C&G: Spring Real Estate Market Update

With winter well and truly behind us, the spring property season is now in full swing – it’s one of the most popular times of the year to buy, sell or make changes to your home or investment property. In today’s blog, C&G bring you a  spring property update to help you better understand the seasonal market forces in play – and how they may affect your decision to buy, sell or stay put. 

Spring is a hugely active time in the Melbourne real estate market – whether you’re selling to up-or-downsize, refinancing to expand your property portfolio, or jumping into home ownership for the first time. 

One of the most notable influences on the real estate market this spring are APRA’s new policies on investment lending. Lenders are not permitted to grow their investment lending by more than 10% YoY (year on year), leaving more funds set aside for owner-occupier loans. These new regulations will likely drive down rates on owner-occupier loans, creating new opportunity for first time buyers to break into the market. If you’re already a homeowner, this season offers you the lowest rates on record on refinancing, representing a unique opportunity for owners to drive capital into other investments or home improvements.

The Melbourne property has remained robust throughout winter, having managed to side-step the common ‘winter slump’. Home values were up 10.59% compared to this time last year, and an all-time high for auctions saw August come to a close with a bang – and a 78% clearance rate.

If you’re looking to buy property this season – either as a newcomer to the property investment market or as a seasoned landlord expanding their portfolio – don’t be put off by the APRA-influenced lending environment favourable to owner-occupiers. Consult with your broker or bank to procure a loan that best suits your needs – and remember that even if investor interest rates increase, the RBA cash rate still on hold at 2%.

However you’re thinking about bayside property this spring, Chisholm and Gamon understand how to help you seize every opportunity - no matter your situation. Talk to our team for advice, and enjoy the pending summer of ‘propportunity’!