If you’re trying to establish a foothold in the property market and struggling, recent data from CoreLogic might explain why.
The median house price in Melbourne is $860,000 according to CoreLogic data. But their modelling shows that if an average household with a gross annual income of $100,000 saved a 20% deposit, they could only borrow enough to buy a property worth $513,000 – without spending more than 30 per cent of their income on mortgage repayments.
And where in Melbourne might you find houses valued at $513,000 or less? Currently, in just two suburbs: Melton and Melton South.
In a recent interview conducted by Domain, I explained that the rising cost of living was also impacting buyers’ ability to make a purchase. And with investors selling because of higher taxes, Melbourne doesn’t have enough buyers with suitable borrowing power to meet the increasing supply. I also suggested buyers could no longer see value in Melbourne’s high-end properties, and were seeking more affordable options.
With Melbourne house prices dropping as much as 6 to 9 per cent during the December quarter, it remains to be seen if property prices can realign to meet the average Melburnian’s borrowing capacity – a target currently still well out of reach.
Chat to us about how a property advocate can help you sell or buy in the current market with confidence. Investment buyers can receive invaluable support and guidance through our Buyers Advocacy Service, and for landlords who are selling, our Vendor Advocacy Service helps vendors achieve outstanding results.
To book a free 20-minute consultation, simply click here and choose a time convenient to you.
