Let’s face it – the property market is hot in Melbourne, particularly if you’re a seller. With interest rate cuts fuelling demand, the time is certainly right for any homeowner’s thinking of selling.
After a ‘quieter year’ in 2014, Domain Group’s senior economist Dr Andrew Wilson said that the Melbourne market was moderating as it turned around. “The Melbourne market has stepped up a gear,” Wilson says. “It’s a market that’s certainly on the move… aspirational buyers, particularly to the eastern suburbs, continue to drive the market.”
Here it is in a nutshell – Melbourne’s property market is soaring. Houses are selling for hundreds of thousands more than expected and as it continues to grow – buyers are finding their price range is diminishing.
Other industry experts such as CoreLogic RPData spokesman Robert Larocca said Melbourne’s property market was performing better than it had done in years. And it doesn’t stop there; Larocca continued to state that he believes that “In terms of price, we’re on the cusp of it being better than it has been before.”
What’s driving this?
Let’s break this down. 2014 saw a record-breaking auction boom, with more than 40,000 auctions. This really pushed up prices, seeing inner Melbourne increase by 11.7 per cent, middle Melbourne increase by 13.2 per cent and outer Melbourne by 8.9 per cent.
Four new suburbs joined the ‘million dollar club’ for the first time due to ‘the ripple effect’ – a theory where booms typically start in their prime areas, and send ‘ripples’ out to their neighbouring suburbs as ‘priced-out’ buyers look for the next best thing. For example, last year we saw the suburb of Northcote rise to a median house price of $1,065,000, a result due to the flow-on effect from Fitzroy North.
Another feature driving the market forward is that interest rates remain at an historic low. It is near impossible for interest rates to get any lower and in the lead up to the Autumn/Winter buying season the market remains solid.
“I’m thinking of selling– what should I do?”
Even though it’s a seller’s market, don’t be lazy – look around your house and fix up any obvious issues before putting it on the market. This could be anything from tidying up the garden to adding that deck you’ve been thinking about. Selling your home is in your own hands, you want to get top dollar so make sure your home is set up for maximum ‘sales’ value.
“I’m buying – what should I do?”
Flexibility is key. Don’t get fixated on an area. Do your research, speak to the experts and find that perfect home. Prioritise your preferences and make a decision that’s best for your family. Buying a home is an exciting but stressful process, so why not leave it to the professionals to guide you through.
Is 2015 the year for you?
Still need more direction? We are here to help.
Mortgage Broker Melbourne take the time to negotiate the best available rate that suits you individually, rather than simply accepting the standard rate on offer. Get in contact with Mortgage Broker Melbourne and our staff will assist you with any queries you may have.