This year we have seen continued growth in the Melbourne property market. The Yarra Ranges and Maroondah area are still proving to be good growth areas with 5-10% increases in most suburbs. This takes into account a fairly sluggish May which saw Melbourne prices drop on average by approximately 3%, which could largely be due to the release of the federal budget. Since then we have continued to see a good amount of activity within the market from both buyers and sellers in the winter months – traditionally seen as a quieter period.
Interest rates are still at a record low and with no major fluctuation in consumer confidence in the real estate market or other major sectors it is unlikely that we will see any large shifts in these rates for the rest of the year. This is great news for home owners and buyers but not so much for those with term deposits etc.
First home buyer stamp duty savings are also still active with current reductions at 40% and with a reduction of 50% for those settling on or after September 1st. This along with low interest rates and an increase in consumer confidence is keeping the market stable whilst still providing growth.