Of all the property blows that have been landed since the onset of the COVID-19 pandemic, it’s houses in Melbourne’s high-end suburbs that have copped it the worst.
S&P Global Ratings say the second Melbourne COVID lockdown and lack of migration will hit house prices by 10 per cent.
Auction clearance rates might be looking a little healthier of late but economists say a housing oversupply and uncertain buyers will see house prices still drop by around 10 per cent this year.
Prior to the coronavirus nightmare Melbourne’s median house price rose two per cent in the March quarter but is expected to start falling from this point.
The renewed surge in house prices of late is welcome news for some but could see a return to some more macroprudential tightening.
Melbourne’s median house price has risen for the first time in 18 months, reflecting growing sentiment that the market downturn is over.
Improving auction clearance rates in Melbourne suggest house prices will rebound over the next 12 months but leading economist Shane Oliver says any upswing in prices could remain fairly constrained.
A lot of Melbournians start thinking about the warmer air in Brisbane this time of year and investors might also want to start thinking about property there.
The federal election result appears to have given a boost of confidence to the housing market and to assist matters regulators are moving to ease up on their restrictive lending policies.
Property investors have been popping up back out of the woodwork searching for super-cheap bargains before a possible Labor election win and subsequent negative gearing changes.
