So, how’s the market? A question that as agents, we are asked on a daily basis.

After talking to many buyers over the summer period, it is interesting to canvass the varying opinions of the state of the local real estate market. Many have the view that the market has dropped in recent months. This is in part driven by the constant media talk of whether house prices are rising or falling. Both are newsworthy items, especially so if the rises or falls are steep, but usually the best measure is to look at things over a longer period.

Local market conditions saw prices spike in mid 2022 and yes there has been the inevitable correction, but rather than say that prices have fallen, it is probably more accurate to say that prices have returned to the more stable levels of a steady increase pre pandemic time as shown in the below graph from realestate.com.au.

The trends are similar in the surrounding areas of Anglesea and Lorne. 

Whilst the number of transactions has slowed down since mid to late 2023, we feel that this is in part due to seller’s reluctance to meet the market. If there is no pressure or strong desire to sell, then vendors will often list with a bullish price knowing that they have the luxury of time. We have seen recently that price adjustments, are the number one way to generate interest and sales.

It is commonplace for sellers to have a more bullish view on the value of their home and for buyers to have a more pessimistic view. The reality usually lies somewhere in between.

In the past two decades prices have risen massively on the Great Ocean Road. In 2000, the famous Mad Max house set a new record in the area when it sold for $1.1m. Twenty one years later it sold again for $10m (with a renovation and during the peak). Almost ten times the amount it last sold for! Whilst $1.1m was a record price then, it is now almost an entry level price for a house here and indeed the most affordable house on the market is priced at $1.1-$1.2m.

It will be interesting to see if prices continue on the same trajectory. If so, then the Mad Max house may be worth almost $90m in 2047. Now that’s a scary thought.