McGrath Geelong agent David Cortous said vendors were meeting the market to transact as buyers showed price sensitivity across all price brackets.
Flat home prices for the first three months of 2025 is a perverse sign that the Geelong property market has turned a corner.
PropTrack’s Home Price Index report shows Geelong’s median home price was virtually unchanged over the past three months, even after the Reserve Bank cut interest rates by .25 per cent in February.
But PropTrack senior economist Eleanor Creagh said the lack of price movement over February and March is a sign that Geelong’s property market has turned a corner after an extended period of price decline.
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“The flat growth in Geelong probably points to the fact that demand-supply conditions are pretty balanced,” Ms Creagh said.
“More competitive market conditions, where demand is greatly outweighs the supply of properties listed for sale, might see a faster pace of home price growth.”
McGrath Geelong agent David Cortous said while the number of sales has been improving this year, buyers were clearly sensitive to to not paying above what they could afford, whether in high, middle or low price brackets.
“All vendors are trying to meet the market to transact,” Mr Cortous said.
“Whether buyers are seeing the market now at the bottom (of the cycle), people are coming out because they’re thinking the value there now is probably going in one direction and that’s up.”
Supply and demand conditions appeared more balanced in Geelong, prompting the flat growth over the first three months of 2025.
The Home Price Index shows Geelong’s median price for houses and units combined reached $728,000, a slight bump for March but unchanged over three months.
The median house price dipped slightly over three months to $762,000, while the median unit price rose to hit $512,000.
With an election campaign interest rate cut not on the cards, Ms Creagh said the property market would look to the May meeting of the Reserve Bank board to see whether more housing affordability relief for homebuyers and borrowers was on the way.
“We’ve already seen there’s a shift in conditions,” Ms Creagh said.
“For much of 2024, Geelong was pretty subdued in terms of prices were falling, so we’ve already seen a turnaround with February’s rate cut being a key catalyst there in terms of prices just being flat over the past quarter.
Prop Track senior economist Eleanor Creagh said further interest rates cuts would provide a catalyst for Geelong home prices to catch up on previous declines in 2025.
“It’s likely as interest rates continue to fall further, that will work to reignite buyer demand even more.”
The median home price remains 2.44 per cent below the same time last year.
“Geelong doesn’t have that kind of positive price momentum that some markets around the country have at the moment,” Ms Creagh said.
“That’s likely to be reflective of less competitive market conditions.”
Ms Creagh said the market would likely play catch up this year following the extended period with subdued conditions, if interest rates continue to fall.
“As interest rates continue to move lower, we’ll see borrowing capacities continuing to improve and likely buyer sentiment is also lifting further and particularly with Geelong.”
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