New forecasts about the Melbourne property market have revealed that local property prices are set to soar to record highs by as soon as next month.
The predictions present a mixed blessing for home-owners. While some can reap the rewards of cashing in and profiting, if they bought their property in a past downturn and can now look forward to selling in the anticipated upswing, other buyers planning upgrades and renovations may now face the obstacle of increased values flowing on to create higher costs.
According to the figures release, in December 2019, the median house price in Melbourne was $901, 951. By December 2020, the predictions show that the median price for houses in Melbourne may have jumped 8%, with further climbs of between 3-5% predicted by December 2021.
The same report – Domain’s Property Price Forecasts – February 2020 – show other capital cities also predicted to experience price rises, with Sydney’s current media of $1,142,212 (December 2019) tipped to climb 10% by the same time in 2020 and an additional 6-8% by December 2021. In Adelaide and Hobart, the prediction is for 3% rises by December 2020m with prices going up an estimated 2-4% by December 2021, while in Brisbane, December 2020 should reveal an 8% climb from the current media of $577,664, which is forecast to climb another 7-9% by December 2021. In Perth, the current median of $537,013 is set to hike 5% by December this year, with further climbs of between 3-5% by December 2021. It’s a similar story for Canberra, with December 2019’s media of $788,621 expected to rise 4% later this year, then again a further 3-5% by December 2021.
But what does that mean for you and your existing mortgage, or for new buyers keen to apply for a new home loan?
Because property investment is always recommended to be a long-term strategic investment, anyone who has recently entered the property market can still work towards paying down their mortgage as efficiently as they can – and look forward to great capital growth that can help set them up for a secure financial future down the track.
For buyers who have been sitting on the fence about whether buying now is a smart move, the news that property prices are set to rise steadily should be the ideal motivation to get moving and take all the important steps to save your deposit and organise your approval for a mortgage before the market’s anticipated rise over the next couple of years makes it harder to access the property of your dreams at the price you can afford.
By being realistic about your budget and having pre-approval on a mortgage that’s right for you, buying property as soon as possible could be one of the best financial decisions you’ve made.
To find out more about how you can secure pre-approval to help you buy a property, talk to our mortgage broking professionals at Lending Specialists today.