With the federal election nipping at our heels, prospective buyers and sellers will be wondering what will happen to house prices post-election. Well, here are our Melbourne house price predictions for 2022 and we promise it’s not all doom and gloom.
The wider economic picture
In the 2022/23 Federal Budget, the LNP announced that a further 50,000 places will be made available under various government schemes to help more Australians buy their first homes.
This includes the First Home Guarantee, the Family Home Guarantee and the Regional Home Guarantee.
Fortunately, both major parties agree on first-home buyer saving schemes and have very similar housing policies. So in this instance, things will remain basically the same no matter who wins the election.
It all comes down to interest rates
The major factor impacting house prices post-election is good old interest rate rises. House prices surged after the 2019 election, but a post-vote downturn is expected this year, thanks to interest rates. Experts expect the RBA to increase interest rates four or five times to 3.25 percent in 2023, with the first rise predicted to happen just weeks post-election.
This will certainly put pressure on many Aussie mortgage holders and will see other prospective and first-home buyers straining their budgets. If this prediction is true, it may result in reduced auction and private sale prices in some cities.
What does this mean for Melbourne house prices in 2022?
So, there are positives and negatives concerning Melbourne house prices post-election. If you’re a prospective buyer, it should be good news. As many people buy and sell in the same market, the main thing is to do so when you need to. West of Melbourne remains an attractive destination for families and those wanting a mix of green space and city access, and we have many buyers on our books, so do get in touch if you are thinking of selling once the election is over.
More certainty around Melbourne’s property prices will be a welcome relief to many prospective buyers, as there was certainly a strong increase during the pandemic. In fact, Melbourne’s median house price rose 18.6 percent in 2021 to a cool $1,101,612.
However, across Australia prices only grew a cumulative 0.34% in March 2022, which was the slowest monthly growth since May 2020. The slowing price increases are also thanks to a rise in supply and the market becoming less competitive in the past six months, with Australia slowly returning to some kind of normal post-pandemic.
Vendors who held back from listing properties on the market during the pandemic are now finally releasing that stock, which will be of interest to buyers who will be out and about in the next few months.
Should you list your home on the market post-election?
On the other hand, if you’re looking at selling your home, post-election is often a great time to put your house on the market as history shows there’s usually a bounce in buyer activity around this time, and as we mentioned recently, international buyers are also looking to Point Cook and the wider region. The other bonus is that post-election this year coincides with things slowly returning to some kind of normal post-pandemic. These two factors will benefit sellers.
While you may be concerned about rising interest rates affecting your bottom line and selling success, rest assured that there is still an ongoing housing shortage across Australia. So if you need to sell, you can do so confidently as there will undoubtedly be a buyer out there for you and your property.
Thinking of selling? Give us a call.
If you’re looking at listing a property in Melbourne’s West post-election, talk to our experienced team at Established Property. When you combine our exceptional marketing and negotiation skills with our expert knowledge of the region, you have a recipe for success.