La Nina piled on the pandemic to create a darkly fitting end to 2020 and we’ve returned from our summer break paler than in most years and knowing full well that with everyone back at work the weather is bound to brighten up. There’ll be blue skies from hereon in. The real estate market came through the pandemic year in richer health than even we at Abercromby’s predicted. Warehoused demand was released in Victoria as we got on top of the second wave of Covid-19 and this, combined with historically low interest rates, continuing government stimulus, and positive growth expectations, has meant the market is above pre-pandemic levels and new house and unit price records are being set. Melbourne’s median house price rose by 5.3% in the last three months of 2020. That’s over 20% p.a. on money you can borrow almost free. The “experts” who predicted a massive crash in prices when this whole viral fiasco kicked off would be better employed making learned prognostications on which horse will win this year’s Melbourne Cup. But failure to get it right has never yet given an economist pause for thought.
An additional reason for the large rise in property prices is a shortage of listings – scarcity. This means it’s a fine time to list your house. With government stimulus set to continue, record low lending rates, and the beginning of the vaccine rollout, prices are expected to remain on their happy trajectory. At Abercromby’s we currently have an array of stunning properties for sale, and with over 70% of our sales being conducted privately and discreetly it would be wise to contact one of our experienced sales agents to view them.
Is the market brave enough to breathe out and accept that all things pass and we are free of the virus’ grip and to welcome the warm embrace of normality? You bet it is. Apart from international travel and migration, the rebirth of which we can see just over the horizon, only a super pessimist would claim that Covid didn’t belong to 2020. The vaccine is here. Shortly the headline writers will turn to something else.
Houses are at their highest ever value and through January (Typically a lazy month for the real estate market.) increased by 0.6 percent in Melbourne. Listing levels are low and demand is high, so price can only go one way until the levels of stock increase during the course of the year. Regional areas within commuting distance of Melbourne are experiencing record highs as people reevaluate their lifestyle. And coastal towns are undergoing a price surge as people realize that with remote work practices a sea change is an option.
The real news for 2021 is that the blue ribbon real estate market has weathered a global cataclysm as if it had been vaccinated from the get go, making it look a very safe and robust investment indeed.
Despite low listings in the market in general, Abercromby’s has “one of everything and two of most” as far as jaw-dropping properties go. Just call one of our deft sales team to assist in buying discreetly and at value.