To Buy or Not to Buy: Assessing the Melbourne Housing Market
Melbourne is one of Australia’s most diverse cities and is well-known for its cuisine, art, and culture. Melbourne is a desirable location for many due to its stunning architecture, first-rate public transportation, and top-notch educational institutions. In addition, the house packages in Melbourne are flourishing, and many people are considering purchasing a home there.
If you fall into this category, it is essential to consider whether the present time is favourable for purchasing a home.
Over the past ten years, housing packages in Melbourne have expanded steadily, with an average annual increase in property prices of 8%. However, the COVID-19 pandemic has significantly affected the housing market, bringing about a brief downturn in 2020. But since then, the housing market has rebounded, and prices have begun to rise once more.
Some significant figures about the Melbourne housing market
- Melbourne’s current median house price is upwards of $800,000, which is more than most other Australian cities.
- In Melbourne, the average annual increase in home prices has been around 9%, though some suburbs have seen even faster increases.
- Melbourne’s real estate market is showing signs of health and competition as more new listings come on the market.
- Melbourne’s housing market is moving fairly quickly, as evidenced by the average time on the market for a home is around 30 days.
- After a COVID-19-caused downturn, the rental market in Melbourne has also recovered, with rental prices rising by about 2% compared to the previous year.
The Pros and Cons of Buying a Modern Melbourne Home
Before making a choice, weigh the advantages and disadvantages of purchasing a home in Melbourne.
Pros
- Strong housing market: The Melbourne housing market is currently strong and competitive, with strong growth rates and a high number of new listings.
- High potential for capital growth: The Melbourne housing market has a long history of exhibiting strong potential for growth, which suggests that your investment will likely appreciate over time.
- Lifestyle advantages: Melbourne is an exciting and vibrant city with lots of opportunities for entertainment, culture, and education.
Cons:
- High property costs: Due to the cost of purchasing a property, with Melbourne’s among the highest property costs in Australia, purchasing a home is more challenging.
- Market alterations: The housing market is susceptible to change, like new home designs trends and is occasionally unpredictable.
- Limited affordability: First-time buyers or those with limited financial resources may find it more challenging to enter the market in Melbourne due to the city’s high property prices.
There are several methods you can employ if you’re thinking about purchasing a home in Melbourne to help you make a wise choice:
Perform research
Look into the costs associated with buying and renting homes in Melbourne, as well as growth rates. This can help you decide whether now is a good time to buy.
Find the right house
When looking for a home, also consider looking for a reliable house builder in Melbourne that satisfies your needs and preferences as well as your financial constraints.
Think about your financial position
To ascertain whether you can afford to purchase a home in Melbourne, evaluate your financial situation, taking into account your savings, income, and expenses. You might also seek advice from a financial advisor or a mortgage broker.
In the end, the choice to purchase a home should be based on your circumstances and preferences, as well as a thorough examination of the most recent home designs in Melbourne and prevailing economic conditions. Make sure your choice is in line with your long-term objectives and financial situation by conducting research, speaking with experts, and getting their advice. Whether you decide to purchase now or wait, Melbourne is a dynamic and exciting city that provides providing a high quality of life for both residents and visitors.
To know more about our affordable home designs, contact our team at Elite New Homes.