Melbourne home values have hit a record high after plunging during the COVID-19 pandemic, as the state’s red-hot market conditions continue.
The value of an average property in the city has grown 6.7 per cent — reversing the 6.1 per cent decline of 2020 during the state’s widespread lockdown, according to CoreLogic’s daily hedonic home value index.
The boost has pushed Melbourne’s median dwelling value to $736,478, topping the previous record – set in April 2020 – by 0.2 per cent.
The new median is 13.8 per cent higher than the city’s recent low, in mid-2019.
Wakelin Property Advocacy director Jarrod McCabe said Melbourne was “making up for lost time”.
He predicted the boom in property values and competition to buy would continue “for the rest of the year … maybe longer”.
“I don’t think it’s going to slow down anytime soon and I think (values) will go beyond getting back to where they were in 2020,” Mr McCabe said.
“It’s not just one or two people missing out on properties, it’s five or six that are missing out at auction and once you miss three or four auctions the old FOMO (fear of missing out) kicks in and people compromise by going to a lesser property or finding more money.”
Mr McCabe added that values in regional areas, which were less affected by last year’s lockdowns, would also likely continue to rise at a steady rate.
CoreLogic’s executive research director Tim Lawless said he wasn’t surprised Melbourne had broken its previous benchmark.
He said the surge reflected “what we saw in Sydney earlier this month”.
Last month, Australian home values rose at their fastest monthly rate since 2003.
Nationally, houses and units stacked on 2.1 per cent in value in February — as did those in Melbourne.
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