Melbourne Property Market Predictions: Navigating the Real Estate Landscape

Are you curious about the future of Melbourne’s property market? As we step into 2024, let’s explore the crystal ball and uncover what lies ahead for homeowners, investors, and first-time buyers.

1. PropTrack Property Market Outlook Report

The PropTrack Property Market Outlook Report sheds light on Melbourne’s real estate landscape. While the outlook is bright, there are nuances to consider:

• Price Growth: Melbourne house prices are expected to rise by up to $37,000 in 2024. However, a landlord exodus due to rising state government taxes has flooded the market with more homes than any other city. As a result, Melbourne may lag behind other capitals in terms of growth.
• Forecast: The report forecasts a 1-4% increase in Melbourne’s property market over the next 12 months. This could potentially push the median house price beyond $950,000.
• Interest Rates and Migration: Despite rising interest rates and building costs, Melbourne’s substantial share of incoming migration could drive home values upward. The fact that we’re near peak interest rate levels might encourage more people to buy homes.
• First-Home Buyers: While it’s a tough year for first-home buyers across Australia, record-low rental vacancy rates may motivate some to transition from uncertain tenancies to homeownership.

2. Other Perspectives

Let’s explore contrasting viewpoints:

• Westpac’s Prediction: Westpac predicts a 5% rise in Melbourne’s house prices by 2024. Although less than Sydney, Brisbane, Adelaide, and Perth, this growth could potentially double the unexpected $17,000 (1.9%) increase Melbourne experienced in 2023.
• NAB’s Forecast: On the flip side, NAB forecasts an 11.4% fall in Melbourne dwelling prices in 2023. This correction follows subdued gains of 1.2% in 2022.

3. The Melbourne Market Dance

As Melbourne’s property market waltzes between optimism and caution, here’s what you need to know:

• Investor Exodus: Many investors are looking to exit Melbourne due to increasing taxes. From next year, investment property owners will face higher land tax costs as the state government aims to recover Covid-era budget losses.
• Opportunities for Buyers: Ironically, landlords selling off rental properties could create opportunities for first-home buyers. Escaping uncertain rentals, they might find a way to enter the market.

4. Your Next Move

Whether you’re eyeing a dream home, an investment property, or your first abode, Melbourne’s property market awaits. Keep an eye on trends, consult experts, and consider your unique circumstances.

Remember, the real estate journey isn’t just about transactions; it’s about finding a place to call home—a canvas for your dreams and memories.

For personalized advice and property insights, reach out to experts like Sudheer Reddy at 0452384994. Let’s navigate this exciting journey together!

Disclaimer: All predictions and forecasts are subject to change based on market dynamics, economic shifts, and unforeseen events. Consult professionals before making any real estate decisions.

Sources:

1. PropTrack Property Market Outlook Report
2. CBA Predictions
3. NAB Forecast