Property Market Melbourne Turns, Buyers Should Move Quickly
As the effects of the COVID pandemic seem to have ceased in Australia, the once discounted housing prices are now turning upwards again. It follows that the opportunity for Melbourne residents who are hopeful about entering the property market in Melbourne is gradually shrinking. Domain reports that some insightful owners have purchased historically expensive properties at a discounted rate and sold their entry level homes in the process. This was possible because the discount on the more expensive home was worth more than the loss on the sale of the entry level home. However, these occurrences are predicted to lessen in the near future.
There have been two interest rate cuts in the past two months and a change to bank lending rules that allows lenders to lend more. This has resulted in auctioneers being able to secure higher rates for property and has resulted in an overall increase in sales value of 0.3%.
As COVID-19 vaccines become available and worldwide trauma begins to heal, it is expected that the value of Melbourne’s property market will continue to increase steadily. It appears as though it is still a good time to buy property, but the clock is ticking.
Over the past six months, there has been very good value available on property as confidence in the market slumped. As mentioned, many buyers have taken the opportunity to trade up. Despite this, not everyone was fortunate enough to take advantage of the lower housing values due to the lack of overall property availability.
The phenomenon of a decrease in values has been called a “reverse creep gap”. When two people buy houses and one is worth more than the other, and the price of housing increases, the difference between the final values is called the “creep gap”. When the opposite happens (property values fall and person A loses more than person B), the term to describe this phenomenon is called the “reverse creep gap”.
Despite slow but steady increases in property values in Melbourne, the high end of the market, namely, houses with a value over $4M, has yet to see a strong increase in property values.
As the market improves, buyer confidence is increasing too. People who have lived in fringe areas for a while are increasingly moving to unrenovated inner city areas. There is a lot of availability in the market for this type of purchase if you know where to look.
Contact UHomes if you are looking to enter the property market in Melbourne. We build and design custom homes and have land packages available to suit any budget. Call us any time Monday to Friday, 9:00AM to 5:00PM on 03 90485737 to book your appointment and start building your dream home.