This is what will most likely happen with property prices over the next 6 months.
As we have now passed the solstice and also the midpoint of the year, it's time to start thinking about the second half of the year and what is likely to happen with the property market in Melbourne between now and Christmas. A good place to start with predicting the future is to look at history, trends and what's making news in real estate.
CoreLogic has just released a report stating that mortgage serviceability is cheaper than renting over a third of Australian properties. There is also a shortage of properties as a result of C19 restrictions and ongoing lockdowns. As a result, vendors are holding back, putting properties on the market unless they really need to sell.
The interesting fact is buyers who need to buy still need to buy, lockdowns don't change that. There are as always, however, some smart sellers that are capitalising on the acute property shortage and taking advantage of the perfect storm to sell for a record price.
All markets are driven by supply and demand; shortage drives up prices, cheap money drives up prices, travel restrictions drive prices up, as people decide to spend more money locally on new homes for themselves as they are unable to spend money travelling.
All these factors are contributing to upward pressure on prices. After all the past lockdowns, we have seen a surge in activity and prices as pent up demand floods the market. I expect this to continue between now and Christmas and we are most likely to see further upward pressure on quality, well-located properties in short supply.
Click Here for a link to the CoreLogic Report