There hasn’t been a better time to buy a house in Melbourne for two decades according to the Housing Industry Association (HIA).
It found buying a house today, as a proportion of your income, was the lowest it’s been since 1999!
The HIA says this has occurred as a result of historically low interest rates (that are expected to fall further) and falling house prices.
Corelogic found Melbourne house prices rose last quarter for the first time since 2017 and auction clearances are the highest in 12 months.
The market is beginning to stir and that means prices will rise too!
The Melbourne affordability index improved +3.0 per cent over the quarter to June 2019 which was the highest of all the major cities indicating we must be at, or just past, the bottom of the market.
Experts are tipping the end of the market decline is in sight and, after modest gains recently, are predicting rising house prices in the not to distance future.
Meanwhile, promotions on new homes have rarely been so competitive as new homes cost thousands less than they did 12 months ago as builders discount to amazing prices .
But how long will it last before the upswing in demand returns and people take advantage of this rare opportunity?
Smart buyers are out in the marketplace securing house and land packages on low deposits.
With Accolade and Monument offering new homes under $400,000 and Monument with townhouses from $369,000, buyers are very keen to secure a new home but there are still some remaining if you move quickly.
People who are wise enough to buy now can see the price rises in coming years will add great value to their houses that won’t even be built until 2020/2021.
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HIA’s Affordability Index is calculated for each of the eight capital cities and regional areas on a quarterly basis and takes into account the latest dwelling prices, mortgage interest rates and wage developments.
For a home buyer with an average income purchasing a median priced dwelling (assuming a 10 per cent deposit), mortgage repayments will consume the smallest proportion of their earnings since 1999.