If you've been trying to enter the real estate market in the last 18 months, you'll know that city prices have been on a rapid increase. Melbourne, in particular, has seen property values increase by a whopping 16.2% in the last year alone. Shockingly, Melbourne's housing values have not risen as strongly as other Australian Capitals. Price growth rates could be thanks to Covid 19, severely affecting the Melbourne property market due to their repeated and prolonged lockdowns. However, now that Melbourne has broken free of its lockdown bubble, experts predict Melbourne property prices will soar into 2022.
For first home buyers and investors wanting to take advantage of meager interest rates at the moment, you might be waiting for the market to crash. But, unfortunately, prices today might be the lowest you'll see for many years. Banks like ANZ&Westpac have recently updated their property price forecasts in response to the market's resilience in the face of repeated lockdowns. Westpac sees the Melbourne property market growing 18% in 2021 and 8% in 2022.In even more unappealing news, the upturn cycle in the property industry historically lasts several years before interest rates increase and the real estate boom is cut short. So, in simpler terms, you might be waiting a very long time before the so-called 'market crash. Due to the unprecedented growth rate the Melbourne property market has seen, the rates of house price growth have not been recorded this high in several decades. Whether the market continues to grow at the current rate or experience slower growth over the next few years will depend on new lending measures introduced. Either way, experts aren't predicting any price decreases on the horizon, only a less impressive growth rate.
Melbourne's house price growth is more substantial than its unit growth. With larger homes in high demand, these more expensive Melbourne properties outperform less expensive homes. Making it more challenging for families to enter the market.
Over the last few decades, Melbourne has taken out the title of the 'most liveable city' more times than any other city in the world. Melbourne faced challenges with the Covid pandemic, but now buyers and sellers are back, and consumer confidence has returned tenfold. Property transaction numbers are increasing, and prices are rising with no signs of slowing down. It seems that everyone got the memo about Melbourne being the most liveable city in the world. With the Melbourne property market the way it is. Homebuyers are looking for living alternatives at more affordable prices.
With Melbourne suburbs in high demand and house prices on the incline, more homeowners are setting their sights on Regional Victoria. In addition, with public transport making the city extremely accessible from these regional suburbs, Regional Victoria is becoming a highly sought-after destination for Melbourne residents. Experts are predicting suburbs in Regional Victoria to boom over the coming years. Investors and first home buyers, in particular, are taking advantage of low-interest rates and incredibly affordable land and home build pricing. Melbourne property prices have been climbing at a breathtaking pace over the last 18 months, with more growth expected over the next few years. This is excellent news for current homeowners but heartbreaking for house hunters trying to enter the market. With a Regional Victorian home, buyers can take advantage of affordable homes while still commuting to the city for work. Better yet, thanks to the pandemic, more employees can work from home, making regional living even more appealing. If you're sick of scrolling realestate.com.au and waiting for the market to crash, you can read more about what to expect from regional living here. Or contact us to arrange a chat with a team member to discuss a package that will suit you, your family or become a valuable asset in your property portfolio.