House prices in Melbourne: Which houses in Melbourne had the smallest – and largest
The stronger interest in single-family homes could mean more competition than expected for some buyers heading to one of the 338 auctions scheduled in Melbourne on Saturday, but it’s good news for sellers like Lee and Julie Dellit, who are selling their family home by four Bedrooms auction march.
The Dellits have owned their home in Kealba, north-west Melbourne for almost 50 years and have made the difficult decision to downsize this year.
“It’s too big for us now and the lawns are taking up my precious time and Julie’s precious time as well,” said Lee Dellit.
With two daughters, the Dellits, who built the home in 1976 chose four bedrooms for their family and guests.
The fourth bedroom has been converted into an office and sewing room over the past 20 years, giving the couple more space to enjoy.
Her sales agent and Create Vic real estate director, Steven Tabban, said four-bedroom homes are sought after by families looking for an extra bedroom.
But the search was difficult as there weren’t many options for sale. Demand exceeded supply, Tabban said, meaning more competition when they went up for sale.
“Because of market conditions, people only sell when necessary. If you don’t have to sell, wait,” he said. “So it’s harder for larger families to find larger houses, even in the rental market, if we get a five-bedroom house, they leave immediately.”
Jellis Craig Brunswick director Greg Cusack said four-bedroom homes were “highly desirable” in Melbourne’s inner suburbs, where they are rare.
“Two- to three-bedroom homes are far more common,” Cusack said.
Buyers took the opportunity to find and afford a larger home as prices fell and renovations became more expensive.
With interest rates rising and property prices falling, upgrading could become easier for those with enough money as Melbourne’s prices are expected to fall further in 2023.
AMP Capital’s Chief Economist, Dr. Shane Oliver said he still expects prices in Melbourne to fall 15 percent from peak to bottom following a recent rate hike on Tuesday.
He expects the Reserve Bank to hike the cash rate by 0.25 percentage point to 3.35 percent next week before pausing.
“Another increase of 0.25 percent will increase mortgage repayments by $80 a week for someone with a $500,000 loan,” Oliver said. That would mean total redemptions would increase by $12,000 over the year.
While some economists, such as Deutsche Bank’s Phil O’Donaghoe, have predicted that interest rates would rise above 4 percent to bring rising inflation under control, Oliver said it was unlikely.
Especially since that would mean mortgage rates would hit nearly 8 percent and repayments would increase by $15,000 a year on a $500,000 loan.
“People just don’t have $15,000 a year to put on the mortgage,” Oliver said. “It would create significant mortgage stress and we will see distressed sales when that happens.”
https://www.smh.com.au/property/news/which-melbourne-homes-have-had-the-smallest-and-largest-price-falls-20230202-p5chfg.html?ref=rss&utm_medium=rss&utm_source=rss_property House prices in Melbourne: Which houses in Melbourne had the smallest – and largest