Melbourne Home Prices Forecast To Surge 10 Per Cent In 18 Months
In This Week’s How's The Market | Edition 59
Melbourne home prices forecast to surge 10 per cent in 18 months
Buyers Flock To New Listings In Melbourne
Tradie Reveals Why He Would Never Buy A New Build Post-Covid
Melbourne home prices forecast to surge 10 per cent in 18 months according to NAB
A recent article on realestate.com discusses the findings published by NAB in their latest Residential Property Survey which has estimated a 2 per cent increase in property prices by the end of 2023, followed by a 7.4 per cent jump across 2024.
The 9.4 per cent total growth over the next 18 months would add $75,482 to the $803,000 median dwelling value reported in PropTrack’s July Home Price Index.
The NAB chief economist cited the strong immigration numbers as well as the rising interest rates as major factors.
“Interest rates, people are getting the view that they’re pretty close to the top and therefore, now is not a bad time to invest, I think is the bottom line.” - Alan Oster (NAB Chief Economist).
Now it appears that as some of the uncertainty is wearing off in relation to interest rates and the general sentiment is that we are closer to the interest rate peak, that is actually providing the confidence to the market that many have waited for before investing or buying.
I would like to point out, that at the same time last year, NAB as well as many of the other major banks, predicted that we were set for a 21.8% decline over the year which has clearly not happened.
Whilst we do expect to see further growth across the property market, especially next year if interest rates were to come back and these numbers do feel realistic, I believe the key message here is that there are so many variables at play, that we can’t believe the forecasts.
What The Agents Are Saying
Massive numbers at open homes across Melbourne over the weekend.
The inner city market continues to perform very well as demand far outweighs supply.
I attended 3 properties that had over 60 groups through on the weekend and many other agents have reported very strong inspection numbers as well as auction results even though auction clearance rates did drop to 53.4% according to SQM across the state.
Most of the agents have now returned from overseas holidays and listings are starting to pick up as we head towards the spring market.
The Wow Factor!
10 One Tree Hill, Donvale, Vic 3111
Architecturally Designed Acreage!
A huge double-storey void with high vaulted ceilings marks an impressive sight as you enter the home.
As well as the bright light-filled rumpus.
Price Guide: $3,000,000 - $3,150,000
In The Media
A tradie has taken to Tik Tok to voice his opinions about why he would never buy a property that has been built post-Covid.
He shared the unfortunate fact that builders have struggled to make ends meet recently and workmanship standards have dropped drastically because of that.
The tradie also states that a lot of these new developments are identical inside with only different floor finishes. Stating that these new builds have only one thing in mind and that's money.
I think there is merit to what this tradie is saying. I personally, would never buy brand new. I don't think every single new build is bad but you definitely need to keep in mind who built the property and what their intention was. If it was a volume builder, you know they may skimp on quality for speed every day to ensure the boss is happy. However, a custom builder would probably take a lot more care.
Our advice would be to speak with past clients of their and ask about their experience and see if you can go through their homes (not just the displays.)
Final Thoughts
Things look to be picking up with the inner city Melbourne market poised for a strong finish to the year.
Though it’s important to remember to not believe everything that you read on the headlines!
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
