We hope you had a happy and safe Christmas and New Years!
Welcome to 2023, lets make this year a great one!
Here is a market update for our local area:
After a prolonged period of decline, the Mornington Peninsula and wider Melbourne housing market is showing signs of stabilising, providing a glimmer of hope for homeowners and investors alike. Despite the challenges faced in recent years, there are several reasons to be optimistic about the future of the housing market.
Firstly, the decline in housing prices in the Mornington Peninsula has started to slow down, with some markets even showing signs of growth. This stabilisation trend is expected to continue in the coming months, as more buyers and investors enter the market and demand for housing increases.
Overall, Melbourne house prices nudged marginally higher over the December quarter. Despite this improvement, houses prices experienced the steepest annual decline in nearly 4 years. House prices are now 5.6 per cent lower compared to the December 2021 peak. However, they are a substantial 17.2 per cent higher than before the pandemic property boom.
Another factor contributing to the positive outlook of the Mornington Peninsula housing market is the rumours of interest rates also stabilising. The Reserve Bank of Australia has been keeping interest rates relatively low in order to not shock the economy. With an expected rate rise coming in February when the RBA meets, there are many economists and property experts stating this may be one of the last rises we see this year, they are even saying that we might see a decrease in interest rates later in the year. This trend is expected to continue in the future, further fueling demand for housing and contributing to the overall growth of the sector. However, this comes with a caveat.
The caveat is the big elephant in the room, inflation. The December quarter figures came in higher than expected at 7.8 per cent, increasing by 1.9 per cent in the three months to December. Indications are showing that we have passed peak inflation and the hope is it starts to decline and the RBA back off on rate rises.
In addition, the Mornington Peninsula has always been a popular destination for those seeking a coastal escape, and this is unlikely to change in the near future. They don't make land anymore!
Another factor contributing to the positive outlook of the housing market is the strong economic conditions in the area. The region has a low unemployment rate, a stable economy, and a strong business community, which has helped to create a healthy environment for the housing market to thrive.
In conclusion, the Mornington Peninsula housing market slowdown appears to be losing momentum, with several positive indicators pointing to a stabilisation. With a positive economic outlook, a desirable coastal lifestyle, and a strong economy, the future is looking bright for the Mornington Peninsula, providing a ray of hope for homeowners and investors alike.