9th December 2019: Melbourne's Property Market 2019-2020

As we edge our way closer to warmer mornings and brighter days, Summer is traditionally the time of year to kick back, wind down and reflect on the year that was.

Looking back on the year, we've seen the market undergo several key changes in what has resulted in a remarkably quick and positive turnaround for the industry.

Successive cash rate cuts, population growth, loosened credit restrictions and the re-election of the Coalition government back in May have all contributed to the trend. Together, this has encouraged buyers back into the market and pushed house prices up by as much as 5% in Victoria over the last quarter.

In fact, the REA Group reported record visits to realestate.com.au in September and October, with September showing a rapid increase in property enquiries of 30% year-on-year.

REIV President, Leah Calnan, said 'Victorian property is a growth asset; anybody who bought in the market five years ago would see an amazing return'.

Alongside a resurgence in investor activity, all signs are currently pointing towards a much healthier landscape for the property market in 2020.

But while the positive market conditions have proved encouraging for buyers, demand continues to outweigh supply as listing volumes have remained particularly low in recent months.

Domain economist, Trent Wiltshire, notes that the results being achieved points to solid price growth in the Melbourne market, with demand remaining strong as 2019 comes to an end. He comments, 'if prices continue to rise in 2020, which is looking likely, I think we'll continue to see new listings rise next year'.

Similarly, a recent report from The Australian Financial Review forecasts a surge in house prices of 11% for Melbourne over the next 12 months, which is set to restore Melbourne's property prices to the peak of 2017 by mid-next year.

Commencing on January 1st 2020, first home buyers will have the opportunity to take advantage of the Federal Government's First Home Loan Deposit Scheme, which will allow first home buyers to enter the market without needing to save a 20% deposit.

The scheme will support up to 10,000 first home buyer loans each year, meaning eligible participants will be able to purchase their own home years earlier than they would normally be able to do so.

Operated by the National Housing & Finance Investment Corporation, the scheme aims to support low and middle income earners across Australia. With applications now open, the Morrison government says the plan 'will be a game changer for first home buyers with the potential to substantially reduce the average waiting time to save the relevant deposit to purchase a home by at least half'.

As the decade draws to a close, the strong performance of the market is likely to continue into the New Year as homeowners take advantage of renewed levels of buyer demand.

With economists referring to the recent surge in house prices as a 'mini-boom' for the industry, we are expecting the market to bounce back in full force come February and March, which is a traditionally busy time in real estate (particularly for the auction market).

If you are considering selling in the first half of 2020, our advice is to get in early. This will allow us to secure the best possible dates for your campaign and create a customised marketing strategy for your property.

Please don't hesitate to get in touch with your local Fletchers agent for more information.