Melbourne’s Outer East Properties Sell Rapidly Amid Rising Interest Rates
Despite initial fears of a softening market and the looming threat of interest-rate rises, Nathan and Courtney Cuss managed to sell their Ferntree Gully unit in Melbourne within an impressive 10 days of listing it in early January. The quick sale of the Cusses’ property is not an isolated incident, but rather, a testament to the brisk pace of the real estate market in the outer east of Melbourne. Data from CoreLogic reveals that properties in this region, including suburbs like Wandin North and Tecoma, are selling with remarkable speed, often within a fortnight of being listed.
Fast-Selling Suburbs Vs. Slow-Selling Suburbs
CoreLogic’s data indicates that properties in these areas sold within a median of 13 to 18 days last year. This is in stark contrast to the relatively slower pace of the real estate market in the north-west and western suburbs of Melbourne, where homes took between 70 and 82 days to sell. Across Melbourne, the median selling time was 30 days in the December 2023 quarter.
Impact of Interest Rates and Property Values
Eliza Owen from CoreLogic attributes the variance in selling times to the value of the properties and the impact of higher interest rates. Lower-value properties tend to stay on the market longer, likely due to higher interest rates dissuading buyers with lower incomes. Conversely, suburbs with high demand and few listings see properties selling quicker and at higher prices.
Dwelling Values on the Rise
The outer east has witnessed a rise in dwelling values, with Wandin North and Tecoma experiencing value increases of 1.8% and 4.5% respectively. Elliot Bell, a seasoned real estate agent, notes that properties offering space and comfort yet still within commutable distance to the city are selling faster. These properties, especially those that are renovated and reasonably priced, are in high demand.
Changing Preferences and Market Dynamics
In contrast, areas like the Macedon Ranges are witnessing longer selling times as people reconsider the remote lifestyle choices made during the COVID pandemic, especially for homes requiring renovation or maintenance. The Cusses, having successfully sold their Ferntree Gully unit, have already moved on to their new home in Narre Warren, a suburb that offers a balance between proximity to nature and the city.