Hi ,
If you're trying to establish a foothold in the
property market and struggling, recent data from CoreLogic might explain why.
The median house price in Melbourne is $860,000 according to CoreLogic data. But their modelling shows that if an average household with a gross annual income of $100,000 saved a 20% deposit, they could only borrow enough to
buy a property worth $513,000 - without spending more than 30 per cent of their income on mortgage repayments.
And where in Melbourne might you find houses valued at $513,000 or less? Currently, in just two suburbs: Melton and Melton South.
In a recent interview conducted by Domain, I explained that the rising cost of living was also impacting buyers' ability to make a purchase. And with investors selling because of higher taxes, Melbourne doesn't have enough buyers with suitable borrowing power to meet the increasing supply. I also suggested buyers could no longer see value in Melbourne's high-end
properties, and were seeking more affordable options.
With Melbourne house prices dropping as much as 6 to 9 per cent during the December quarter, it remains to be seen if property prices can realign to meet the average Melburnian's borrowing capacity - a target currently still well out of
reach.
