The year 2019 was a good year for the property dealers and real estate developers, the main reason behind it was that during the previous year the interest rates were comparatively low, mortgage rates were also not much high, and the dealers were required to pay a fewer amount of taxes. Similarly, economists and other experts have predicted that 2020 will be even more successful year. Given below are some facts that will indicate the bloom of the property market, especially in Melbourne, that is forecasted in 2020. If you are wondering how the year 2020 will be good for the Melbourne property market then the article will surely help you a lot:
The prices of houses are forecasted to become more reasonable
The prices of houses in Melbourne were increasing gradually from the year 2012 to the year 2019. However, it is expected that the prices will gradually decrease in the coming months. It means that it will become easier for people to own houses as well as other property in Melbourne, during the current year. One can build the home of their dreams by having a look at affordable home designs in Melbourne. For someone who wants to pursue their dream of becoming the best builder in their vicinity, this year is going to be a great time.
Developments are increasing
Along with the affordability of houses, the development of other property i.e. buildings is also likely to increase during 2020. It is also predicted that high developments and constructions in Melbourne can decrease the cost of property, which too is beneficial for the property builders.
Interest rate is also predicted to decline
During 2020, the overall Interest rate is likely to decline in Australia, especially the interest charged on the property. The investors and home buyers are expected to get benefit from the low interest rate, as they have to pay low interest rates. It is also expected that the declining of interest rates will have a negative effect in an unstable real estate market.
Increase in the percentage of Investments
Surprised by the growth of the property market in Melbourne as well as in whole Australia many investors, local as well as foreign, are planning to invest their funds in the Melbourne’s property market. Investing in the property market is becoming a trend in Melbourne. It is also predicted that by the end of 2020 the property market would have expanded a lot in size.
Drop in the auction clearance rate
The percentage of property sold at auction in a week or month is termed as an auction clearance rate. In the previous years when the prices of houses were high the auction clearance rates were also very high, but now as the prices of houses are decreasing, so are the rates of auction clearance. However, one problem with it is that the rates have already fallen a lot, and if they continue to do so the investors will have to face serious trouble.