Housing affordability set to improve in Melbourne
Melbourne’s property market is set for a reprieve this year, with housing affordability tipped to improve and increase buyer confidence, according to new data.
Moody’s Investors Service forecasts Melbourne’s house prices will moderate in 2018 following a 0.7% fall in the March quarter. CoreLogic data also shows the city’s annual growth rate has fallen to 3.7%, with an average median of $720,433.
Additionally, Melbourne has seen an overall income increase of 3.8% across the city to the year to March – the biggest jump of any Australian capital city. This, coupled with improved affordability, means confidence in the market is expected to grow.
This is good news for house hunters, especially those who have been in the market for a long time and haven’t yet won at auction due to being priced out.
Similarly, investors will also reap the benefits of more affordable stock on the market, especially since demand for rental properties in Melbourne is strong.
Periods of modest price growth are a great time to buy a home. You’ll be likelier to find something that ticks all the boxes within your budget, and when values start to climb again, as they typically always do, your home’s value will also rise.