2016 will remain a buyers market, I expect buyers will once again outnumber sellers. This is a common seasonal characteristic of the early autumn market, just as there tends to be a glut of sellers in the late spring market.
Price growth has slowed toward the back end of 2015 in the face of tougher lending practices with low interest rates tipped to remain unchanged for most of next year.
'Melbourne’s three-and-a-half year growth cycle for house prices is clearly easing.'
Competition for family-sized houses is expected to remain hot, especially in school zones, while demand for apartment falls due to an oversupply.
Vendors will not see a repeat of reserves being over exceeded like in 2015, rather a more realistic approach when it comes to market value.
Chief executive Enzo Raimondo of the REIV said while price growth would slow next year, Melbourne’s growing population and low interest rates would mean continued buyer demand.
Melbourne’s auction market has finished the year in good shape, but the city’s three-and-a-half year growth cycle for house prices is easing.
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