Maxwell Collins agent Eugene Carroll, right, said buyers are spoiled for choice as the market hits its spring peak. Picture: Peter Ristevski
NEW house price data should give homebuyers reason to smile with signs the heat is starting to come out of Geelong’s property market.
The Geelong data released exclusively to the Advertiser to coincide with the latest CoreLogic Home Values Index shows no change to home values for the month of October.
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Auctioneer Shaun Carroll calls bids at 32 Laurel Bank Parade, Newtown, which sold for $1.92 million on October 27. Picture: Mike Dugdale
The median value for houses, which makes up 85 per cent of transactions, dipped 0.3 per cent drop for the quarter.
On annual terms, Geelong’s median house value rose 11 per cent to $588,000.
Unit values increased 15.6 per cent annually to $420,000.
CoreLogic senior research analyst Cameron Kusher said while the figures show Geelong was still quite a strong market, the monthly and quarterly data suggested some of the heat was coming out.
“There has obviously been strong growth in values over the past few years, I think that we’re finding is in Victoria people are starting to target other regional areas nearby to Melbourne because Geelong doesn’t have quite the affordability advantage that it used to,” Mr Kusher said.
The Balinese hut-style pool house at 121-123 Homestead Drive, St Albans Park, which sold for $1.05 million in October.
“If you look at the median value for Geelong, it’s more expensive than in Brisbane, Perth and Adelaide.
“It’s not as cheap like it used to be, so that’s why you’re starting to see some of the heat coming out of the market.”
Maxwell Collins, Geelong agent Eugene Carroll said buyers were aware that properties needed to be well priced.
“We’re still getting good inquiry for new listings. It comes back to the basics of real estate — get the price correct, present the property well and you’ll find it sells,” he said.
Samara Hinton and Jayden Little have transformed an old Barwon Water building at Anakie into an industrial-style home that’s hit the market. Picture: Alan Barber
Mr Carroll said stronger lending rules in the wake of the banking royal commission meant more people were seeking to negotiate for properties, leading to multiple offers in the days after an auction.
Geelong’s auction clearance rate was 60 per cent last weekend amid a surge in properties offered and remains the strongest in the country.
“We’re still getting a cross section of buyers. First-home buyers prefer to have a set price and negotiate with finance, while investors are still in the market,” Mr Carroll said.
“At the moment it’s a peak time. There’s a lot of property on the market, so buyers are spoiled for choice.
“The point of difference to the rest of the country is there is so much business coming down from Melbourne.
“History shows Geelong is not like Melbourne, we don’t have the heady highs of Melbourne and the bonus is we don’t get the crashes — the Melbourne market can be very volatile.”
Melbourne home values have shed 4.5 per cent since the market peaked almost a year ago — and they could fall another 10 per cent before the downturn is done, Mr Kusher said.