, while competition for quality properties was leading to higher prices.

“Those pretty highly polished homes in good suburbs are getting a lot of attention through open homes and four or five bidders on auction day,” Mr Gray said.

“As cliched as it sounds, there hasn’t been as much on the market the last few months in comparison to last year and buyers have to compete for what’s there.”

More than 25 properties go to auction this weekend.

Among them is Royd Grange, an ornate Federationstyle homestead built for the founder of textile giant Godfrey Hirst at 2 Royd Grange Court in Belmont.

Owned by the Notley family for about the past 40 years, its sale offers a chance to rejuvenate one of the city’s grand old dames and take advantage of the 1893sq m north-facing block.

Buxton agent Tony Moorfoot will auction the fivebedroom house tomorrow at noon with price hopes of $1.35 million to $1.45 million.