The property market has shifted in Melbourne, and the recent data from Domain confirms what we’ve observed firsthand over the past months. Melbourne is now officially in a buyer’s market. For vendors, this means adjusting expectations to achieve successful sales; otherwise, they risk staying on the market longer and potentially receiving lower offers than anticipated.
Key Market Insights
- Median House Price Decline: Melbourne’s median house price has dropped for the third consecutive quarter, with a decline of $16,000 (or 1.5%) over the September quarter alone. This is the steepest quarterly drop in two years, marking an annual decline of 1.5%. The partial recovery seen in 2023 has now been fully erased, pushing prices below the March 2023 trough.
- Unit Market Performance: Melbourne’s median unit price rose modestly by nearly $3,000 (or 0.5%) over the September quarter, significantly lower than the historical quarterly average of 2.4%. However, units are currently outperforming houses, and the price gap between these property types has narrowed to a three-year low. The median house price is now 79% higher than a unit – a drop of 10 percentage points from the record gap in March 2023.
Why Now is the Ideal Time to Buy
Whether you’re looking for a principal place of residence or an investment property, Melbourne’s current market offers unique opportunities. With the Reserve Bank of Australia signaling the potential for interest rate cuts as early as next year, buyer demand is likely to increase – a factor that could put upward pressure on prices once again.
This window may not last, so reaching out for a buyer discovery meeting now could be the key to securing the right property before the market shifts.
If you’re considering your options, please contact us at Abode Advocacy Group. We’re here to help you navigate this market and find the best possible opportunities.
