THE STATE OF THE WOODEND REAL ESTATE MARKET?
15 July, 2004
Woodend has been and always will be an attractive place to live. The amenity of the town, the new Calder Freeway, the likelihood of the fast train service and natural gas will only consolidate that premise. Current prices we believe represent possibly the best value the area has ever offered relative to prices in Melbourne.
However, there is little doubt based on an analysis of sales evidence from both metropolitan and country Victoria over the past 6 - 8 months, that the residential property price surge that commenced in Melbourne’s inner eastern and bayside suburbs in 1996 and spread to inner country areas and provincial cities in 1999 has now stalled.
Whilst a brief comment cannot accurately cover all real estate market segments, for some properties and some areas price realisations are now 5% - 10% below what vendors may have expected in mid 2003.
This is no surprise. Experienced property observers have been warning for nearly two years that the market has been overheated, and that the price surge would abate.
Metropolitan area auction clearance rates have fallen from 70% to about 50% and the scene for many properties and areas has changed from a seller's market to a buyer's market.
Our forecast for the Woodend area is that we are less likely to be affected by real price falls than the metropolitan area because the boom here has been more moderate and for a shorter time. Some suburbs have seen price increases of 100% to 150% over the past 5-6 years. Woodend has generally seen price increases of 80% to 110%.
Overall the Woodend property market is still very buoyant, and whilst a few comments cannot adequately cover all segments of the market, vendors wanting to sell need to be realistic in their expectations. Overpriced properties could take a long time to sell. Properties priced appropriately to the current market are continuing to sell well.
If Australia's solid economic growth continues we expect 2004 for Woodend property will continue to be a good "normal" trading real estate market, with a reasonable balance between
supply and demand.
Please call us if you have any specific questions regarding the market or your property.
