While Melbourne and Canberra have been the only capital cities to record annual declines in their home values of -1.2% and -0.7% respectively, it appears that is about to change.
RBA rate cuts in February and May have helped to boost borrowing power, with further rate cuts expected. In May, Cotality (formerly CoreLogic) research showed 38% of outer Melbourne suburbs have already recorded value growth, with Hume, Frankston and Casey local government areas performing the strongest.
As at the 31st May, Cotality’s Home Value Index showed a 0.4% increase in Melbourne property values, up 1.2% for the quarter to a median value of $791, 303.
Across the wider real estate market, the general consensus of property experts is that combined capital city dwelling prices will rise between 6 and 10 per cent by early next year, with predictions that Melbourne property values could rise as much as 2 to 6 per cent.
The reasons given for Melbourne’s expected rise include boosted borrowing capacity due to further interest rate cuts, increased buyer demand, and the limited housing supply.
So if buying property in Melbourne has been on your radar, NOW is a great time to buy if you can.
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