Melbourne property owners would be interested to read this months market update from Ray White Carnegie.
Will Melbourne’s property prices increase by 10-15% as predicted? Read it here now.
The Reserve Bank’s decision to leave the official cash rate at the historical low of 1.5% at its first meeting for 2017 was widely expected. While it remains likely rates will remain on hold for some time, an increasing number of experts are now expecting the next movement will be up.
A survey by Finder.com.au of 32 economists and other experts prior to the decision showed 58% believe the cash rate is now at its lowest point. But regardless of official movements, 9 News has reported lenders may continue to increase consumer loan rates and as banks continue to limit their exposure to riskier areas of the property market, they are making it harder for some investors to get finance.
The new year has brought with it the usual round of property market predictions for the coming year, which have ranged from boom to gloom. Domain reported that it’s “only a matter of time” before an oversupply of apartments in Sydney, Melbourne and Brisbane causes prices to fall. Conversely, NAB revised its forecasts in late January, saying while apartment prices may moderate slightly, Melbourne house prices are predicted to climb even higher in 2017, rising by an average of 5.6%. Louis Christopher, notably Australia’s most accurate property analyst over recent years, is standing by his prediction of 10-15% growth in Melbourne prices this year.
While the future performance of the market is only a matter of conjecture at this point, as auction numbers began returning to normal levels in the first weekend of February, Melbourne recorded a strong clearance rate of 78.5%. This compares to a clearance of 79.2% over the equivalent weekend last year.
Such a healthy start to the year does bode well for the coming months, with strong buyer demand continuing to outstrip supply in many areas and price segments.