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Melbourne homes still Australia’s best value in August
Over August’s first 3 weekends the Real Estate Institute of Victoria (REIV) recorded more than 1.832 auctions. 1,357 properties sold, 973 at auction, with 350 passed in. 378 properties were sold before auction with 6 properties selling after auction. The clearance rate averaged 79.67%, slightly up on July’s 78.75%. 855 properties were sold by private sale.
Reserve Bank says rate cut unlikely this year
The Reserve Bank kept the Cash Rate steady at 4.35% on August 5 and keeps playing down any chance a cut this year, knowing the inflation rate is still unpredictable. However, economists from Commonwealth Bank and Westpac are still predicting lower rates by November. Given the Reserves Bank’s position, a rate cut in 2024 does now seem unlikely. Home loan rates are currently running around 6 and 7%. That’s around $3,300 in repayments per month on a $500,000 loan from the big banks, but repayments can be hundreds of dollars less if you shop around among mortgage providers.
Units in a purple patch for value growth
CoreLogic has just reported units in many inner suburbs are seeing a greater upswing in value compared to houses. Buyers who may once have been shy of units are increasingly accepting apartments as the way to get into suburbs where houses are just too expensive. It’s happening in inner city spots like Prahran, South Yarra, Carlton, Yarraville, but also further out in places like Black Rock, Box Bill and Blackburn. Units there are getting greater value gains. The shorter commute to the city plus suburb liveability makes the compromise worthwhile.
Why we keep saying it’s a good time to buy in Melbourne
Melbourne’s home prices have not shot up like the rest of the country and this stability means it’s great value now, before price growth kicks into gear again. It’s largely because right now you will not be competing with so many investors. You have to look at what’s happening nationally. Investors are jumping into the market in other States instead, particularly WA, SA and QLD. ABS data says investor loans are up 24.8% on last year and comprise 37.1% of all home mortgage demand. In WA in particular, home values have jumped 23.9% over the last year and investor lending is up 53%, which is more than double the national average (CoreLogic).
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Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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