If you’ve been reading about the housing market in the media lately, you may wonder if now is the best time to be buying your first home.
We’re going to explain why land is still hot property even as Melbourne’s housing market slows.
Here are 5 reasons to be motivated about buying your first home in the current market:
- The vast majority of media reporting relates to declining values across the established housing market.
It’s referring to established housing in Melbourne’s leafy inner suburbs, where reports say the median house price has fallen annually by 4.5%.
Far from being a bubble, however, this is more widely described as a ‘market correction’, as explained in our next point…
- The unsustainable price growth for inner city housing over the last few years has led to a much-needed market correction.
Inner city house prices have been rising at unprecedented levels in the last few years and the market simply couldn’t keep up with the pace.
As the market resets and adjusts, it will settle at a more sustainable growth rate. This is good news for home buyers in the long-term.
- The demand for outer suburbs and undeveloped land remains robust.
The more affordable outer suburbs and land markets are showing more resilience than the established inner suburbs, with median prices increasing by 3.7% and 11.3% respectively.
So if you’re considering building your first home in these areas, don’t be discouraged! In fact, the good news is…
- The economy in Australia, and particularly in Victoria, is strong.
We have continued population growth, a 10-year-low unemployment rate, low interest rates and record public infrastructure spending programs.
These conditions should support an orderly correction of the housing market and more sustainable sales volumes in the future.
And lastly, but equally important…
- The major developers and international investors are staying put.
There continues to be significant international investment in developments around Victoria and the large-scale developers remain committed to their long-term investment strategies – both points indicating confidence in Victoria’s property outlook.
What does all this mean for first home buyers?
With this market rebalance, supply is beginning to outstrip demand and for the first time in three years the median lot price has declined, albeit marginally by 1.4% to $320,500 – so we believe now is a great time to get into the market.
And we’re not the only ones to think so – first home buyers accounted for close to two thirds (63%) of the overall buyers in the September quarter this year – up from 56% in the same quarter last year.
Carlisle Homes House & Land Manager, Nicole Dowling says “The dream of owning your own home has never been more achievable. My team is leveraging strong connections and relationships with developers to ensure we provide the best house and land solutions for our customers.”
To find out more about House & Land opportunities, request a no-obligation appointment with a Carlisle Homes consultant today.