Home prices are rising in Geelong and are expected to overtake the mark recorded 12 months ago.
Geelong’s property market is just a chip-shot away from making up the ground lost in home prices over the past 12 months, new data shows.
The latest PropTrack Home Price Index results reveals the median home price in Geelong ended May just .67 per cent shy of the value recorded at the same time last year.
It marks a quick turnaround as the Reserve Bank locked in the second interest-rate cut in 2025 a fortnight after the government banked a stunning federal election win.
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Geelong’s median house price reached $893,000 in May, according to the PropTrack figures, just shy of the figure recorded in 2024.
The value of a typical unit is up on all measures, reaching $612,000 by the end of May.
PropTrack senior economist Eleanor Creagh said Geelong was not far off returning to positive territory on annual terms.
“It’s a bit of a chip shot, and it’s likely that prices are going to continue lifting throughout the remainder of 2025,” Ms Creagh said.
“We’re seeing that price momentum has increased and broadened with interest rates falling.
“And we know that lower interest rates have lifted borrowing capacities and boosted buyer demand, and of course, with further price increases and rate cuts expected, prospective buyers are moving off the sidelines and accelerating their purchasing decisions.
PropTrack senior economist Eleanor Creagh.
“And as a result, we’re seeing that growth momentum has increased, underpinned by improving buyer sentiment and confidence.”
Ms Creagh said it appears that interest rates moving lower has buoyed buyer confidence.
“I think people are anticipating that interest rates are going to continue to move lower already and that prices are going to continue to rise.”
The fast turnaround comes regional prices outpaced the combined capitals.
Regional home prices are now 65 per cent higher than their levels five years ago.
The turnaround in buyer sentiment after an interest-rate cut comes amid continued strong population growth on the back of nation-leading internal migration figures.
David Cortous said more buyers are coming back to the market.
More than 10 per cent of people moving to regional Australia have settled in Geelong, the Regional Australia Institute data from the Regional Movers Index revealed.
McGrath, Geelong agent David Cortous said the changing sentiment was already visible on the streets, with more people attending inspections, watching auctions and in some cases competing for properties.
“The Geelong market has been flat on price to two years now,” Mr Cortous said.
“We’re starting to see that multiple buyers are back on properties now and we’re selling through stock that’s been sitting there. That’s an indicator that the needle is moving.”
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