As we approach another close to the financial year, we look at the crazy Melbourne property market and ask ourselves, “where to from here?”
2015-2016 has seen historically low interest rates – still holding, and the price of property still rising.
Many First Home Buyers are taking advantage of these low interest rates, and are stepping over the $600,000 (for existing properties) threshold and are forfeiting their Stamp Duty savings.
The median price of a home in Melbourne now is above $700,000.
This year saw changes in foreign investment, which slowed down the market to some degree…..but mainly in the areas that have highly sought after schools.
As autumn spilled into winter, any hope of the house or home prices slowing down were shattered by the low stock levels.
Clearance rates are still soaring and home, house and property prices are still moving upwards.
So, when will this bubble burst? At this stage there is no obvious end in sight.
More stock coming onto the market will help stabilise it. A new government perhaps? Changes to negative gearing? The fallout from Brexit? Possibly. We will all have to wait and see what the new tax year and the changes that may come will provide. But for now, the best advice Buyers Home Base can offer is that if you are still renting – save your money for a deposit. And if you are looking to invest, there are still lots of great opportunities out there!
Julie DeBondt-Barker Founding Director, Buyers Advocate Created Australia’s first low flat fee Buyers Advocacy service. She is absolutely passionate about saving Home Buyers time, heartache and money.