Geelong house prices continued downward trend in July, CoreLogic Home Values Index reveals
GEELONG home values fell close to 5 per cent in the past year, new figures from property data analysts CoreLogic reveal.
The July CoreLogic Home Value Index show a 4.5 per cent dip in Geelong dwelling prices over 12 months to $530,566.
CoreLogic recorded a 1.7 per cent dip in the past three months.
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The results placed Geelong with the 10th biggest non-capital city sub-region annual decline in value, though it’s holding up stronger than cities surrounding metropolitan Sydney.
Values in Newcastle and Wollongong declined between 8 and 11 per cent.
CoreLogic head of research Tim Lawless with prices stabilising in Melbourne and Sydney, we might see a similar but lagged trend in these satellite markets as well.
Geelong’s price growth was the fastest in the country this time last year.
McGrath, Geelong agent David Cortous said a 5 per cent fall after an 18-month price boom where annual growth tipped between 18 and 20 per cent in 2018 was predictable.
“We had those 18 to 20 per cent rises over 2017 and 2018. That type of growth is not sustainable,” Mr Cortous said.
“In my opinion, if the market has come off 4 or 5 per cent, it’s not ringing alarm bells.
“You’ll see that picked up very quickly with the banking sector now listening to buyers, there are first-home buyers back in the market, investors are back in the market.”
But Mr Cortous said it meant there was some good value for buyers in the market now.
“I think you’ll see a 4 to 5 per cent growth rate moving forward over the next 12 to 24 months, not the 20 per cent we’ve seen in the past.”
Mr Cortous said a drop in the amount of stock on the market had helped hold values, as buyers competed for fewer homes.
Stockdale & Leggo, Belmont agent Laura Berry said despite a lull in the market caused in part by the royal commission into the finance sector and the federal election, the market fundamentals were still strong.
“I see great numbers at the opens, we’re still seeing people looking to relocate into the Geelong area from Melbourne and I see there is underlying confidence in the market at the coalface.
“On a more basic level, buyers are actively looking and time on market might be little bit longer but there certainly are some great results being achieved.”
Ms Berry said people were buying and selling in the same market.
“People that sell at that price are looking to buy and getting their value on the flip side of the coin,” she said.