Melbourne Property Market – Prices, Trends, Forecast [November 2024]

The Melbourne property market experienced a slight decline in value, with a -0.2% drop in October, contributing to a -0.8% decrease over the quarter. This trend highlights the challenges in the current economic climate, marked by high interest rates and reduced buyer activity.

Melbourne Property Price Growth

Annual change in dwelling values shows a -1.9% decline, with the median dwelling value now at $778,926. This reflects ongoing price pressures and reduced capital gains compared to previous years.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on November 1, 2024

Melbourne Property Market Trends

Melbourne’s property market is witnessing an increase in advertised stock levels, up by 13.0% compared to the five-year average. This rise in supply, coupled with reduced purchasing activity, is creating looser selling conditions and giving buyers more leverage.

Summary of housing values since the onset of COVID in March 2020 and relative to peak levels (onset of COVID calculated from March 2020).

Melbourne Property Market Forecast

The outlook for Melbourne remains cautious as affordability issues persist and economic conditions continue to impact buyer sentiment. Any significant recovery in growth may depend on improvements in economic factors such as interest rates and consumer confidence.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

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Calculate your future property value with these forecasts in mind…

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Conclusion for Homeowners

Melbourne homeowners face a challenging market with declining values and increasing supply. While current conditions may not favor immediate gains, strategic decisions based on local trends and market developments will be crucial for future opportunities.https://whichrealestateagent.com.au/inquire/best-agents/form/#b-step-2

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