This month’s 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.
“Both 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.
“Melbourne’s median house price fell by 3.5 per cent to $881,369 between March and June 2020, and Sydney wasn’t far behind with a 2 per cent drop during this period.”
Sydneysiders shouldn’t rest easy, though, especially given the increasing case numbers.
“As 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,” Mr Cooke said.
“It is clear that there is widespread uncertainty in the market as to what prices will be in the near future.
“With investors fleeing the market, banks are fighting tooth and nail for owner-occupier customers. It’s the ultimate borrower’s market.
“If your home loan has a 3 in front of it, you’re paying too much in 2020.”
