As pandemic conditions continue to ease around the globe, the welcome return to normality has ushered in a more measured and mature housing market for 2022.
Post-lockdown, a perfect storm of low interest rates, pent-up demand and limited stock caused prices to surge across Melbourne at a rate not seen in decades. As the frenzy settles, price growth has eased to a steadier rhythm, with buyers increasingly drawn to quality accommodation with a focus on liveability. Priorities have changed, and properties with “pandemic appeal” such as more space, great work-from-home facilities and a location close to retail, schools and recreation continue to perform strongly.
The Inner North has been resilient over the past 12 months, and despite the heat coming out of the market somewhat, demand remains strong. The appetite for renovated homes has increased substantially due to inflation in the construction industry. This has resulted in renovated family homes selling above expectations, with multiple bidders at auction. We see this trend continuing, as labour prices and material costs increase further, and this will help to cushion the local property market.