Traditionally, the real estate market goes through a period of slowdown in the winter months. People get into hibernation cycles, going out less and being less active on the weekends. On top of this, homes tend to look much better in spring, when it's easy to make outdoor areas in particular look beautiful.
As a result, you can see listings drop quite a lot throughout June, July and August, with prices following suit. But has this actually happened for real estate in Melbourne in 2016?
Melbourne's growth the best in the country
Capital growth is a great metric for investors, as it shows how much values have increased by over a set period of time. According to the latest from CoreLogic RP Data, Melbourne's year-on-year median dwelling value growth is now at 13.9 per cent – the best in the country.
These values also went up by 1.6 per cent in May alone. It goes to show that even as we head into winter, the Melbourne market is still growing. If you're thinking about apartments for sale in Melbourne as an investment, there's still plenty of capital opportunity! In fact, another CoreLogic RP Data report noted that in the year to May, total actual returns on investments for Melbourne increased by 17.5 per cent – again, the biggest result in the country.
Rents on the rise
If you are thinking about investing or being a tenant in Melbourne's rental property market, then the change in costs for this part of the real estate industry will be pretty important. CoreLogic RP Data's Rent Review for May has shown that in the past year, average rents went up 2.3 per cent in Melbourne to reach $457 per week.
Only Hobart saw more of a rise, while main cities actually saw the average rental costs fall over the past 12 months. Despite this rise, Melbourne is still nearly $150 cheaper per week than Sydney on average, positioning our part of the country as a relatively affordable place to rent. Yields have edged up a little bit to 3.3 per cent too, which is better news for property investors.
Lending remains strong
A growing housing market wouldn't mean much if people weren't interested in buying real estate.
Of course, a growing housing market wouldn't mean much if people weren't interested in buying real estate. Fortunately for Melbourne, and Victoria in general, it seems like people are still champing at the bit to take out a home loan and look at buying.
The Housing Industry Association (HIA) remarked in a June 8 press release that throughout April, lending for new owner-occupier homes went up 4.5 per cent. This shows that even while headlines suggest investors dominate the property market, many people are still finding their way and managing to secure finance for their own home.
An eye on the coming months
All in all, this shows us that Melbourne's property, whether it's auctions or private treaties is still an appealing prospect. After all the capital growth we saw last year, there was a lot of concern about a housing bubble that would burst, leaving a lot of home owners in the lurch and the market bereft of growth.
Clearly, that trend has been eschewed, with growth in nearly all corners of Melbourne's market. While issues like stamp duty and rising prices are still there, many Australians are getting professional help and working out new strategies that mean they can buy Melbourne property without incurring much stress at all.