Jennifer Pittorino
Prospective homeowners were not prepared to pay the big bucks in the last year, according to new Real Estate Institute of Victoria data.
Annual data from 2022-23 showed the median price of houses in Spotswood declined by 19 per cent to $1.3 million.
Annual median prices also declined in Kingsville by 13 per cent to $1.11 million and South Kingsville by 7.3 per cent to $1.09 million.
Jas Stephens Real Estate head of sales Marina Condic said the figures are not reflective of house prices dropping in both municipalities.
“What’s driving those changes is not prices dropping but more so the types of properties that have been selling,” she said.
“We are seeing many rental providers offloading their investment properties due to interest rate rises and land tax increases.
“A lot of the higher end sellers held listing their properties for a while.
“They wanted to see how the market will pan out and how interest rates will develop.”
In the three months to June, the median price in Newport fell 12.8 per cent to $1.17 million, 4.1 per cent in Altona ( $1.1 million) and Seabrook (-5.1 per cent to $650,000).
However, Footscray (+7 per cent to $920,000), Maidstone (+5.6 per cent to $948,000), Maribyrnong (+6.5 per cent to $1.35 million) and Williamstown (+8.3 per cent to reach $1.43 million) recorded quarterly increases.
Ms Condic said these figures reflect that the seller sentiment is shifting, with a record number of new listings in June.
“The homes we have on the market, particularly in higher price points, are selling well. Low stock levels supported this, compared to previous years. However, our new listings are picking up at record levels,” she said.
