Our Backyard – Aireys Inlet

Welcome to Aireys Inlet

House prices in Melbourne have again hit a record high, but the strength of that price growth may have peaked this year.

Buyers hoping for a city-wide price drop have been warned not to hold their breath, with a reminder that historically, any price correction in Melbourne had occurred in the wake of rising interest rates and a weakening economy.

After three and a half years of continued price growth, the median Melbourne house price sits at $726,962 – a rise of 1.2 per cent over the March quarter.

Annual price growth of 11.8 per cent is almost 5 percentage points higher than Sydney’s and comes after two consecutive quarters of decelerated growth.

Domain Group chief economist Andrew Wilson said the Melbourne market was gradually deflating – as opposed to correcting – which had previously occurred with higher interest rates or when unemployment rose and incomes fell.

The city was now in a period of more sustainable prices growth, he said, and the March quarter increase may be the peak for this year.

Closer to home there has been a funny thing happening which I have found to be an interesting experiment. On the last couple of days of the school holidays, there was a push bike left leaning up against the fence in front of Truffles Café. I was a little surprised to see it there the next day. I assumed that whoever left it there would be back soon to collect it. Well, here we are almost two weeks later and it is still there! What a trusting people we are down here. Where else could you leave a bicycle in a public place for two weeks and not see it disappear?

We hope to see you down over the weekend and don’t forget to check out one of the Anzac day services in the area including at Anglesea and the biggest in the area at Torquay. There is also a very informal pre-dawn gathering at Moggs Creek on the beach for the early birds. Lest we forget.

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James Worssam

james@greatoceanroadrealestate.com.au

0418 585 815

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