A Victorian real estate group has reported new figures that show the region’s property market is making a strong recovery.
Barry Plant Group has recorded an average price increase of four per cent in the June 2013 quarter, as well as a 23.1 per cent increase in the number of sales and a 29.2 per cent increase in the value of sales.
The result is an increase from the first six months’ averages of 2013, where the average property price was two per cent higher than last year. The number of sales has gone up 18.8 per cent and the value of sales has risen by 21.1 per cent.
The group recorded sales in excess of 9,000 for the financial year, which has not been achieved since 2010.
Looking at June alone, the average property price at Barry Plant has risen from an average of $443,000 last year to $471,000 this year.
Barry Plant director and CEO Mike McCarthy said the June quarter showed both buyers and sellers were significantly more active than they were at this time last year.
"It's important to note that volumes are still below the boom of 2010 and our average sale price is also still just five per cent down on the average achieved that year," he said.
"All indicators are that whilst the recovery is strong and we should be pleased with the trends, we are still not in the boom times that we saw in 2010."
Senior economist for Australian Property Monitors Dr Andrew Wilson said the Melbourne market had shown significant signs of improvement this year.
“All the forward indicators are positive - increased housing loan data and, of course, we have had a strengthening of auction clearance rates, which are around about 70 per cent,” he told Real Estate Business.
“When the Melbourne market is at its top end, clearance rates get up around the 80 per cent mark and that’s what we saw in 2009 and 2010, but we are certainly getting the best clearance rates since then and it’s been the strongest June we’ve had for quite some time."
In light of the positive results, Mr McCarthy said agents still needed to work hard on behalf of their vendors to achieve good results.
"It is about doing the small things well - marketing the property and negotiation. You get those two elements right and you will achieve the result your clients are looking for,” he said.