HOUSE prices in the Mansfield Shire have reportedly dropped 9.1 percent over the past year to a median of $663,750, according to Domain’s House Price Report for the June quarter.
According to Domain, the median house price at this time last year was $730,000.
The reported data reflects the broader Mansfield Local Government Area (LGA), not just the township itself.
Across the state, in Bass Coast, which includes Inverloch and Phillip Island, Domain notes house prices fell by 6.3 percent to a median of $726,000 over the same period.
The Northern and Southern Grampians experienced declines of more than 7 percent each.
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National media coverage has suggested that holiday-home owners and investors are selling up in these regions due to cost-of-living pressures and land tax costs.
In a reverse post-COVID trend, which saw drops in metropolitan areas and booms regionally, Domain reported Melbourne achieved the strongest house price gain in 2.5 years, rising by $18,000 (1.7 percent) over the June quarter.
New record prices have also been reached in Sydney, Brisbane, Adelaide, and Perth for houses, and in Brisbane, Adelaide, and Perth for units.
Dr. Nicola Powell, Domain's Chief of Research and Economics, noted that house prices in many parts of regional Victoria have now dipped below their pandemic peaks, with Mansfield seeing its biggest historical peak, and now pulling back.
"This decline follows a period of extreme price growth, where at its peak, house prices rose by 37.4 percent in the 12 months to March 2022—the steepest annual rise in the LGA's history, reaching an all-time high of $735,000,” she said.
“The sharp increase in prices, combined with a deterioration in borrowing capacity and overall stretched affordability, has led to this pullback.”
Local real estate agents in the area haven’t reported this price decrease but have noted a longer median time spent on the market, and believe the region still retains strong interest from potential buyers who are looking for properties with unique features and good investment potential.
Domain’s June report summarised the current housing market across the country.
“The housing market continues to defy all expectations, growing despite low consumer sentiment, stretched affordability from cost-of-living pressures, and high interest rates,” the report said.
“It is likely that current demand is being propped up both by existing leverage from the property market and the bank of mum and dad – factors likely to become stronger due to persistent price growth.
“Given that building approvals across the country have largely been on a declining trend since 2021 – an indicator of constrained supply – the price growth trend is unlikely to reverse itself.
“However, the longer the cash rate stays higher and inflation elevated, the odds for a softer price growth remain.”
