House prices in Melbourne

House prices in Melbourne

  If you are in the market to purchase real estate or to sell property in the coming year, you may have your eyes fixed on Melbourne house prices. House prices in Melbourne have largely been a hot topic of conversation at dinner parties with friends, break rooms at the office and more for several years, and there is good reason for this. With a closer look at what Melbourne property prices currently are and what the trends for the upcoming year are, you may decide that you want to act now on your plans to purchase or sell property.

Historically High Property Prices Melbourne

Melbourne house prices have increased in all regions of the metropolitan area at an incredible pace. This includes prices in both inner, middle and outer Melbourne. The most significant increase in house prices in Melbourne has been middle Melbourne, where prices increased more than 13 percent within the last quarter of 2014. In inner Melbourne, the increase for this same time period was 11 percent, and outer Melbourne saw an increase in Melbourne property prices of slightly less than 9 percent. While this was fueled in large part in 2014 by an increase in foreclosure auctions, the fact is that there has been a general increase of real estate values in Melbourne for at least the last decade. For example, the median housing prices in Melbourne in December 2004 was close to $350,000, and the current median price is higher than $650,000.

Property for Sale in Melbourne

Real Estate & Property Market in Melbourne, Victoria. Image by Yasser Alghofily under the CC BY-2.0 License

A Word About Interest Rates

A discussion about property prices in Melbourne would not be complete without discussing interest rates for mortgages. After all, home buyers would not be able to afford to buy real estate if mortgage interest rates were too high. The current interest rates for most qualified buyers in Melbourne are very low, and this trend is expected to continue for 2015 with only slight adjustments due to current economic conditions. This means that buyers may continue to be able to afford to pay currently high Melbourne house prices.

The Trend for Buyers

House prices in Melbourne are at very high levels. Each region has a different average price per square foot, and this makes some areas far more affordable for buyers than others. Generally, the most expensive house prices in Melbourne are found closer to the downtown area. Because of this and because of the rapid rate of increase for Melbourne property prices in the inner region, there will be a growing trend for buyers to look at real estate in outlying areas more heavily than in the inner region of the city.

As demand for inner region properties wanes and as demand for outer region properties increases, you may find that there is a stabilization effect on property prices Melbourne across the region. Ultimately, there will be higher demand for inner region properties because of the desire for many to live close to where they work and to take advantage of the benefits of urban living. However, house prices in Melbourne may dictate moderate stabilization at some point.

With how rapidly Melbourne property prices have been increasing in recent months and years, it is understandable that this continues to be a popular topic among friends and neighbors. Some will choose to relocate to take advantage of prices now before they rise to even higher levels. Others will choose to remain in their current property and enjoy the financial gain associated with the appreciation of the property they currently own. Because you may generally expect property prices Melbourne to continue to rise, now may be an opportune time to buy real estate if you plan to do so in the coming year. You may speak with a real estate agent in greater detail about your plans and desirable timing to move forward with your real estate plans.

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