Vacancy rates in Melbourne have fallen below the average rate for this year, which could be encouraging to investors planning to buy a house in the area.
According to the Real Estate Institute of Victoria (REIV), vacancy rates in Melbourne fell to 2.9 per cent in September. This is a drop from the 3.7 per cent measured in August and is below the average rate for the year.
Currently, consumers appear to be feeling confident about buying property in Melbourne. The lowered interest rates from the Reserve Bank of Australia (RBA) have helped to make housing finance commitments easier to manage. As a result of this coupled with rising wages, housing affordability has improved within Australia.
However, the increase in demand for property has pushed prices up in areas like Melbourne and Sydney. As a result, this has created fears of a housing bubble and could be the reason why people in Melbourne have turned back to renting.
Posted by Craig Francis