The last few years have been challenging for the Victorian property market. Many people wonder what the future holds for the Victorian property market. Are housing prices likely to fall if there is a change of government or high inflation?
Although it is almost impossible to predict the future of the housing market in the next few decades, experts can provide insight and predictions on the potential outcomes for the Melbourne and Victorian housing markets in 2023.
If the Labor government proposes more first home buyers, can property investors expect an increase in their portfolio?
What were Victoria’s December 2021 quarter results?
The median house price in Victoria increased by 13.3% in the December 2021 quarter. This is a significant increase from the 1.9% recorded in the quarter before. The average December house price increased from $715,000 up to $810,000.
Victoria’s unit prices saw a similar increase, at 5.9%. Although this isn’t as much growth as houses, it compensates for the decrease in values over the quarter before, which was 2.5%. The December average unit cost increased from $590,000 to $625,000.
The figures for Melbourne’s housing and unit market remain the same. The house prices have risen 11.1% to $950,000 while the units have risen by 5% to $650,000. Country Victoria has house prices that are up 9.9% to $560,000 and units at $410,000.
Looking at the 12 months to 2021, the number of houses in Melbourne and Victoria rose by more than 22%. Units were mixed as Melbourne’s growth was 6.6% and the region’s increase was 9.6%.
Pakenham had 360 sales in the December 2021 quarter, which was the highest sales number. Victoria had 65 locations and over 100 sales.
What will happen to the Victorian Property Market in 2022?
House prices began to fall slightly at the beginning of 2022. Experts predict that this downward trend will continue for some time.
Despite the election of the Labor government and their policies encouraging home ownership and the encouragement of property ownership, the market is likely to slow towards the end of 2022 and early 2023.
While the Labor government’s policies may be appropriate for single parents or first-home buyers, they won’t do much to increase property and interest values. Experts have predicted that this would happen regardless of who won the election.
Buyers are more cautious in a market with interest rate increases and may be more willing to wait and see how house prices change.
Despite the government’s incentives, some people may choose to be cautious. Even though economists at the CBA suggest that house prices could fall by up to 8%, this is less worrying than those at AMP who predict that it could fall by as high as 15% within the next 18 months.
The average house price in Melbourne is $992,000. This is less than the $ 1 million mark it reached in January. This median house price is $84,000 higher than it was 12 months ago. However, many of these property gains could be wiped out by a significant valuation drop.
Victorian Property Market Outlook 2023
It is impossible to predict what the future will bring. We can only speculate on the future based on past information and what experts predict.
According to one of Australia’s largest banks, the NAB, home values in Melbourne will fall by up to 11.4%. This decrease in value will offset many of the gains in 2021, and most likely those in 2022. If this prediction is true, the median house price in Melbourne will be just under $800,000.
These predictions are based on uncertainty about interest rates and what might happen if rates rise as predicted by some. Australia’s opening of its doors to international students and migrants may bring back many investors, which could be a positive thing for market conditions.
First home buyers and investors are advised to avoid trying to predict the market. Instead, enter when it is appropriate for them. Instead of focusing on the property’s worth, it is better to look at the property as a potential investment for a price that suits your needs.
Although predictions can be interesting, they are not always accurate. As we have seen over the past few years, they can also be very wrong.
What are your expectations for house prices in 2023
Many people make the mistake of trying to buy at the right time. Is there ever a perfect time to purchase a property?
Some predictions suggest that house prices will fall in 2023. But when should you enter the market? It is possible to be looking at a property and thinking that you might get it for a certain price. But then, the market changes and you lose out.
It is possible to spend a lot of time looking at data over the past ten years and trying to match up property values and policy changes. You may be able to spot patterns that could give you an indication of the future, or what might happen after certain global events.
You could save between $10-20,000. If you wait too long, the money could quickly turn in the other direction, and you may end up paying that much.
It takes dedication and time to keep your fingers on the pulse of the housing markets. Many people are only able to look at data for a few months when they consider investing in property. Home buyers don’t care about the house price; they want a property that is a good investment and has features that will make their lives easier.
A buyer’s agent can be a great way to get accurate information about the housing market predictions in 2023. A buyer’s agent will analyze the market and help you choose the right location to purchase. This will allow you to get the most for your investment dollars.
Talk to your agent about what you are looking for in a property. They can offer suggestions based on market trends and past experience. In most cases, buying property is about finding the right one for your needs and less about the market price in the short term.
Contact our team if you are interested in purchasing property as an owner-occupier or investment. We’ll walk you through the current market and help you choose the right area to buy your next property.
A knowledgeable and experienced real estate professional can help you stay on top of the market. If you have any doubts about purchasing property, a Buyer’s Agent can help. They will assist you in every step of the property buying process. It is crucial to find the right property, but it is equally important to buy it right at the right time.
Australian Property Market Outlook for 3 Years
In recent months, house prices have been declining in the Australian Property Market, with Sydney and Melbourne leading the charge. These are Australia’s most valuable and largest property markets. BIS believes the current slowdown in house price growth is due to tighter lending criteria. This includes a crackdown upon interest-only loans and record levels (above 200k per year) of dwelling construction.
This trend is expected to continue due to tighter lending standards by Australia’s banking regulator APRA. At a time when our banks are allergic to risk after their belting in Royal Banking Commission, as well as weak wage growth and affordability constraints, and an increased apartment supply, this trend seems set to continue.
Inflation aside, most capital cities are expected to experience modest price drops over the next twelve months.
Then all capital cities will show price growth in the next three years. However, the results will not be consistent.
The good news is that the Australian housing market will not collapse, thanks to record low-interest rates and strong population growth.
According to BIS, the population growth will absorb the large supply of new homes from the recent boom in construction, but any rental growth will be minimal.
