O'Brien Real Estate May 2021 Report

May Report.

Our purpose.

To create a place where we can facilitate our people’s growth.

Our values.

Family.

Mutuality.

Realising potential.

Our colleagues are our broader family, assist when needed and when in need.

Respect our colleagues and our clients as you would like to be respected.

Unlock your full potential, encourage and support your colleagues.

Embrace change.

Health and energy.

Strive for excellence; be open minded and willing to embrace change.

Work towards being well balanced within yourself.

October report.

From our corporate director.

Dean O’Brien

Welcome to our May market report.

Welcome to winter and with that we have the May numbers from Corelogic now in so we can dissect the growth the market has seen over the last 31 days. Price Growth in Metropolitan Melbourne for May exceeded that of Regional Victoria for the first time in over 12 months with Metro posting a Combined Dwelling increase of 1.8% whereas Regional posted 1.7%.

Price growth for Metro Melbourne over the last 12 months has now just hit 5% which is still half of most other capital cities, Sydney is sitting at 11.2% Brisbane at 10.6%, Adelaide at 11.8%, Hobart at 16.5 and Darwin at an amazing 20.3% for the last 12 months.

Regionally the annual price growth is at 13.1% with the median house price now tipping over $503,000 for the first time ever. Metro median house prices now sit over $908,000.

On the other side of the coin rental price growth isn’t tracking as good and particularly for units, in Metro Melbourne we have seen prices growth worsen over the month with annual prices now down 7.7% on 12 months ago, houses on the other hand are tracking slightly ahead of inflation at 1.5% annually.

Across the OBrien network we had another very busy month, we sold 364, leased 202 and auctioned 115 properties for the month.

Here are the main talking points and news edits for the week.

• House approvals have scaled new heights with total council approvals to build new houses rising by 3.4 per cent to record highs this will see demand for building materials continue to soar.

• We saw the biggest lift in home building in 6 years.

Construction rose by 2.4 per cent in the March quarter - the most in 3½ years. Home building rose by 5.1 per cent in the quarter with renovations up by 10.8 per cent to record highs.

• We have also seen the biggest lift in business investment in 9 years. Spending on buildings and equipment rose by 6.3 per cent in the March quarter the biggest lift in spending in almost nine years.

• And lastly as widely expected the Reserve Bank held rates at 0.10% at its board meeting yesterday. All eyes will now be on the minutes of the meeting to see if there has been any softening on the RBA's stance that rates would not increase until 2024.

That’s all for this month Dean O’Brien

We sell more.

A snapshot of last months sales.

Average sale price.

Sale price.

High.

$715,200 Address

Low.

$1.90m $250k

Number of suburbs sold in.

34

Sale Price

Suburb

2/5 Wiltshire Avenue

Bayswater

2

1

2

$632,000.00

48 Victoria Road

Bayswater

3

1

2

$895,000.00

2/4 Elm Street

Bayswater

2

1

2

$635,000.00

3/306 Canterbury Road

Bayswater North

3

2

2

$690,000.00

1/101 Old Princes Highway

Beaconsfield

3

2

1

$615,000.00

1/241 Soldiers Road

Beaconsfield

4

3

2

$722,500.00

6 South Ridge Court

Beaconsfield

5

4

3

$1,340,000.00

30 Leonard Avenue

Berwick

3

2

1

$625,000.00

2/58 Palmerston Street

Berwick

3

1

1

$665,000.00

17 Bangalay Place

Berwick

3

2

2

$687,000.00

20 Saintly Grove

Berwick

3

2

2

$707,000.00

52A Hancock Drive

Berwick

3

2

2

$740,000.00

58 Grices Road

Berwick

4

2

2

$777,000.00

1 Normanton Close

Berwick

4

2

2

$815,000.00

13/25 Canberra Avenue

Berwick

3

2

2

$875,000.00

91 Soldiers Road

Berwick

4

2

2

$900,000.00

26 Glenview Rise

Berwick

4

2

2

$1,060,000.00

5/24 Stonehaven Ave

Boronia

3

2

2

$625,000.00

2/11 McDonald Cres

Boronia

2

1

1

$660,000.00

4 Daffodil Rd

Boronia

3

1

2

$750,000.00

42 Hazelwood Street

Boronia

5

2

2

$952,000.00

8 Ethel St

Boronia

3

2

1

$965,000.00

48 Stringyleaf Street

Botanic Ridge

4

2

1

$540,000.00

We sell more.

A snapshot of last months sales.

Average sale price.

Sale price.

High.

$715,200

Low.

$1.90m $250k

Number of suburbs sold in.

34

Sale Price

Address

Suburb

7 Espie Court

Botanic Ridge

3

2

2

$820,000.00

15 Bellis Circuit

Botanic Ridge

4

2

2

$910,000.00

6 Sparks Court

Botanic Ridge

4

2

2

$988,000.00

64 Royal St Georges Chase

Botanic Ridge

4

4

2

$1,187,500.00

218/15-21 Harrow Street

Box Hill

2

2

1

$435,000.00

2023/850 Whitehorse Road

Box Hill

2

1

1

$488,000.00

10/37-39 Rose St

Box Hill

2

2

1

$555,000.00

42 Tucker Boulevard

Carrum Downs

4

2

2

$710,000.00

4 Mena Place

Clyde

21 Hekela St

Clyde North

3

2

1

$570,000.00

33 Timble Way

Clyde North

3

2

2

$590,000.00

23 Reflections Boulevard

Clyde North

4

2

2

$915,000.00

1/4 Mundaring Drive

Cranbourne

2

2

1

$490,000.00

37 Huey Circuit

Cranbourne

4

2

2

$930,000.00

13 Blue Bush Way

Cranbourne East

3

2

2

$567,000.00

10 Hewitt Street

Cranbourne East

4

2

2

$635,000.00

40 Tankard Drive

Cranbourne East

4

2

2

$700,000.00

5/7-9 Elizabeth Street

Cranbourne North

3

1

2

$440,000.00

5 Frances Crescent

Cranbourne North

3

2

0

$600,000.00

27 Burford Way

Cranbourne North

4

2

2

$609,000.00

2 Cumquat Court

Cranbourne North

4

2

0

$620,000.00

50 Linden Tree Way

Cranbourne North

4

2

2

$640,000.00

8 Prescott Drive

Cranbourne North

4

4

2

$712,000.00

19 Sussex Avenue

Cranbourne North

4

2

2

$730,000.00

LAND

$350,000.00

We sell more.

A snapshot of last months sales.

Average sale price.

Sale price.

High.

$715,200 Address

Low.

$1.90m $250k

Number of suburbs sold in.

34

Sale Price

Suburb

4 Faringdon Crescent

Cranbourne North

4

2

2

$810,000.00

9 Lady Penrhyn Close

Cranbourne West

3

1

2

$510,000.00

9 Glenaire Cres

Cranbourne West

3

2

2

$605,000.00

13 Bronhill Crt

Cranbourne West

3

2

2

$605,500.00

16 Jasa Crescent

Cranbourne West

3

2

2

$610,000.00

49 George Frederick Road

Cranbourne West

4

2

2

$655,000.00

411/80 Cheltenham Rd

Dandenong

2

1

1

$360,000.00

15 Truslove Court

Endeavour Hills

5

2

2

$1,070,000.00

17/3-5 Milton St

Ferntree Gully

3

2

2

$565,000.00

42 Lightwood Drive

Ferntree Gully

3

1

1

$687,000.00

17 Richborough Grove

Ferntree Gully

4

3

2

$865,000.00

22/259 Canterbury Road

Forest Hill

1

1

1

$330,000.00

104 Skye Road

Frankston

3

2

2

$560,000.00

15 Lacenet Avenue

Frankston North

3

1

0

$355,000.00

13 Lacenet Avenue

Frankston North

3

1

0

$388,000.00

32 Lauren Drive

Hampton Park

3

1

2

$510,000.00

18 Horizon Boulevard

Hampton Park

3

2

2

$670,000.00

1 Villawood Drive

Hastings

2

1

0

$520,000

16/300 High Street

Hastings

4

2

2

$576,500

3 Hodgins Road

Hastings

3

2

2

$620,000

41 Georgia Way

Hastings

3

2

2

$650,000

16 Beilby Court

Hastings

4

2

2

$675,000

2 Mistletoe Close

Knoxfield

5

3

2

$1,305,000.00

182 Station street

Koo Wee Rup

3

2

2

$640,000.00

We sell more.

A snapshot of last months sales.

Average sale price.

Sale price.

High.

$715,200 Address

Low.

$1.90m $250k

Number of suburbs sold in.

34

Sale Price

Suburb

9 Bailey Boulevard

Koo Wee Rup

4

2

2

$651,000.00

6/520 Mitcham Road

Mitcham

2

2

1

$685,000.00

9/11 Sylvanwood Crescent

Narre Warren

3

2

1

$585,000.00

13 Rosemont Drive

Narre Warren

3

1

2

$585,000.00

8 Highhland Crescent

Narre Warren

4

2

2

$690,000.00

14 Abelia Rise

Narre Warren

4

2

2

$705,000.00

34 Meadow Wood Walk

Narre Warren

4

2

2

$846,000.00

23 Rosemont Drive

Narre Warren

4

2

2

$668,000.00

2 Lighthorse Crescent

Narre Warren South

3

2

2

$630,000.00

4 Toulouse Terrace

Narre Warren South

4

2

2

$900,000.00

6-7 Carrington Court

Narre Warren South

4

3

10

$1,900,000.00

13 Columbia Drive

Officer

3

2

2

$660,000.00

11 Toddington Avenue

Officer

4

2

2

$1,062,000.00

8 Newbury Street

Pakenham

13/137 Ahern Road

Pakenham

3

2

2

$445,000.00

98 Melissa Way

Pakenham

3

2

2

$490,000.00

26 Caversham Drive

Pakenham

3

2

2

$590,000.00

24 Elwood Ave

Pakenham

3

2

2

$655,888.00

1 St Leonard Way

Pakenham

5

3

4

$868,000.00

54 Oakden Street

Pearcedale

4

2

6

$885,500.00

1905 Dandenong Hastings Road

Pearcedale

3

1

6

$1,350,000.00

1502/105 Clarendon Street

Southbank

1

1

0

$350,000.00

51 Democrat Drive

The Basin

3

2

2

$800,000.00

11 Monomeith St

Tooradin

2

1

3

$560,000.00

LAND

$250,000.00

We sell more.

A snapshot of last months sales.

Average sale price.

Sale price.

High.

$715,200 Address

Low.

$1.90m $250k

Number of suburbs sold in.

34

Sale Price

Suburb

5 Lews Place

Tooradin

4

2

6

$900,000.00

8 Skipton Court

Wantirna

4

2

4

$1,320,000.00

16 Chesterfield Avenue

Warragul

3

2

2

$850,000.00

We lease more.

A snapshot of last months leases.

Average weekly rent.

$450 Address

Average monthly rent.

$1960

Rental price p/w.

High.

Low.

$990

$255

Number of suburbs leased in.

p/w

Leased price p/m

Leased price

Suburb

21

17 Kevin Close

Beaconsfield

4

2

0

$440.00

$1,912.00

1/23 Farborough Way

Berwick

3

2

2

$390.00

$1,695.00

1/5 Reserve Street

Berwick

3

1

2

$400.00

$1,738.00

10 Sing Crescent

Berwick

3

2

2

$440.00

$1,912.00

9 Pinewood Crescent

Berwick

3

2

6

$440.00

$1,912.00

9 Jason Close

Berwick

4

2

1

$450.00

$1,955.00

6 Theodore Terrace

Berwick

3

2

2

$460.00

$1,999.00

38 Marlborough Road

Berwick

4

2

2

$480.00

$2,086.00

6 Bergamont Place

Berwick

4

2

2

$480.00

$2,086.00

31 McNaughton Crescent

Berwick

4

2

2

$500.00

$2,173.00

5 Jay Rise

Berwick

5

2

2

$710.00

$3,085.00

22 Saddleback Road

Botanic Ridge

4

2

2

$400.00

$1,738.00

14 Honeybrook Lane

Clyde

3

2

2

$400.00

$1,738.00

1 Nirvana Way

Clyde

3

2

2

$430.00

$1,868.00

26 Freiberger Grove

Clyde

3

2

2

$450.00

$1,955.00

56 Bowler Avenue

Clyde

4

2

2

$450.00

$1,955.00

10 Yarra Street

Clyde

4

2

2

$430.00

$1,868.00

23A Selandra Boulevard

Clyde North

3

2

2

$360.00

$1,564.00

10 Maddock Drive

Crabourne East

3

1

1

$380.00

$1,651.00

165 Camms Raod

Cranbourne

3

2

2

$405.00

$1,760.00

27 Blaxland Avenue

Cranbourne

3

1

2

$420.00

$1,825.00

We lease more.

A snapshot of last months leases.

Average weekly rent.

$450 Address

Average monthly rent.

Rental price p/w.

High.

$1960

Low.

$990

$255

Number of suburbs leased in.

Leased price

Suburb

p/w

21

Leased price p/m

5 Crystal Gardens

Cranbourne East

3

2

2

$350.00

$1,521.00

40 Tankard Drive

Cranbourne East

4

2

2

$480.00

$2,086.00

37 Prosperity Avenue

Cranbourne North

4

2

2

$480.00

$2,086.00

84 Alisma Boulevard

Cranbourne North

4

2

2

$450.00

$1,955.00

20 Roslyn Road

Cranbourne South

4

2

2

$990.00

$4,302.00

60 Miralie Way

Cranbourne West

4

2

2

$500.00

$2,173.00

10 Joyce Street

Cranbourne West

3

1

2

$365.00

$1,586.00

22 Garside Street

Dandenong

3

1

2

$390.00

$1,695.00

2 Bass Place

Endeavour Hills

3

2

3

$430.00

$1,868.00

1 Thomas Court

Hallam

3

2

2

$450.00

$1,955.00

44 Innes Court

Narre Warren

3

2

2

$440.00

$1,912.00

83 Fountain Drive

Narre Warren

3

1

2

$440.00

$1,912.00

1A Tingle Close

Narre Warren

3

2

1

$435.00

$1,890.00

11 Azimuth Close

Narre Warren South

5

3

2

$750.00

$3,259.00

2/13 Joy Parade

Noble Park

2

1

1

$255.00

$978.00

13 Cherrington Avenue

Officer

3

2

2

$415.00

$1,803.00

10/7 Melissa Way

Pakenham

3

1

2

$340.00

$1,477.00

10/1172 Burwood Highway

Upper Ferntree Gully

2

1

1

$350.00

$1,521.00

425 Burwood Highway

Vermont South

3

2

2

$450.00

$1,955.00

June interest rate announcement: RBA holds cash rate at record low of 0.1 per cent The Reserve Bank of Australia agreed, at its monthly meeting on June 1, to maintain the cash rate at its record low of 0.10 per cent.

The move comes as consumer confidence dipped from its 11-year high in May but remains very strong. The largest falls are from Victoria, Western Australia, and Queensland, while NSW continues to be the most confident about the post-pandemic economic recovery.

“The Reserve Bank won’t want change any time soon,” said Chris Lioutas, chief investment officer with PSK Financial. “They’ll be watching the data closely, especially with everyone worried about inflation at the moment and over-reacting to the possibility.”

“We’ll get spikes of inflation in the short term with supply shortages happening, either with labour or goods and services, and the US has a seen a 0.9 per cent rate last month which overshot expectations, and the Bank has flagged they’d like to see a rise here. But we’re still well below inflation targets, so it’s all watch and see.”

All the world’s eyes at the moment are on Iceland, which delivered the first policy tightening in Western Europe to contain inflation and a soaring housing market, with the Bank of Canada also reducing some support and the New Zealand central bank flagging potential rate rises from mid-2022.

However, other major central banks remain committed to continued policy stimulus as they mainly see any near-term inflation as being simply transitory.

“We’ll see a breakout in inflation as a result of the budget initiatives in subsidising childcare and tax breaks when they go into circulation, but they’ll be transitory, and most people will see that,” said former Labor trade minister Craig Emerson, head of Emerson Economics. “We won’t see any change in interest rates until unemployment is down to below 4 per cent, and that won’t happen for three or four years.

“It’s only then that we’ll see wages go up and inflation rise to projected levels. In the meantime, inflation will remain subdued.”

Despite Australia’s soaring housing market, the RBA wants to hold the course steady.

This, combined with state and federal governments committed to maintaining the strength of the current market, assures confidence for sellers and purchasers of both residential investment and commercial investment.”

Mr Emerson says the RBA has consistently said house prices are not its concern. “They’ve made that abundantly clear,” he said. “If they do become a problem, they’d argue for other policy levers, like macro-prudential regulations that aren’t in the domain of the Reserve Bank.”

Since the first waves of COVID-19 petered out, the economy has performed much better than most expected, points out Besa Dada, the chief economist of Westpac Business Bank and secretary of the Australian Business Economists’ Association. And if that bounceback continues so strongly, and there are any shifts in the housing market, she predicts that there’s a risk that rates could be raised before 2024, but not until late in 2023 at the earliest.

“Investor lending has picked up considerably, with a very strong pace of growth,” said Ms Dada. “Now they’ve joined the party, the Reserve Bank will be eyeing any changes in the housing market closely and the acceleration of growth in prices.”

“They told us last month that in July, they’d make the decision around yield curve control, with the program selling or buying government bonds to get the bond yield rate over 1.1 per cent. So, we haven’t been anticipating any fresh information around that yet.

Instead, they’ve been looking at the type of borrowing taking place.”

The latest figures from CoreLogic show that property investor financing was up 17.7 per cent in March compared with January, pushing up the share of financing secured by investors to 25.9 per cent in the month. That’s in stark contrast to the recent low of 23.1 per cent in January.

But most indicators look promising. Local and global equity markets have both risen lately, for instance, ignoring inflation concerns and instead focusing on a confirmation of strong US economic growth and central banks committing to policy support.

In addition, Australian retail trade rose by 1.1 per cent in April – following a 1.3 per cent rise in March – with spending on eating out showing a strong 2.5 per cent rise, which was particularly strong in NSW, said Mr Lioutas.

Ray Ellis, CEO of national agency First National Real Estate, says that’s a good tactic. “Buyers throughout Australia have become accustomed in recent years to a regime of low interest rates on the expectation, particularly by the Reserve Bank, that there will be no substantial alteration to interest rates until 2024,” he said.

The quarter also saw a very strong 5.1 per cent rise in residential construction in all states except Victoria, boosted by work done for detached houses and renovations. Public engineering also saw a solid 3.1 per cent rise.

“This provides one of the strong conditions needed for anyone seeking to enter the property market, particularly first-home buyers.

“Business investment is clearly accelerating, supported by government and central bank policy along with tax incentives,” said Mr Lioutas.

Article Source: domain.com.au

Refinance, upgrade or both? What home owners should do while rates are still low Upgrading to a larger, better-positioned, or more valuable home can allow home owners to take advantage of surging prices, but a booming market can make the move challenging.

An economic recovery that exceeds expectations and increases inflation could potentially bring rate hikes forward.

While it might be easier to achieve a great price when selling, it’s just about impossible to score a bargain in the current market, considering countless upgraders – who have put off a move for several years – are diving in at once.

“The RBA has indicated the official cash rate will remain low for some time,” says Domain Home Loans director and Lendi cofounder David Hyman. “However, the economy is performing better than many expected, which could impact the outlook for rates if sustained.”

“It’s when demand outstrips supply that the prices are high,” says Real Estate Institute of NSW president Leanne Pilkington. “We’ve got a couple of years of suppressed demand happening right now.”

“One thing to remember is that banks can raise the rates they charge out of cycle and on their own accord at any time. Record-low rates won’t last forever, and we are already seeing some lenders raising rates.”

“Eventually, that demand is going to start to ease off, but even if the clearance rates are down in the mid-70s, it’s still a really strong market.”

Take advantage

When prices rise across the board, the gap between the value of a home owner’s current property and a more expensive one grows, potentially pushing the most desirable properties out of reach.

The proportion of upgraders who buy before selling tends to increase when prices rise. Home owners are more confident they’ll achieve a strong result selling their original home, and many prefer selling quickly after buying rather than rushing to find a home after selling.

Home owners who manage to take the leap could realise both the lifestyle benefits that upgrading can bring and the financial rewards of increased exposure to a rising market.

“History shows over a long period of time, getting a bigger, better quality property in a better location does pay off in terms of the house price gains,” says economist and Market Economics director Stephen Koukoulas.

There are ways both new buyers and upgraders can take advantage of the low-rate environment and prepare for the future, Koukoulas says.

“If we do get an interest rate tightening cycle, you do expect rates to go up by a percentage point or two. See what sort of an impact that has on your monthly repayments.”

“If you’ve got your foot in the door or you’re upgrading, enjoy these low interest rates and use this opportunity to try and reduce some of your debt.”

Borrowers still paying outdated interest rates should shop around, as refinancing can pay off even if an upgrade is on the agenda, Hyman says.

“Getting ready to upgrade can take longer than expected, so why wouldn’t you want to be saving more on your repayments during that time?”

Home owners in a secure financial situation who aren’t planning on moving could consider fixing part of their loan, with rates below 2 per cent available.

Interest Rate Outlook Rising prices aren’t the only factor for upgraders to consider before making a move. The latest statements from the Reserve Bank of Australia suggests home owners could expect the ultralow interest rates that have fueled rising prices to increase by 2024.

“Sometime in the next few years, interest rates will be higher than they are today,” Koukoulas says. “With the RBA saying they’re going to keep the three-year government bond yield at 0.1 per cent, that’s probably within the timeframe of when official rates could go up.”

“If you want to fix part of your loan, make sure you’ve negotiated the best variable rate possible first because once you’re fixed, you won’t have the same bargaining power on that variable component,” Hyman says.

Borrowers choosing to fix need to anticipate potential rate increases that could occur during their fixed term, Koukoulas says, or risk a sudden jolt to their finances if rates jump a few percentage points.

“Some of these products are fabulously attractive,” he says. “But plan for when these things end.”

Article Source: domain.com.au

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The quality of our service stems from the importance we place on the people behind out network.

Craigieburn

Sydenham Preston / Reservoir Croydon Blackburn Wantirna Corporate Oakleigh

Brighton

Werribee

Tecoma / Belgrave / Olinda

Endeavour Hills

Mentone

Narre Warren Keysborough

Berwick

Chelsea

Pakenham

Carrum Downs Cranbourne Frankston

Langwarrin

Mornington Somerville

Hastings

Rye

Cowes

Results in this brochure achieved by highlighted offices.

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