The New Year brings a sense of excitement. 2019 offers up a fresh start filled with new possibilities, and that certainly could ring true for Aussie house hunters this year.
The beginning of the year could offer greater affordability for buyers with property prices expected to continue to fall, or at least remain idle.
So, if you’ve been wanting to take that first step on the property ladder, this could be your year. Let’s take a look at what the experts are predicting for the housing market in 2019.
Melbourne’s property boom has slowed (for now)
After reaching a peak in 2017, last year finally brought some relief for buyers with prices stagnating or even lowering in some markets.
This cooling of the property market is a result of the Australian government and the major banks tightening up lending, as well as an increase to interest rates*. For the first time in over five years, it has become a buyer’s market.
Premium properties in highly sought-after suburbs remained steady through 2018, while other areas saw reductions in prices of up to 9%** and auction clearance rates dropped from 70% to 50%*.
What does this mean for property prices in 2019?
Housing prices are predicted to remain flat for the months ahead, but historical trends show that the market won’t stay that way. Some predict prices could begin to recover as early as 2020**.
In an article for the Daily Bulletin, Mark Ribarsky, the founder of Wise Real Estate Advice and Property Managers Melb, suggests “A savvy buyer would be wise to act rather than waiting for the market to pick up again.”*
If you’re in the market to buy, the first half of the year could offer some particularly good property deals with prices expected to fall by a further 1%**.
So, strike while the iron’s hot! Or, in this case, cooler.
For those who are already in the market, it’s a good idea to hold tight. There is little doubt that the market will recover, it’s just a matter of when.
According to recent reports, Melbourne’s population is growing steadily and will continue to fuel the demand for housing into the future^. In fact, some suburbs haven’t been affected by the market downturn at all and have actually increased in price*.
Housing hotspots to watch in 2019
Some regional areas are seeing strong growth and offer huge potential for first time investors. In the last 12 months, Geelong has recorded the highest capital gains in Australia with property values up 10%+.
Other areas to watch include Bendigo and Ballarat. It’s all about knowing where to look for best performing suburbs.
Make 2019 your year
If you thought you had been priced out of certain areas, it could be well worth your while to revisit them. Prices could have shifted in your favour in the last 12-18 months.
Don’t wait too long to act though. As more and more new homebuyers surge back into the market throughout 2019, this will soon have an effect on property prices.
If you’re not sure where to begin your property search, contact the Neue Black team today for up-to-the-minute property market insights and advice. This really could be your year to enter the property market.