December 9th, 2022REIV property update

THE property market has finally normalised after a roller coaster ride with not only Covid but also unpredicted interest rate hikes, Real Estate Institute of Victoria president Andrew Meehan, pictured, says.
Mr Meehan said there were areas which were still rising and others which were falling but that was considered “a normal market”.
“I think a few people got used to the fact that prices will always continue to rise so when they started to fall people thought that was unusual but where we are at the moment is a normal market – which is great. It offers opportunities for the buyers and opportunities for the sellers and that is the way the market should operate.”
Mr Meehan said there had been a bit of a knee jerk reaction with people during Covid quitting their city lives and heading to the country.
“In my agency on the Mornington Peninsula we experienced exactly the same, because although we are deemed to be metropolitan, we operate as more of a regional market, and people were moving down for the lifestyle choices. I think those people who bought regionally and who can still work from home, perhaps just travelling in to work one day or two, then they will stay there. Others who are forced back to work full time from the office will potentially be affected by those moves to the regions.
“I think Covid made everyone reassess what they valued in life and if you can live on a lifestyle property and are not required to go back to work every day and you don’t have to commute then I think people are still going to value those lifestyle properties and continue to live in them.”
Mr Meehan said he was elected as president in October, as the interest rates started to rise, but said it had been a good couple of months. He also said buyers were now factoring in those rate rises – a surprise after the Reserve Bank had pretty much promised no rises until 2024.
He is also keen to get into the regions to meet REIV members. “I enjoy talking to members and the plan in the new year is to get out to Ballarat and hold a few ‘get to know you’ events, something very casual but talk to our membership and see what we can do better for the benefit of our members.”