Nadia Delmondo, a well-known real estate market expert located in Melbourne, has commented on a recent plot based on CoreLogics Hedonic Value Index. The figure is shown below.

In her opinion, the data showed that

1. (i) The market has increased at a rate of 5% per year since the marked turned around in August 2020 but that this rate of appreciation is fully supported by supply and demand conditions.

2. (ii) The market for units is particularly appealing for property investors because it lags the positive price changes in the housing market.

Date Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 % Change in Values 0 -1.5 -1.0 -0.5 0.5 1.0 1.5 2.0 2.5 3.0 All Dwellings Melbourne median house and unit price values House Prices Unit Prices Date Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 % Change in Values 0 -1.5 -1.0 -0.5 0.5 1.0 1.5 2.0 2.5 3.0 All Dwellings Melbourne median house and unit price values House Prices Unit Prices Date Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 % Change in Values 0 -1.5 -1.0 -0.5 0.5 1.0 1.5 2.0 2.5 3.0 All Dwellings Melbourne median house and unit price values House Prices Unit Prices Date Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Jan 21 Feb 21 Mar 21 Apr 21 May 21 % Change in Values 0 -1.5 -1.0 -0.5 0.5 1.0 1.5 2.0 2.5 3.0 All Dwellings Melbourne median house and unit price values House Prices Unit Prices