NORTH-WEST house prices have slid 14 per cent in the past year, according to new figures from the state’s peak real estate body.
Real Estate Institute of Victoria’s September quarter figures show a drop in median house prices of between 2 and 14 per cent in all north-west and Brimbank suburbs except Cairnlea, which soared more than 5 per cent.
The largest decline was in Deer Park, where prices fell 14 per cent, from $390,000 in September last year to $335,000 at the same time this year.
It was closely followed by Sunshine North, where prices fell 13.6 per cent. Keilor Downs was next with a drop of 11 per cent.
The situation is also dire in Braybrook, where prices fell 10 per cent, from $462,000 to $415,000. In Sydenham, Taylors Lakes and St Albans, median prices decreased 5.4, 5 and 5.5 per cent respectively.
But in Sunshine West and Taylors Hill, prices dropped less than 0.30 per cent. In Caroline Springs, house prices dropped 2 per cent.
The situation is brighter in Cairnlea where house prices increased 6.8 per cent, from $447,000 to $510,000.
YPA Estate Agents real estate agent Anthony Orellana said falling prices could be attributed to a flooded market.
“In the north-west there is strong competition because there’s too much supply and not enough demand,” he said.
“But it will turn around coming into spring. We are seeing a lot more people keen to buy properties as the interest rates are dropping and demand is increasing.”
Mr Orellana said suburbs like Cairnlea and Taylors Lakes continued to be popular among first-home buyers.
Director of Bells Real Estate in Sunshine, Stella Kyriakou, said she was surprised by the figures for Sunshine North.
“The number of people inquiring about purchasing a house actually increased in the last quarter,” she said.
“We are seeing an increase of home buyers looking in Brimbank because it’s an affordable area for first homebuyers.”
REIV chief executive Enzo Raimondo said buyers and sellers had been acting cautiously across the state, with consumer confidence at a low.
St Albans (median price $336,00) and Deer Park ($335,000) are among the most affordable areas in the state.
