Market shift for Geelong home prices revealed
While new inflation data all but locks in an August interest rate cut, increasing buyers' borrowing power, as the key Westpac Melbourne Institute Consumer Sentiment Survey shows most homebuyers believe prices will be higher in 12 months time.
Geelong home prices slipped marginally in July on the back of a $3000 decline in the median house price in the region, the latest PropTrack Home Price Index reveals.
The value of a typical house in Geelong rested at $760,000 at the end July, less than 1 per cent lower than recorded the same time last year.
The median unit value rose to $546,000.
PropTrack economist Anne Flaherty said the slowing pace in the decline of Geelong home prices shows the correction is close to over.
'If we look at the pace at which those price drops have moved, it has slowed so the market is close to a turning point and we're going to start to see prices rise again,' Ms Flaherty said.
Affordability could be a factor there in rising unit prices, she said.
'A lot of people who are being priced out of purchasing a house are increasingly looking at the unit market, whether that be townhouses or apartments.'
The return of investors is a leading indicator the market is factoring in rising prices in 2026.
Geelong has a lot to offer on that front, Ms Flaherty said.
'Just purely from an economic, population growth standpoint and where the median price of homes are sitting, I think there's a lot of opportunity,' she said.
'We're actually seeing renewed interest in the Melbourne market and regional Victoria from interstate investors, who are looking at what the median price of a home in greater Melbourne is now.
'It's the third-cheapest capital city. Of course the Geelong median price is below where Melbourne is sitting, but Geelong in a unique regional market in the way it acts as an outer area of Melbourne because it's so well connected in to the city.
'And it offers that lifestyle appeal to people, so it really appeals to people from a broad range of demographics.'
Ms Flaherty said Geelong offers more bang for buck for interstate investors who have reaped big equity gains on the back of fast-rising prices.
Queensland, WA and SA prices are up over 80 per cent over five years, Ms Flaherty said, in contrast to a 15 per cent gain in greater Melbourne. Geelong has seen 27 per cent gain over five years.
Ms Flaherty said an August interest rate cut was on the cards following new inflation figures, with at least another cut tipped before the end of the year, as homebuyers also seeing the potential for price growth.
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