Melbourne’s housing market looks set for another year of modest price falls amid weak sentiment, curbs on borrowing money and a wave of new supply.
But experts hope the city’s surging population will put a floor under the declines as more new residents look for family homes.
The city’s residential market has been coming off the boil after five years of soaring prices, with a regulatory crackdown on bank loans and scrutiny of lending standards from the financial services royal commission.
“Most buyers will want to live within 10 kilometres of the city if they can afford it, and they want to live close to the top schools in Melbourne, it might still drop a bit further, no-one knows for sure … now, there are some good opportunities.” States Jellis Craig.
Even amid the weaker conditions, buyers will still need to do some work to find a good deal, Cohen Handler buyers’ agent Amanda Jones said.
“Buyers still have to really know how to negotiate after an auction,” she said. “Just because it gets passed in or it doesn’t sell, they think they’re going to get a bargain.”
She also sees off-market opportunities, where homes are not listed publicly for sale but shopped around quietly to parties who might be interested.