This spring has been one of the best selling seasons in years: Williamstown state of the market

It’s no secret that this spring has been one of the best selling seasons in years. In Melbourne, it started in late August in the lead up to the AFL Grand Final; we saw more stock coming onto the market, more buyers house hunting, and values jumping by 5% over the September quarter.

But in the Melbourne suburb of Williamstown and surrounding areas of Spotswood and Newport, the spring boom began much earlier. Our activity surged in May, prior to restrictions on first home buyer grants taking effect. This was somewhat expected, particularly in Spotswood and Newport; with current median home prices in these suburbs at $600,000 and $625,000 respectively, the area’s affordability makes it a natural choice for first timers.

Since then our results have mirrored the wider Melbourne market and continued from strength to strength. From September to the end of October we had more than double the number of listings than the same period last year. Demand is definitely back. In late September we sold 44 Junction Street, Newport (pictured below) for more than $100,000 above reserve.

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Low interest rates have been the obvious driver for this activity, injecting confidence back into the market that was previously lacking. The change of government has been another factor, with buyers feeling more comfortable about the economy post-election and encouraged to make decisions about their own finances. It’s also typical for families in particular to buy at this time of year and be settled in their new place in time for the school year.

But there’s a unique trend occurring in the Williamstown region. 57% of buyers from our last 100 sales have come from well outside the local area, and the vast majority of these are owner occupiers. Recently, 129A The Avenue, Spotswood (pictured below), a single fronted period home in need of renovation, was sold to a young professional couple from Mitcham. They also paid more than $100,000 over reserve, having previously been priced out of the eastern suburbs.

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Our popularity isn’t just about affordability – it’s value for money. Buyers are crossing the West Gate because they get so much more ‘bang for buck’.

There are two main submarkets in our area; Williamstown, which is closer to the city, has many homes now pushing into the million dollar market and a median home price of around $830,000. But its quirky vibe, cute cafes, period homes, proximity to the city and affordability relative to comparable bayside suburbs like Brighton, which has a median house price of over $1.7 million, are still major draw cards for young professionals.

On the other hand, Newport and Spotswood are popular with families. It’s one of the few places in Melbourne where they can buy a freestanding home on 500-600 square metres for under $700,000 that is close to the city, public transport and the beach. Several primary schools have recently been built in Newport which are further sparking the interest of this demographic.

Having said all that, the market is still patchy and not at its peak of a few years ago. While buyer demand is strong, there’s a shortage of stock. When affordable family homes are listed in our area they are selling well, but not every property fits that mould so some sellers are still cautious to list their homes.

I expect growth to continue at a steady rate. While there’s been a rapid selling spike in recent months, it’s typical for that to taper off close to Christmas when families are distracted by holidays. Interest rates are predicted to remain stable through this period which will encourage continued activity, but there is talk of an increase in the first half of 2014. This will likely keep growth at modest levels into next year.

In our area we’re expecting some more great results from November auctions, including Castle Street, Williamstown, Melbourne Road in Newport and Bradley Street in Newport (pictured below), which are all listed for under $700,000. Spotswood and Newport are particularly ‘hot’ right now given their appeal among families who are keen to take advantage of interest rates and  settle before the new school year, but it’s also a good idea to do your research into other up and coming suburbs. Neighbouring South Kingsville is definitely one to watch.

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Given current stock levels, it’s a good idea for buyers to broaden their search and look at a variety of properties and areas to get their foot in the door while the financial conditions for buying are so good.