WHAT an interesting year 2016 promises to be, with a federal election on the horizon, the prospect of interest rate hikes, the continued crackdown on foreign buyers and lending curbs on investors.
These could all have a big impact on Melbourne’s property market.
We started to see the market change towards the end of last year. Auction clearance rates dropped off as the number of homes on the market peaked and the heady price growth seen through much of 2015 started to peter out.
The latest CoreLogic RP Data Hedonic Home Value Index confirmed the shift, showing home values grew just 1 per cent in December after slumping 3.5 per cent in November. The December rebound saw Melbourne post a 1.9 per cent fall in median home value for the final quarter of 2015 and round out the year with a $610,000 median price.
Most experts expect prices to keep growing, at least in the first half of this year, but at a more sedate pace.
“While growth may not be as strong as last year ... a citywide population upturn and low interest rates both signal consistent buyer demand in the first quarter, and into the second quarter, of the year,” Real Estate Institute of Victoria chief Enzo Raimondo said.
With the Melbourne auction market still a few weeks away from any real action, buyers can turn their focus to private sales and to the coastal market.
CoreLogic RP Data reported more than 560 new listings last week, including 11 in Rosebud, seven in Rye, four in Blairgowrie and two in Portsea.
One of the Portsea offerings is the six-bedroom fourbathroom house at 12 Charlton Court.
Known as Amagansett, the luxury Hamptons-style home with heated pool, spa, tennis court and wine cellar is on the market with Kay & Burton’s Liz Jenson for $3.5 million-plus.
Ms Jenson said there was not the usual volume of property for sale on the Mornington Peninsula this summer.
“It’s totally different this year. We normally have a strong summer and then it slows down after Easter but in 2015 it started at Easter and went all the way through,” she said.
“Because we kept selling in the off season there doesn’t appear to be as much on the market this year.”
Amagansett, the sixbedroom, fourbathroom home at 12 Charlton Court in Portsea.