Family friendly Balwyn is leading the way out of cooler market conditions in Melbourne’s affluent eastern suburbs with a price recovery.
It was the only suburb among 12 in blue-chip Boroondara to record median house price growth in the quarter to May, latest CoreLogic data shows.
Its median price rose a modest 0.9 per cent to $2.205 million, while some suburbs had falls of as much as 9 per cent and above.
Over 12 months, Balwyn had the smallest decline in median house sale price in the municipality, at 3.5 per cent, while Hawthorn fell 28.5 per cent and Kew 13.6 per cent.
While the market has seen demand soften and prices retreat over 18 months, the outlook was getting better, Jellis Craig Boroondara director Campbell Ward said.
His agency sold seven from eight properties at auctions on August 10, with several registering strong results and multiple bidders present.
A lack of supply and strong buyer demand meant prices were starting to pick up, he said.
The standout result was 89 Gordon St, Balwyn, where seven bidders handed the vendor a windfall above the reserve price.
The four-bedroom period reproduction home sold for $3.108 million from a $2.6-$2.8 million price guide, Jellis Craig agent Sue Wooldridge said.
“It was very competitive because of the lack of quality listings and this was a well-maintained house close to schools,” Ms Wooldridge said.
She declined to disclose the reserve price, but it is understood the vendors had a reserve within the price guide and the sale gave them some $400,000 above reserve.
Auction clearance rates had been rising in recent weeks, together with buyer numbers at inspections and auctions, Mr Ward said.
“There has been a massive change, with 3.6 bidders per property now, compared with less than one bidder a property four months ago,” he added.
“Inspection numbers have also gone up, with 30 groups per inspection, but stock levels remain about 30 per cent less than two years ago.”
Balwyn had 130 recorded sales in the 12 months to this May, a sharp fall from the 187 sales over a year to last May, showing the tight supply.
The fall in its median house price was $120,000 between these periods.