Melbourne property recovery will be delayed to 2021/2022: Finder.com.au

Melbourne property recovery will be delayed to 2021/2022: Finder.com.au
Melbourne property recovery will be delayed to 2021/2022: Finder.com.au

Melbourne homeowners may need to wait at least two years before the property market shows signs of growth according to Finder, Australia’s most visited comparison site. 

In this month’s Finder RBA Cash Rate Survey™, all experts surveyed expect a cash rate hold in August (40/40), with the consensus being that no further cuts will be implemented this year. However, more than two-thirds (26, 72%) of experts forecast an increase in 2021 or 2022.

Of those who weighed in on property, the majority are pessimistic about Melbourne prices increasing before April 2021 (75%, 18/24), while one-third (29%, 7/24) expect the market to stagnate until 2022 or beyond.




The outlook is slightly rosier for the Sydney housing market, with 38% of experts (9/24) predicting that house prices will recover before April 2021. 

Graham Cooke, insights manager at Finder, said that the unpredictability of COVID-19 has sent ripples of unease through the market.

“Both Melbourne and Sydney experienced double-digit growth throughout most of 2019. But widespread unemployment, travel bans and a second virus wave has caused a surge in property vacancies throughout both capitals."

“Melbourne’s median house price fell by 3.5% to $881,369 between March and June 2020, and Sydney wasn’t far behind with a 2% drop during this period."

“As Sydney teeters on the edge of a second major outbreak, prospects may be equally grim for homeowners here when it comes to the housing market recovery period,” Cooke said. 

A surprisingly high percentage of experts and economists (42%, 11) also believe that now is a good time for homeowners to put their property on the market. 

Only a quarter of experts (26%, 7) said homeowners should wait for 2 years before selling their property.

Cooke said, “It is clear that there is widespread uncertainty in the market as to what prices will be in the near future."

“With investors fleeing the market, banks are fighting tooth and nail for owner-occupier customers. It’s the ultimate borrower’s market. If your home loan has a 3 in front of it, you’re paying too much in 2020,” he said. 

Tags: 
Melbourne Price Recovery

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