There are many predictions revolving around the state of Melbourne real estate. But what are the experts saying about the outlook on the city's housing?
BIS Shrapnel has prepared an extensive report for QBE, which gives an in-depth look into the future of residential property in Melbourne and across the country.
The city has had a phenomenal year in housing growth. Melbourne experienced 33 per cent growth in its median house price between the June quarters of 2012 and 2015. This price increase has been helped pushed on by record low interest rates caused by the cash rate cut in May this year.
But what does 2016 hold?
The prices of Melbourne houses and units are predicted to rise by 4.9 per cent and 0.9 per cent respectively next year. This reflects a cooling of prices in the city's market which can be attributed to government interventions to remedy Australia's drop in housing affordability.
For instance, the Australian Prudential Regulation Authority has been pressuring banks to restrict their lending toward investors via a ten per cent 'speed limit'. The intention to reduce housing price growth has clearly been taking effect. Furthermore, a sharp jump in building approvals this year should see fresh supply hit the market soon enough.
Price increases are forecasted to more or less cease in the year beyond that (2017), highlighting a complete return of stability to Melbourne's real estate market. As a seller, this means it could be worth your while to take advantage of this window and sell your real estate in Brunswick before then.
While price rises are beginning to cool in Melbourne, there is still plenty of momentum and activity in the market to take advantage of. If you're eager at the chance to make a huge profit off your property in Brunswick, just get in touch with the experts at Ray White Brunswick.