Growth in house prices is gathering pace in Geelong as interest rate cuts and government incentives deepened buyers’ borrowing capacity.
New PropTrack data revealed Geelong’s median home value rose about $3500 in October, contributing to an overall 2.99 per cent lift over the past 12 months.
That reflects a more than $22,000 increase in the median dwelling value in Geelong.
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The region’s median house value rose 2.8 per cent over 12 months to $792,000 in October, while the median unit value climbed a greater 4.75 per cent to $565,000 – an increase in value of close to $27,000 compared to the same time last year.
PropTrack senior economist Eleanor Creagh said Geelong is now following the growing trend seen in Melbourne home prices in recent months.
“We’re seeing Melbourne regain pace as borrowing capacity improves and as well you’re sitting very much on the same trend there,” Ms Creagh said.
“Momentum looks pretty steady. If you look at the three and six months and annualised measures of growth, they’re both firming year on year. Growth is running solidly.”
PropTrack senior economist Eleanor Creagh, said Geelong home prices were gathering momentum. Picture: John Gass
Ms Creagh said buyer sentiment looking firm is going to continue to bolster demand for housing.
But that is only going to further exacerbate the pressure on home prices as the volume of properties on the market has remained steady.
New analysis shows the number of properties on the market in Geelong at the height of spring is at the same level it was heading into winter in June.
While Geelong had it’s biggest auction day in more than year in late October, the PropTrack figures show overall listings numbers have failed to significantly rise to the levels in spring seen prior to or during the pandemic.
Geelong residential property listings have not recovered to the level on the market last spring, according to PropTrack data. Source: Flourish
The PropTrack data shows 3280 properties are on the market in the Geelong region, which is less than the total pool of available properties listed for sale at the beginning of June.
Meanwhile, the number of property sales reported each week has climbed from an average of 92 through winter to more than 105 this spring.
Ms Creagh said it’s unlikely the RBA will announce a Melbourne Cup Day interest rate cut after higher inflation data was announced last week.
“It looks like underlying inflation pressure has broadened and is sitting above the RBA’s expectations, which means further easing is probably off the table.
“Until that core inflation trend is re-established, it’s possible we will see less easing this cycle than the market had previously hoped for.
“But of course we’ve already seen three interest rate cuts this year and that’s bolstering demand and boosting borrowing capacities.”
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