PropTrack Home Price Index reveals latest change in Geelong

Evidence is mounting that Geelong’s housing market will soon return to positive territory. But for now, PropTrack reveals rising prices remain just out of reach.

Auctioneer Ben Riddle calls an auction in Manifold Heights in June. Rising auction clearance rates are a sign of increasing confidence among buyers.

An increase in Geelong home prices remains persistently just out of reach but there’s mounting evidence a rise is around the corner, new data from PropTrack’s Home Price Index reveals.

The report shows home prices declined 1.15 per cent over the three months to the end of June, just below the figure reported the previous month.

The median dwelling price dropped $11,000 since May to $756,000.

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PropTrack economist Angus Moore said the Reserve Bank’s decision to push official interest rates to 4.1 per cent had kept downward pressure on prices.

“Over the past quarter, prices are down just under 1.2 per cent and compared to a year ago down a bit over 5 per cent,” Mr Moore said.

“That’s a little bit larger than what we’re seeing in regional Victoria more broadly, where prices are down about 2.6 per cent in the past year.

PropTrack economist Angus Moore said Geelong’s recovery is lagging behind regional Victoria and Melbourne.

“Part of that story is higher interest rates. Certainly that’s a headwind for buyers everywhere.

“But Geelong hasn’t seen as much of a recovery this year as perhaps some other parts of the country, including Melbourne.”

The huge rise in prices particularly through the pandemic could be a factor, he said.

Another PropTrack report revealed Geelong house prices had doubled in the past 10 years, faster than the national average of 14 years and Melbourne’s 13 years.

“Geelong is more expensive than many other parts of regional Victoria with a median of about $750,000 versus more like $550,000 in many other parts of regional Victoria,” Mr Moore said.

Governor Philip Lowe is due to announce the Reserve Bank Board’s next move on official interest rates on Tuesday. Picture: NCA NewsWire / Christian Gilles

“And in an environment of higher mortgage repayments, that’s going to encourage buyers to be looking in more affordable areas to the extent that they can.”

Rising buyer demand, measured through various data, and a peak in sight for interest rates could see prices turn around soon, he said.

“It’s obviously always hard to pick turning points, but it’s certainly pointing in that direction. The pace of price declines has certainly slowed.”

More buyers seemed confident they could see the peak in interest rates.

“I think we’re seeing evidence consistent with that. In fact, the auction clearance rates have been quite firm through autumn and into winter, which suggests strong demand.

“Similarly, we are seeing pretty strong demand on realestate.com.au. It’s not what it was in spring 2021, but it remains reasonably solid.

“That would be consistent with buyers just being a bit more confident about the budget.

Originally published as PropTrack Home Price Index reveals latest change in Geelong