The spring market update
The spring property market is in full swing, bringing welcome news for many buyers. With a steady increase in new listings across Melbourne, more homes in sought-after inner blue-chip suburbs are becoming available. While there has been a high volume of listings recently, much of the stock has been investor-grade.
We’re concerned that new listings will dry up without enough property replenishment between now and Christmas. If this happens, we’ll likely face a more competitive market and reduced availability of premium properties.
Over the past couple of months, we've seen a surge in new clients, reinforcing our belief that there is a solid pool of active buyers. This activity has been fueled by the consensus that interest rates have likely peaked, encouraging more people to start their property search.
However, buyers' mindsets have shifted compared to three months ago. They are now more cautious, sticking firmly to their budget limits and less willing to overextend themselves. Coupled with the rise in listings, this has created a buyer's market, leading many sellers to adjust their price expectations downward to make a sale.
So, what is the key to success in a buyer’s market?
If you want to make a smart purchase, it boils down to one essential skill: negotiation. While that might sound simple, you need to remember that real estate agents are seasoned negotiators—they do this all day, every day. Their job is to secure the best possible price for the seller, so having strong negotiation skills or employing a professional buyer’s advocate is critical to ensure you're getting the best deal possible.
What about the longer-term outlook for Melbourne?
We believe Melbourne's property market is significantly undervalued when considering the city’s future potential. While the medium-term outlook may remain subdued, we anticipate a strong upside when the market rebounds.
Melbourne is projected to be Australia’s fastest-growing capital city, with an average annual growth rate of +2.0% expected from FY2025 to FY2028. Population growth and continued robust job prospects will ensure the city's demand fundamentals remain solid.
For savvy investors and home buyers, Melbourne’s current property market presents a unique window of opportunity. Buying in a market that is on the verge of recovery could deliver significant returns as economic conditions improve and interest rates start to decline.
My parting piece of advice.
Now is an ideal time to enter the Melbourne property market. Buyers hold the advantage, and those smart enough to secure a property now are likely to reap significant rewards in the next one to two years. Don’t wait for demand and prices to rise—book a free 15-minute discovery call today to explore how we can help you find and secure your dream home.
Managing Director
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