Melbourne Real Estate

A Look at the Melbourne Property Market in 2017

Melbourne’s property market spent several decades being undervalued, but after a rapid shift in mortgage valuations and availability back in 2002, the region has quickly become one of the most sought after in Australia. As a result, home valuations have experienced a substantial increase in their value, with many tripling and even quadrupling in price. The Melbourne property market in 2017 looks set to continue this trend; but will this extend to the near future and should sellers act now?

The statistics

According to a recent poll of homes sold in June 2017, the average value of property purchases rose by 1.8% in Melbourne. This led to a greater increase in profits for sellers which, when paired for the higher demand for properties in Melbourne, resulted in a high turnover of homes in the first half of this year.

But after experts recently released further information pertaining to this growth in value (and sales), further studies were conducted that suggested a major shift in the value of homes come 2020. Industry insiders have stated that the recent increase in property prices can be put down to the current state of the economy within Australia; with banks experiencing a boom in mortgage applicants as a result of cheaper interest rates.

As things settle however, the values of properties is expected to drop come 2020; although by how much is still in debate. What is certain however, is that if prices are expected to reduce in less than 3 years’ time, taking advantage of the potential to obtain a higher valuation on a home right now should certainly be something that sellers are considering.

And what about buyers?

On the other side of the coin, one group of individuals that may not find themselves being too affected by the fluctuations within the property market are those looking to purchase. With banks now extending increasingly fairer mortgages and home loans to viable applicants within the country – securing a good interest rate or a flexible repayment package is now more achievable than ever before.

That being said, even as the prices of homes are expected to drop come 2020 – buyers won’t be too affected, as they will still be able to take out mortgages; albeit at lower amounts, technically offering them the potential to save thousands of dollars over the duration of a mortgage repayment plan.

How can this affect sellers?

For those that are keen to take advantage of the current high fluctuation in property values, the time to act is now. 2017 looks set to experience an increase in property prices and so selling between now and the middle of 2018 can be an ideal way to enjoy a higher profit; but with no guarantees it can be a much more advisable idea to consider selling now to avoid the approaching risks.