‘Strong demand’

The Wimmera real estate market is steady and strong, Horsham real estate leaders say.

Gerry Smith and Co managing director Gerry Smith said there was strong demand for residential properties, with prices stable.

“There’s more coming onto the market than this time last year,” he said.

“Interest rates have impacted some people entering the market.

“It looks like it has settled into a trend that is reasonably stable and unless there’s a dramatic change in interest rates, I think it will stay that way.”

Harcourts Horsham director Mark Clyne said the market was picking up following the Christmas break.

“There are a few first-home buyers around and people moving between places,” he said.

“Homes that are established and don’t need any work done are at the top of people’s lists

“However, investors are a little bit quieter at the moment because of higher interest rates, and they make up about a third of the market.”

Alongside usual peaks and troughs, in 2022 the Victorian property market experienced eight interest rate rises, however Real Estate Institute of Victoria, REIV, reports the market remains strong.

REIV’S December quarterly median report revealed regional Victorian house prices grew eight percent throughout the year to $610,000.

REIV president Andrew Meehan said the December data demonstrated good buying opportunities for Victorians and a resilient real estate market across the state.

“The drop we’ve seen in the median prices in metro Melbourne must be seen in the context of the rapid price growth Victoria has recorded over the past two years,” he said.

“Property prices remain higher than they were in December 2020 – the POST-COVID real estate boom has placed Victorian property in a stronger position than ever before, a trend we continue to see across numerous suburbs in metro Melbourne and our regional areas.”

Solid rise

Online property site www.real estate.com recorded the median house price from January to December 2022 in Horsham was $370,000, an increase of 6.9 percent in 12 months. Units sold for a median of $340,000 last year.

Five years earlier the median house price was $262,250.

Ararat’s median house price for 2022 was the highest in the Wimmera at $400,000 — almost double the $203,000 median in 2017. The 2022 median price represented a 26.3 percent increase from the previous year.

Houses in Stawell sold for a median of $355,000, $227,720 in Warracknabeal, $200,375 in Nhill and $227,000 in Edenhope. The increase across these towns over the previous 12 months was between eight and 26 percent.

Mr Clyne said some prices remained high as people looked to buy established homes.

“Some people are paying a premium on a house that might be $50,000 to $100,000 overpriced because they don’t want to wait for a build and the high price is left over from the boom,” he said.

“We’re not necessarily setting records, but there’s still plenty of activity.

“Demand for subdivided land is easing because builders are quoting two-year waits and people don’t want to be paying interest for those two years.

“It’s different to two or more years ago when people were using the bonuses and government incentives to buy.”

Mr Clyne said he expected demand for houses to increase in coming years.

“If the projects such as mineral sands and solar power start at the same time, we are going to see a jump in demand,” he said.

“Tradies are flat out. We need more people to move here who move into a trade role and help.

“The Wimmera is in a unique spot historically with a broader range of income for the region, beyond farming, with schools, health, agribusiness and more.

“That means Horsham is growing as a hub and confidence is good that housing will keep ticking along well.”