Not only that, mortgage rates have fallen as well, which makes it a great opportunity for prospective homebuyers. Since the last peak in April 2020, Homebuilders in Melbourne witnessed a notable change in the industry. With the lack of buyers in the city, property prices dropped down to 5 percent, says CoreLogic.

February 24, 2021, During the pandemic, many restrictions took place. The city's border and flights were restricted, preventing outsiders to settle in the city. But, life now in Melbourne is slowly and steadily coming back to normal. As a result, new properties are being listed in the city. Talking about the auction clearance rates, they ended up strongly in the year as well.

Now that the outbreak of COVID-19 is dissipating, new residents have started to take place in the city. According to the data provided by ABS, builders, Melbourne could also surpass Sydney in population by 2026, meaning more houses will be sold, and more investors will be grabbing up the new properties. “It’s a high time people put their best foot forward and negotiate hard on the properties," says Peter Wargent – buyer’s real estate agent.

Talking about the forecast of the property market, despite the headwinds the real estate industry has suffered during the pandemic, and the graph of the economy going down, the prices of properties are likely to increase by six percent in 2021. Whereas the prices in Sydney will leave Melbourne far behind by getting an increase of 7 to 11%, says Louis Christopher, SQM Research managing director. The increasing rates of properties also hold back those potential buyers who are tight on budget, so if you're someone who wants to get out of a rented house, and looking for a home whom you can call all yours, now is the time.

It seems the role of the investors will enormously contribute to the seamless drive of the real estate market. During the pandemic, no investor was willing to put their money on the line due to uncertainty and the absence of vaccines. So, those who have been waiting eagerly to increase their capital growth will show up altogether, which will take the real estate sales graph upward in a short period of time.

It is also notable that the interest-only loans are now available with ease, and as mentioned earlier about the lower mortgage rates, we’re expected to witness more and more investors and people showing up in the industry. With that being said, the right time is still here, home builders' Melbourne prices are still lower compared to pre-COVID-19 prices.

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Nostra Homes
29 Keilor Park Drive,
Keilor Park, VIC, Australia
Phone: (03) 8331 3599
E-mail: [email protected]