Families seek mortgages for Melbourne properties
Melbourne property appeals to a wide range of buyers, but the latest data suggests it is families who are the most active demographic at the moment.
There's a growing trend among families going in search of more spacious homes, the Real Estate Institute of Victoria (REIV) reveals, which is helping to shape property prices across the region.
Families are often in search of a wide range of features when they go looking for a home. For example, access to quality schools and open spaces is usually high on the list of priorities.
There's also the fact that families want to feel safe in their new neighbourhood, so locations with low crime statistics are likely to feature high on the agenda.
How are Melbourne property prices performing?
CEO of the REIV Enzo Raimondo revealed that during the year to September 30, the average price of a four-bedroom home increased 3.9 per cent compared to the 12 months to June 30.
However, in the city's outer suburbs where larger homes are generally located, price increases registered at 5.6 per cent. As for middle Melbourne suburbs, the median price of a four-bedroom house has escalated 4.1 per cent.
As a result, you can expect to pay as much as $1.45 million for a four-bedroom home in inner Melbourne, although this figure declines to $551,000 in the outer suburbs.
What type of property are families looking for?
The REIV acknowledged an interesting trend in the type of housing families are looking for, which has also been reflected in the latest prices.
There has been increased competition for smaller, more affordable homes, perhaps as people have been encouraged to secure cheap home loans in the low interest rate environment.
Affordable properties in the outer suburbs give an opportunity to enter the market and get onto the ladder for the first time - something that may not be possible in areas closer to the CBD.
This is true of families who are just finding their way in the property market, whereas those who are hoping to make their next purchase might be more likely to consider more spacious homes.
With more top quality developments springing up all over the country, it's perhaps not surprising that buyers are keen to cash in on the properties they have always dreamt of.
There has also been a shift in the way in which people are buying property in Melbourne, as the REIV has seen a rise in the number of auctions being finalised in the city's outer suburbs.
Whereas private sales had previously taken priority, a growing number of buyers are recognising the benefits of heading to auction.
Are families able to access home loans?
Of course, the first stage of any property purchase is being able to secure the home loan needed to make it happen.
The Australian Bureau of Statistics (ABS) has released lending figures for September, which showed first-time buyers comprised 12 per cent of total home loans granted during the month.
If you're hoping to buy a new property in Melbourne then you won't be alone, as the ABS found a 1.2 per cent rise in the number of loans granted for the purchase of new dwellings. This compared to a 0.3 per cent fall in mortgages for established properties.
The Housing Industry Association (HIA) responded to the figures, highlighting that lending for new properties has now reached a 20-year high.
HIA Chief Economist Harley Dale said: "That is a healthy result in terms of the short term outlook for new home construction. The demand for new housing reflects activity from first home buyers, trade-up owner occupiers and investors."
Image credit: Michele Ukleja