What is happening with affordability in Melbourne?
Both of Australia's largest cities have been experiencing some impressive growth over the past year, and according to CoreLogic RP Data, it's reached double figures.
Melbourne has increased a whopping 13.9 per cent over the past year to have a median dwelling price of $797,150, while Sydney's 13.05 per cent growth is less but still nothing to be sniffed at. With this sort of annual growth, it shines a harsh light on the problem of affordability around the country, but an 8 June media release from the Real Estate Institute of Australia (REIA) shows that growth might have slowed down a little over the first three months of this year.
If this slowdown translates into heightened competition among buyers in the housing market, what will it mean for your buying chances? Other bidders driving the prices up and keeping you away from that new title means using the services of a buyer's agent from Cohen Handler could be even more valuable than ever before.
What's happened to the market?
Melbourne is one of the cities that has seen a significant decrease in growth through the first quarter of 2016, and this is leaving the door open for buyers to cash in and take advantage while the prices aren't as inflated.
"Over the quarter, the weighted average capital city median house price decreased by 1.3 per cent while the figure for other dwellings went down by 1.1 per cent," stated REIA President Neville Sanders.
"The quarterly decline in prices can, in part at least, be attributed to the influence of the macro-prudential measures on the housing market introduced to curb investor activity. Compared to the March quarter of 2015, the weighted average median house price increased by 4.1 per cent while the figure for other dwellings went up by 3.3 per cent."
Such a major change in growth is going to be seen by many buyers as a push toward spending money, so beating people to the post will ensure your chances for owning your dream home will be much more realistic.
The average time it takes for to secure your dream home for you is between two and eight weeks!
With the help of a buyer's agent, you'll also have a professional making sure you get the property for the absolute best price possible. This could end up saving you thousands from your initial outlay, shaving years off your mortgage repayments.
Along with that, and probably the most beneficial factor when using a buyer's agent, is the amount of time you'll save. According to research from UBank, and reported by Canstar, 36 per cent of South Australian buyers take more than six months to find a home, while 9 per cent of those take over two years. The average time that it takes for a buyer's agent to find and secure your dream home for you is between two and eight weeks!
But why Melbourne?
There are plenty of positive regions around the Australian property landscape for finding capital gains, and Melbourne has a high concentration of these in close vicinity to the CBD. St Kilda, for example, is a fun and cultural seaside suburb with a spread of luxury and affordable homes. Closer still to the city centre lie Cremorne and Southbank, which both lie on the world-famous Yarra River.
These are just three options that are recommended by buyer's agents here at Cohen Handler, and that's because of how strong the potential for capital gains is over time. The developments in Melbourne, combined with the fabulous public transport and raging sports and music scenes, make this a desirable city to live. When considered against the backdrop of the current affordable climate, getting into a Melbourne property now is a savvy move.
Contact Cohen Handler today to speak to a buyer's agent about buying your dream home in Melbourne.