Our home values on rise

Rate cuts help drive property market rebound

GEELONG home values are continuing to recover as October interest rate cuts fuelled the property market, new figures show.

CoreLogic’s Home Value Index revealed Geelong dwelling values had climbed 1.7 per cent in the past quarter to more than $545,000.

CoreLogic head of research Tim Lawless said the strongest growth was found in Melbourne and Sydney, where the most expensive price band had the biggest rise.

Regional cities, including Geelong, had also outperformed other capitals, he said.

“It’s becoming increasingly clear that the housing market rebound is gathering pace off the back of lower mortgage rates and improved access to credit, as well as an improvement in affordability relative to the market peak,” he said. Mr Lawless said high demand through population growth was also fuelling the growth.

Geelong auction clearance rates are also rising, reaching 67 per cent last weekend, while agents are reporting it was clear more people were looking to buy.

The index was released a week after the Federal Government revealed the local ceiling to its scheme to help first-home buyers get a deposit where it will offer loan guarantees for properties in Melbourne and Geelong worth up to $600,000.

Across the rest of the state, eligible buyers will be able to access it when purchasing a dwelling worth up to $375,000.

The Government will be guarantor on mortgages for 10,000 first-home buyers on a first-come first-served basis starting in January.

But Ray White, Lara agent Terry Cleary said the scheme wouldn’t have a major impact on the market because it would be fully subscribed in a matter of months.

But he said it was clear firsthome buyers were more active in the market, especially hunting for property that falls within eligibility criteria for the State Government’s $20,000 regional first-home buyer grant.

Under the scheme, a house, townhouse, apartment, unit or similar must be valued at $750,000 or less, be the first sale of the property as residential premises and the home must be less than five years old.

“First-home buyers are inquiring on anything that looks new, that is less than five years old. If they can get into a house that has the original owner and is under five years old, they still qualify for the first-home owners grant,” Mr Cleary said.