Melbourne’s median house price has risen again, dealing another blow to home-buying hopefuls. Can the price rises continue?
Melbourne’s house prices have risen for the second quarter this year, up 0.6 per cent in the September quarter.Even though another interest rate rise is on the horizon, it’s unlikely to push prices lower, economists said.Melbourne’s house prices have risen for two quarters in a row, adding another blow to home-buying hopefuls already hampered by rising interest rates.
House and unit prices are now higher than they were a year ago but still below their peaks, said Domain chief of research and economics Dr Nicola Powell.The market has been resilient, not showing the huge price swings normally seen during a downturn, she said. House prices are down 5.7 per cent since the peak in late 2021.
With Melbourne’s median above $1 million and rises across the city, affordability has taken a hit, Powell said, adding that some buyers find they need to make compromises to be able to purchase.Laine Delahunty and his wife Harriet Delahunty faced an affordability challenge after looking to buy a house in Kensington where they lived in a unit they owned.
The couple had almost given up, when they found a four-bedroom home in Pascoe Vale, buying the property in June. It’s unlikely that prices will ease any time soon said both Powell and the Commonwealth Bank’s head of Australian economics, Gareth Aird.A booming population and ultra-tight property market had warded off large price declines in Melbourne, with prices expected to remain stable this year. “There is no obvious catalyst for prices to move lower unless the Reserve Bank moves rates materially higher,” Aird said.
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