New figures reveal dramatic change in Geelong’s housing market – realestate.com.au

House price growth is accelerating in Geelong as interest rate cuts and government stimulus have deepened buyers’ borrowing capacity.

New PropTrack data showed Geelong’s average home value rose by about $3500 in October, contributing to an overall increase of 2.99 per cent over the past 12 months.

That reflects an increase of more than $22,000 in the average home value in Geelong.

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The average home value in the region rose 2.8 percent in 12 months to $792,000, while the average unit value rose another 4.75 percent to $565,000 – an increase in value of almost $27,000 compared to the same period last year.

PropTrack senior economist Eleanor Creagh said Geelong was now following the growing trend that Melbourne house prices have seen in recent months.

“We’re seeing Melbourne rebound as borrowing capacity improves, and you’re very much on the same trend there as well,” Ms Creagh said.

“The momentum looks pretty stable. If you look at the three-month, six-month and year-over-year growth rates, they’re both getting stronger year over year. Growth is solid.”

Ms Creagh said buyer confidence looks solid and will continue to drive demand for homes.

But that will only further exacerbate pressure on house prices, as the volume of homes on the market has remained stable.

New analysis shows the number of properties on the market in Geelong is at the same level at the height of spring as it was heading into winter in June.

Although Geelong had its biggest auction day in more than a year at the end of October, PropTrack figures show total listings have failed to rise significantly to levels seen in the spring before or during the pandemic.

Geelong housing has not yet recovered to market levels seen last spring, according to PropTrack data. Source: Flourish

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The PropTrack data shows there are 3280 properties on the market in the Geelong region, which is less than the total pool of available properties for sale at the start of June.

Meanwhile, the number of weekly reported real estate sales has increased from an average of 92 in the winter to more than 105 this spring.

Ms Creagh said the RBA was unlikely to announce a rate cut on Melbourne Cup Day after higher inflation figures were announced last week.

“It appears that underlying inflation pressures have increased and are above the RBA’s expectations, meaning further easing is likely off the table.

“Until the core inflation trend has recovered, we may see less easing of this cycle than the market previously hoped for.

“But of course we have already seen three interest rate cuts this year and that stimulates demand and increases borrowing capacity.”