Nillumbik property: home price losses almost entirely theoretical
Fewer than 10 Nillumbik homesellers lost money in the first three months of this year, despite a sluggish Melbourne property market.
While the region’s median house and unit prices lost about $30,000 from the same time a year ago, CoreLogic figures show about half those who sold before the end of March this year pocketed a more than $450,000 windfall compared to what they paid for the home.
The figures are revealed in CoreLogic’s latest Pain & Gain report, which shows Nillumbik is home to Melbourne’s sixth highest median profit — and one of only seven local government areas to top $400,000.
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Of the 2.7 per cent of sellers who actually made a loss, half were less than $30,000 out of pocket. And most of them had owned their home for less than two and a half years.
Ray White Diamond Creek senior sales executive Alan King said the CoreLogic report showed that despite a lot of doom and gloom speak at the start of 2019, most of the losses were just on paper.
“Owners feel like they have lost, but the growth from the years before now was substantial, so what they are seeing is really a set back,” Mr King said.
Further CoreLogic figures show the municipality’s median house price fell $27,000 (3.1 per cent) to $851,000 in the year to March 30, and the median unit price dropped $30,000 (4.6 per cent) to $625,000.
But both were up six figures on 2016, when the median house price was $670,000 and $533,900 would buy a middle-of-the-road unit.
Many families in the area could potentially be better off if they took advantage of the current market to upsize, Mr King added.
“The market has definitely stabilised, the doom and gloom speak has gone after the election, and there’s a lot more confidence from buyers,” Mr King said.
Suburbs like Diamond Creek, where the median house price fell a more modest $14,000 (1.8 per cent) in the past year, were seeing significant interest from upsizers and first-home buyers today, he said.
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Any shift to more liberal lending from the banks would likely have a further positive impact on the region’s property market, Mr King said.