INDUSTRY NEWSReal Estate NewsVIC Real Estate News

Melbourne property price recovery could take a while

This monthโ€™sย Finder RBA Cash Rate Survey dealt a blow to Melbourne’s property owners, with the majority of experts surveyed expecting housing prices to continue to drop until at least April 2021, with a third predicting we won’t see recovery until 2022 or beyond.

โ€œBoth Melbourne and Sydney experienced double-digit growth throughout most of 2019,” explains Graham Cooke, insights manager at Finder.

“But widespread unemployment, travel bans and a second virus wave has caused a surge in property vacancies throughout both capitals.

โ€œMelbourneโ€™s median house price fell by 3.5 per cent to $881,369 between March and June 2020, and Sydney wasnโ€™t far behind with a 2 per cent drop during this period.”

Sydneysiders shouldn’t rest easy, though, especially given the increasing case numbers.

โ€œAs Sydney teeters on the edge of a second major outbreak, prospects may be equally grim for homeowners here when it comes to the housing market recovery period,โ€ Mr Cooke said.ย 

โ€œIt is clear that there is widespread uncertainty in the market as to what prices will be in the near future.

โ€œWith investors fleeing the market, banks are fighting tooth and nail for owner-occupier customers. Itโ€™s the ultimate borrowerโ€™s market.

“If your home loan has a 3 in front of it, youโ€™re paying too much in 2020.โ€

Show More

Nathan Jolly

Nathan Jolly was an in-house journalist with Elite Agent. He worked with the company from July 2020 to December 2020.