Analysts expect Melbourne home prices to decline by as much 10 per cent in 2019, which means buying a property now with an intention of selling it seems to be more of an expense instead of an investment.
ANZ economists believe that the price slowdown will persist over the next two years. Hence, it would be a wiser choice to look for options, such as Donnybrook real estate. The capital city of Victoria (VIC) isn’t the only one that would likely be affected with lower prices.
Sydney’s housing market would also be vulnerable to the projected price slowdown within the two-year period. The decline in home prices could be an indirect result of tighter lending standards among banks.
ANZ’s research note showed that prices in capital cities nationwide will take the hardest hit, while suburban areas would only record a moderate drop.
First-time buyers might see the slowdown as good news, but take note that median prices are still expensive in many cities. As of May, the average cost of a home in Melbourne reached more than $720,000.
Some industry experts believe that there isn’t a proper time for snagging the best property in the market. It’s not always easy to buy homes when prices are low, since owners are unlikely to sell their properties in a weak market.
When you find a property development near Melbourne that fits your needs, you should decide on a potential purchase. It’s best to conduct your own due diligence as well, and not just rely on your broker’s information.
It remains to be seen whether or not home prices would indeed decline in Melbourne by next year, but it pays to be cautious when planning an investment. Prices in the city are still expensive, so consider putting your money in a different market to avoid a high level of financial risk and exposure.