Home > Buying and Selling Tips > 2017 – What’s To Come

Subscribe to our forum

Receive new forum posts by email

FREE Property Appraisal

Click here to request property appraisal

Sign Up for our publications

Click here to sign up for our publications

Archives

2017 – What’s To Come

January 11th 2017

A new year has begun—can you believe it? When another year ticks over, it often comes hand in hand with looking forward, starting fresh, making predictions and creating goals. In the first few weeks of 2017 many of you will begin planning for the year ahead, including what you see yourself doing with your current home, investments, first homes, renovations and developments. Before you put these plans and aspirations into action, take a look at all the information for the months coming ahead; what could 2017 bring?

 

 

 

 

The Reserve Bank’s record low interest rate of 1.5 per cent will remain until at least their next meeting in February, as discussed by Domain. For those still looking for the perfect home or for first home buyers ready to enter the housing market, this low interest rate may allow them to secure an opportunity to gain a foothold in the housing market. The low interest rate is certainly likely to spark interest from buyers.

One of main aspects of the real estate chase includes the decisions behind the purchase, including where you want to buy, how much you want to spend, and the type of house you’re after. Fletchers Waverley Director, Kelly Sun believes “South Eastern suburbs will keep going up in prices, however the property market over 2 million will slow down due to current mortgage policies from the bank.” He also recommends for buyers looking to buy in the South Eastern area with budgets from 1 – 2 million to have a look at Glen Waverley or Burwood, and for those with budgets below 1 million, Rowville would be a great suburb to consider.

Domain noted the expert predictions regarding Melbourne’s median house price. Although it rose approximately 10 per cent in 2016, this year it may slow down to 5 per cent or even lower. For first home buyers who have struggled to enter the market in the past, this may give them an opportunity to aim for a steadier goal for their savings. It may also give them greater leeway to fully scope out the market before coming to a decision, without time equalling money. Based on the activity he has seen so far, Director Tim Heavyside predicts that, “2017 should be a bumper year in real estate, with solid growth in the residential market somewhere between 5% to 10%.”

Dr Andrew Wilson, Domain Group’s Chief Economist, predicts that Melbourne and Sydney will remain at the lead of Australia’s capital city markets in 2017. The REIV furthered this theory, highlighting Victoria’s strong economic growth throughout 2016 despite other states slowing, indicating that Victoria’s housing market could remain strong even in 2017. Kelly Sun reminds buyers and sellers that Melbourne won the most liveable city in the world again, which is likely to attract people to move to our city.

A great tip for potential sellers from Fletchers Glen Iris Director, Michael Richardson is to get into the auction market at the beginning of the year, as there is often an influx of keen buyers. Kelly Sun agrees, noting that “Melbourne`s south eastern suburbs will have a very strong market due to the high demand from overseas buyers, especially in January and February”.

For investors nearing the end of owning their current properties, Tim Heavyside advises that “if you are selling an apartment that you have owned for 3 to 5 years, do not expect the same type of return. This part of the market is flooded with new builds. The unit/townhouse market is extremely strong with terrific enquiry from buyers wanting this type of accommodation now and well into 2017”.

If you have any questions regarding Fletchers properties, or simply would like to have a chat about the real estate market, feel free to contact a member of our team