Image source: Eric Winke
While Melbourne has seen dwelling values fall by 10.3 per cent since peaking in November 2017, there are still pockets of feverish activity being seen across the city on any given Saturday. This is because buyers are quickly identifying opportunities to enter the market at a great price and still live within easy access to Melbourne’s CBD.
Last week was no exception when a home in the seaside suburb of Carrum Downs had bidders and spectators spilling over the front lawn to snap it up.
Francis Morello led the auction on a cool autumn morning at 11 Quail Court — a family-friendly three-bedroom brick veneer home nestled in a quiet cul de sac just a stone’s throw away from Botany Park Reserve, a five-minute drive from the beach, and right at Mornington Peninsula’s doorstep.
“There is no doubt that a number of factors made this property so attractive for bidders,” says Mr Morello. “It was reminiscent of auctions more commonly seen during peak market conditions. Bidders noted being attracted to the size of the land, the suitability of the home for a small family, the opportunity for future renovations and increased capital gains, and of course the location. I continue to see homes that straddle this opportune position, that is between having easy access to the city as well as all that the peninsula has to offer, getting significant interest each weekend.”
Mr Morello led the auction to eventually accept bids right down to $100 as the home exceeded its reserve. With neither of the final two bidders wanting to let go of such a deal, it finally went under the hammer for $433, 750.
“As an auctioneer, it was so great to see interested buyers working so hard to get their hands on such a find, rather than me trying to develop a rhythm in the bidding. My job was made easier and much more rewarding as I could go back to the vendor with a price they were happy with,” says Mr Morello.
Median sale prices in middle ring Carrum Downs and surrounding areas have not seen the same level of falls as those closer in to the city, with data from realestateview.com.au revealing the median sale price of houses in Carrum Downs actually up 1.8 per cent since April 2018, following a slight fall in December 2018, to currently sit at $570,000.
To the south of Carrum Downs, median sale prices for houses in Langwarrin have actually increased by nearly 4.4 per cent over the past year, meaning similar properties to the above, like this three-bedroom home at 4 Sandra Court, are seeing high numbers at their inspections and are expecting similar attention from buyers wanting to enter the market at an opportune time.
There is similarly good news for surrounding areas like Frankston North, which has seen only a -1 per cent fall in median house prices over the past 12 months, and Carrum, which sits at the same position it did this time last year, with a median sale price of $830,000.
There is equally good news for vendors on the other side of the bay. Median sale prices for houses in Werribee have increased by nearly 5 per cent over the past 12 months, while Hoppers Crossing has seen a 1.5 per cent increase over the same period to see houses sit at a median of $548,000.
“In a shift in the market it is common for price falls to be most acute within inner city areas simply because these typically see the sharpest rise in values,” says Mr Morello.
“This is great news for both buyers and vendors further out of Melbourne. Buyers can be assured great opportunities as we saw last week in Carrum Downs, vendors can enjoy the buffer that comes with having a home in a less leveraged area, and homeowners can be more confident in the stability of the long-term growth of their home values.”