It’s still expensive to buy a house in Melbourne even if median prices fell by $45,000 over the last 12 months, according to CoreLogic’s Home Value Index.
The index showed that prices in the city cost an average of $665,044. The price decline also caused nationwide property values to drop, which means asking prices in suburban regions could be more affordable for buyers.
If you wish to buy a house that’s not too far away, a land package for sale in Geelong could be a cheaper alternative. The place is normally an hour’s drive to Melbourne, and there’s a higher chance of finding a waterfront property in the port city at a lower price.
You could also save more by acquiring an apartment, as median prices in Australia fell 2.7% by the end of October year over year. Single-family home prices only dropped 0.5% in the same period. Those who plan to buy in Sydney should expect to pay more. Average prices in the city amounted to more than $833,000, after declining by around $70,000, according to the index.
CoreLogic said that the price drop in Melbourne and Sydney have caused home values to decline for the 13th month in a row. An estimated 40% of residential properties are located in these cities, so any price movement has a significant impact on the rest of the country. The market slowdown may persist in the coming months up to the following year, according to experts.
Homebuyers should consider other places near Melbourne since prices there could be lower. If you still plan to buy a house in the capital city as an investment, there’s no guarantee of a price upswing in the near future due to the current market slowdown.