Geelong’s property market experienced a rebound in February, thanks to the first interest rate cut in four years. According to PropTrack’s Home Price Index, this turnaround resulted in Geelong’s median dwelling price reaching $733,000. However, PropTrack senior economist Eleanor Creagh cautioned against expecting a return to pre-downturn price growth due to affordability pressures and the anticipation of only a few rate cuts in the current easing cycle.
The improvement in market sentiment, driven by lower interest rates, played a significant role in boosting property values in Geelong. Ms. Creagh stated that the rate cut in February improved sentiment, increased borrowing capacities, and enhanced buyer confidence, which is expected to drive new demand and stimulate growth in the region. While Melbourne and Sydney experienced particularly strong growth in February, regional markets saw slightly smaller increases.
Geelong’s median dwelling price of $733,000 remains 1.33% lower than three months ago and 4% lower compared to the previous year. PropTrack recorded the median house price in Geelong at $764,000, while the median unit price reached $529,000.
Ms. Creagh highlighted that the prospect of rate cuts had already boosted the market, as evidenced by improved auction clearance rates and increased consumer house price expectations according to the Westpac Consumer Sentiment Index. She further stated that the rate cut in February had improved affordability, buyer confidence, and renewed demand, reversing the previous months’ price falls.
Higher population growth and a shortage of new homes also contributed to the rise in home prices in Geelong. However, it is not expected that interest rate cuts alone will restore house price growth to pre-downturn levels.
Looking ahead, Ms. Creagh expects prices to continue rising and interest rates to fall further. However, she believes that poor affordability will likely dampen the pace of price growth compared to previous easing cycles, resulting in a slower performance than in recent years.
Real estate agents in Geelong have noticed an increase in the number of people looking at homes for sale and a growing number of listings. Buxton Highton agent Matt Hunt mentioned that there is now more confidence in the market since interest rates have decreased. Buyers, especially first and second-home buyers, are actively purchasing properties with the knowledge that interest rates are unlikely to rise.
2 Comments
Wow, this is great news for homeowners in Geelong! With interest rates dropping, it’s the perfect time to consider selling and upgrading to a bigger house. I’m excited to see how this will impact the local real estate market in the coming months.
As a potential buyer, I’m curious to know if the demand for properties in Geelong has increased significantly because of the lower interest rates. Are there any areas in particular that are experiencing a surge in buyer interest?
It’s incredible to see how the Geelong real estate market is thriving despite the challenges of the current economic climate. This report truly highlights the resilience of the industry and the appeal of the area to potential investors. Kudos to all the real estate professionals working hard to make it happen.
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While it’s fantastic to see the Geelong real estate market prosper, I hope this doesn’t lead to a surge in housing prices that may make it more difficult for first-time buyers to enter the market. It would be great if the local government could implement measures to ensure affordability remains a priority.
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As a long-time resident, I’ve witnessed firsthand how Geelong has transformed into a highly desirable place to live. The booming real estate market is a testament to the city’s growth and potential. I’m excited to see what the future holds for this fantastic community.
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I’ve been considering investing in Geelong for some time now, and this report has given me the confidence to finally take the plunge. The low interest rates are a huge incentive, but it’s also the city’s charm and promising trends that make it an attractive choice.
It’s encouraging to see the Geelong real estate market thrive, especially during these uncertain times. The demand for properties speaks volumes about the strong community spirit and desirability of the area. I’m proud to call Geelong my home.
This report is a valuable resource for anyone interested in the Geelong real estate market. The data-backed insights provide a clear picture of the current trends and where the market is headed. I’m definitely bookmarking this for future reference.
I had no idea that the Geelong real estate market was experiencing such a boom! It’s fascinating to see how interest rates can have such a big impact on the market. I wonder if this trend will continue in the future.