Melbourne home loans out of reach for many
Article by Mozo
Would-be home loan customers in Melbourne could struggle to get on the property ladder if prices begin to rise again.
Over the course of the past year, property prices in the city have fallen by an average of 2.1 per cent.
However, researchers for Australian Property Monitors have warned that subsequent increases to prices would stymie growth in the home loans market.
APM economist Andrew Wilson told the Sydney Morning Herald: "It will take at least another ten years of flat house prices coupled with income growth for houses to regain an affordable status."
He added that those who already have home loans for properties in Sydney and Melbourne can take comfort in the fact that the property markets in both cities have been extremely resilient over the past 12 months.
Recently, Residex forecaster John Edwards claimed that Sydney is currently the "star" of the Australian property market and could signal the strength of the country's property sector in the coming years.