The overpriced Melbourne property market boom has come to a halt with the latest data showing median house prices are on the decline.
Unofficial data compiled from domain.com.au found here, shows the median house, townhouse and unit prices have dropped after reaching all-time highs in 2017.
In 2017, the average price of a house in Melbourne reached just over $1.1 million, with the average in 2018 already dropping by 2.5%.
Figures from data.vic.gov which can be seen here, show 2014 as having the highest house price growth per annum, reaching a whopping 6.31%. However, latest figures show the pace slowing down with the growth per annum for 2018 tipped at 5.77%, nearly 1% down from 2017.
House prices have been steady since the early 2000s, however since 2012, Melbourne house prices have sky rocketed, seeing average figures as high as $5 million in the south eastern suburb of Toorak in 2017.
Data from data.vic.gov shows that already this year, Toorak’s average has fallen to $3.6 million, whilst other expensive south eastern suburbs such as Malvern have recorded its highest average at $3.3 million since the initial property market boom.
With the latest data proving to be a step in the right direction for first home-buyers wanting to buy into these areas, experts believe it will still be a few years before house prices become more affordable.
Matthew Swinnerton, Property Manager from Ray White Oakleigh, still believes it is going to be hard for those wanting to enter the property market.
“Whilst it is an ideal time for first home-buyers to purchase a property based on the evident decline in sales prices, it is also becoming increasingly difficult for buyers to have a home loan approved to begin with,” Mr Swinnerton said.
As the banking Royal Commission comes to a head, banks are becoming stricter on handing out loans, making it harder for those wanting to enter the property market.
Experts believe that the decline in house prices is just the beginning, with predictions that they will continue to plummet much faster than they rose.
