CoreLogic RP Data has released its Home Value Index for July 2016, and the so-called 'combined capitals growth cycle' is showing absolutely no sign of slowing down. This is illustrated by a 6.3 per cent increase in the value of state capital dwellings over the last seven months alone. Underlining this leap is also the fact that July represents the 50th month of the growth cycle.
This is great news for those who own property in capitals like Melbourne or Sydney, the two highest performing cities. Of course, suburbs experiencing steady growth also make for very solid investments.
So, what does this information mean for Melbourne specifically? And more importantly, why is now a great time to look at buying or selling property in Brunswick?
That changes that we've seen in Melbourne over the last few years have been drastic. Since June 2012, home prices have risen by a whopping 42 per cent – an eye watering number for anybody looking to sell their Brunswick property. Nobody expects this growth to last forever, and with the annual increase having slipped below 10 per cent, now may just be the time to start tidying things up around the place and talking to a realtor about what sort of prices you can expect your property to reach on the market.
This growth is most pronounced in suburbs that have increased in value through other means. A great example is infrastructure, which has improved in terms of services like public transport – especially in high density areas like Brunswick. In fact, Brunswick has proved to be one of the smartest buys that you could have made in Melbourne, along with other outer suburbs like Collingwood and Coburg. Using the median sale price as a benchmark, a Brunswick property sold in 2012 for $633,000 would today be worth $815,000.
While the increase in value might seem to indicate that buying a new home is difficult, that isn't the case according to many experts. With the Reserve Bank of Australia recently cutting the interest rate to a record low. The first drop since May, this makes now a better time than ever to nab yourself a great deal on a new property. Melbourne also represents a better buy than many other cities where rates are either inflated or the market is struggling. Compared to Sydney, for example, the average house price is $585,000 versus $775,000.
All of these factors point to Brunswick remaining a great place to buy for years to come, and if the values keep going up, you may just find that you've made a very smart investment indeed.