Melbourne housing market update [video]

The Melbourne housing market has been experiencing steady growth in housing values, although the rate of growth is starting to slow down. In the September quarter, housing values across the nation rose by 1%. However, four capital cities recorded a fall in dwelling values, indicating a loss of momentum in the market.

While some cities are still experiencing growth, midsize capitals like Melbourne are losing momentum. Melbourne saw a decline of 1.1% in housing values during the September quarter. This decline can be attributed to the increase in real estate inventory, which is a common trend during the spring selling season.

Melbourne house prices graph

Source: CoreLogic

The increase in listing numbers in Melbourne has created market conditions that favor buyers. With more options available, buyers have more leverage in negotiations. Additionally, auction clearance rates have been falling, and homes are taking longer to sell. These factors indicate a shift towards a buyer’s market in Melbourne.

Despite the loss of momentum in some areas, the overall outlook for housing markets is still positive. There is expected to be further growth in housing values, although at a gradual pace. Several factors contribute to this optimistic outlook, including improving sentiment, tax cuts, and energy rebates.

You may also want to read: National Housing Market Update

About Tim Lawless
Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au