The property market has attracted a lot of press in recent weeks so I thought you may appreciate hearing our thoughts on how it is performing.
 
Although Melbourne house prices jumped by more than 20 per cent over the 12 months to the end of the September 2010, the majority of the growth occurred from October to June. The gradual easing of prices has created a balance between supply and demand to the point where the market is now experiencing what could be considered normal conditions.
 
This slowing of price increases had been expected after the unsustainable growth of the last 18 months which saw the median price increase from $405,000 in the March quarter 2009 to its latest figure of $565,000.
 
To date more homes have been sold this spring than any other year since 2007, providing an indication of the health of the market. On the weekend of 23 and 24 October, almost 1,100 properties went under the hammer, the highest number on any one day since March 2008.
 
While much of the media's focus is on auction activity and clearance rates, which have consistently remained at the top end of the 60 per cent range throughout spring, private sale numbers have also grown in the last few months and produced pleasing results for vendors.
 
The general consensus is that prices will continue to show moderate growth in the immediate future despite the high level of properties on the market.
 

If you'd like a more comprehensive market update I'd be more than happy to assist, so please don't hesitate to call me on 0412494907here would hardly be a home owner who hasn't contemplated renovating at some stage, either because the family requires more space or to upgrade their standard of accommodation.

But regardless of the reason, it is prudent for owners to carefully think through the pros and cons of renovating in preference to upgrading to a larger or better house in the same suburb or another area.

An expensive alteration or extension can result in the property being over-capitalised which is not such an issue if the owner intends staying put for an indefinite period. But if the plan is to sell within the shorter to medium term, the house may not have increased in value by as much as anticipated, leaving the owner out of pocket.
 
Owners generally consult an architect or builder before making a decision about renovating but it makes good sense to also talk to an agent who knows the area as they will be able to offer an opinion as to the likely impact the proposed work will have on the property's value.
 
How the renovated property will fit with the style of housing in the area and its likely appeal to future buyers are other considerations that require thought.
 
If you're in the process of weighing up your options to sell or renovate, I would be delighted to assist in any way I can. Alternatively, if you'd just like to know what is likely to happen with the market in spring or obtain an idea of your home's current worth you are most welcome to call me on 0412494907.

 

<http://www.hockingstuart.com.au/>
Adrian Foster
Director, Licensed Estate Agent, Auctioneer

Hocking Stuart Mt Eliza and Hocking Stuart Frankston

3/87 Mt Eliza Way
Mt Eliza 3930
E afoster@hockingstuart.com.au
M0412 494 907
P(03) 9787 6878
F(03) 9787 6877