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It was a similar trend along the Surf Coast near Geelong, where dwelling values jumped 50.6 per cent higher between March 2020 and May 2022.
They fell 12.9 per cent by the trough in July this year, before recently edging up 1.3 per cent.
“The fact we did see [dwelling] values rise 51 per cent in both areas, it’s probably fair to say that prices overshot the market and went beyond fair value,” Lawless said.
Kay & Burton Flinders executive director Tom Barr Smith said the Mornington Peninsula market was returning to normality after the COVID-19 boom, where some properties were selling within days of being listed for prices well above expectations.
“The market wasn’t exactly sustainable at those levels,” Barr Smith said. “It’s now back to a much more normal year than we’ve seen for the past three to four years.”
The recent boost to home values is welcome news to sellers like Louise and Steve Sutton, who recently listed their Rosebud home for sale.
The couple, both 60, bought their home on Waterfall Gully Road seven years ago, before the pandemic hit, as they were working close by.
Louise and Steve Sutton hope to sell their home to another family during the summer break.Credit: Chris Hopkins
“This was the first house we viewed, and we just fell in love with it, so we bought it,” Louise Sutton said. “It’s at the base of Arthurs Seat … it’s just lovely and quiet.”
The Suttons are now moving to regional Victoria, to be closer to family, and are hopeful the busier holiday season will entice another family to buy their home, which goes to auction on January 20.
“The Melbourne market in general has been a little bit quieter, but January is when you get all the holidaymakers, so we think they’ll start to look seriously then,” Sutton said.
The Suttons’ selling agent, Stockdale and Leggo Dromana’s Sheree Hay, said while the local market had come off its “gold rush” during COVID, people were still keen to buy and sell.
That included holiday homes, though some vendors were selling up as the Victorian government’s higher land taxes hit the market for those with a second home.
“The new wave of buyers who were more conservative over COVID are now finding they have the capacity to do it,” Hay said.
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Buyers were keen to find a renovated home, as these were more attractive to buyers trying to avoid the costs of fixing or rebuilding.
Along the Surf Coast it was a similar story, as previously priced-out buyers returned to the market.
Though there were some holiday home buyers, most were looking to upgrade to the area, McCartney Real Estate’s Tim Carson said.
“The lower end of the market has softened, but those [prestige] homes where interest rates don’t affect the price are still doing well,” Carson said. “Buyer numbers have dropped, but things are still selling.”
Ray White Highton auctioneer George Politis said buyers once priced out of coastal properties, were also returning to the market to buy.
Dwelling values in the Surf Coast have followed a similar trend to the Mornington Peninsula.Credit: Paul Jones
He said the recent holds on interest rate rises by the Reserve Bank of Australia had injected some confidence back into the market, while vendors were being more realistic about sale prices.
“I strongly believe the market has stabilised,” Politis said. “Like everyone says, COVID prices were a bubble, and the bubble has burst.”
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