Melbourne Property Market Forecast in 2015
Whether shopping for a new home, selling a current property or just curious, knowing what to expect from the property market in Melbourne is extremely important. From what the interest rates are going to do with how well homes are going to sell, all of this can be forecast, to some extent, for the upcoming year. So, for anyone who is looking for this kind of information, it is possible to find it.
This is what to expect from the upcoming property marketing this coming year.
Naturally, interest rates have a very important role on how the housing and property market turns out. In 2014, the interest rate was at one of the lowest points in the history of the country. This was not just for Melbourne and the rest of Australia, but for many locations throughout the world as well.
Now, more likely than not, the interest rate is still going to remain low throughout 2015, but chances are, it is going to raise at least a bit. Currently, it sits right at around 2.5 percent. It is still potentially going to sit under 3 percent, but not by much. This is still a nice price for those looking to buy a home, but it is going to be higher than before.
This is because the government does expect more people to start looking for places to purchase, which means it is going to increase the internet rate, at least somewhat. Now, the interest rate is not just going to jump instantly. It needs to happen slowly in order to prevent killing off the housing market, but it is, at some point, going to happen.
Unemployment also has a factor in the property market. When someone is struggling with work, they simply are not able to go out and purchase a new home or really anything else that they might that is on the larger side (such as a new vehicle). Currently, the unemployment rate sits at around six percent.
It is expected that the unemployment rate is going to increase slightly to anywhere between 6.1 and 6.25 percent for the year, although this can always change. It should not have a drastic impact on the housing sector, but it may mean there is slightly fewer people looking to buy a new home in Melbourne.
Beyond this, the price of houses is still a bit high, which is going to hold the market back.